Answer:
a. $187.20.
b. $202.48.
c. $217.43.
Explanation:
Please find the below for detailed explanations and calculations:
We have the formula for determining the future price of the non-dividend-paying stock as below:
Future price = Spot price x (1+ annual risk free rate )n; which n = number of year(s) to maturity.
Thus, apply the general formula above, we have the below calculations:
a. Future price = 180 x (1+4%)^1 = $187.20;
b. Future price = 180 x ( 1+4%)^3 = $202.48;
c. Future price = 180 x (1+6.5%)^3 = $217.43.
At the beginning of Year 1, your auto-insurance premium for the next year is $300. If you have 0 accidents in a year your premium for the next year drops 10 percent, if you have 1 accident in a year your premium for the next year increases10 percent, and if you have 2 accidents in a year your premium for the next year increases 30 percent. Set up a spreadsheet that will determine the premium cost for Years 1–30. (Hint: # of accidents are up to you. Idea is to create an IF formula that will return the correct auto insurance premium in each year for any number of accidents.)
Answer:
Consider the following explanation.
Explanation:
step 1. Excel formula that will determine the premium cost for years 1-30 is as follow :
A=Accident
formula as follows,
step 2. if(a=0,(300-300*10%),if(a=1,(300+300*10%),if(a=2(300+300*20%))))
Final answer:
To calculate an auto-insurance premium over a 30-year period, input $300 for Year 1 and use an IF formula to adjust the premium based on the number of accidents each year, applying a 10% decrease, 10% increase, or 30% increase to the previous year's premium accordingly.
Explanation:
Creating a Spreadsheet for Auto-Insurance Premiums
To set up a spreadsheet that calculates auto-insurance premiums for 30 years based on the number of accidents, you can use the IF function in Excel or any other spreadsheet software. Here is a step-by-step guide:
Start with $300 as the premium for Year 1 in cell A1.In cell B1, enter the number of accidents for Year 1.In cell A2, write the IF formula: =IF(B1=0, A1*0.9, IF(B1=1, A1*1.1, IF(B1=2, A1*1.3, "Invalid"))). This formula checks the number of accidents in Year 1 and calculates the premium for Year 2 accordingly.Drag the formula in cell A2 down to cell A31 to apply it for all 30 years.In cells B2 to B31, enter the number of accidents for each subsequent year.Adjust the percentages in the formula if the premium adjustment rates change. By changing the number of accidents in column B, you can see how the premiums are adjusted each year based on your given conditions.
How to calculate the free cash flow of the firm (also referred to as the firm’s free cash flow) directly?
Answer:
Explanation:
The formula to compute the free cash flow of the firm is shown below:
= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure
In this we deduct the changes in net capital and net capital expenditure and added the depreciation and amortization expenses to the Earning after tax so that the correct amount can be computed
Quasi Contract Middleton Motors, Inc.. a struggling Ford dealership in Madison, Wisconsin. sought managerial andfinancial assistance from Lindquist Ford, Inc. a successful Ford dealership in Bettendorf, Iowa. While the two dealershipsnegotiated the terms for the services and a cash infusion, Lindquist sent Craig Miller, its general manager. to assumecontrol of Middleton. After about a year. the parties had not agreed on the terms, Lindquist had not invested any money.Middleton had not made a profit. and Miller was fired without being paid. Lindquist and Miller filed a suit in a federaldistrict court against Middleton based on quasi contract, seeking to recover Miller’s pay for his time. What are therequirements to recover on a theory of quasi-contract? Which of these requirements is most likely to be disputed in thiscase? Why? [Lindquist Ford, Inc. v, Middleton Motors. Inc, 557 F.3d 469 (7th Cir. 2009)]
Answer:
Quasi Contract:
In the case of Lindquist Ford, Inc. v. Middleton Motors, Inc., 557 F.3d 469 (7th Cir. 2009) the trial court settled money damages to Lindquist. The Court of Appeals reversed the result that the trial court had mismanaged the mutual law theories of quantum meruit and unjust augmentation and imprisoned for a new trial. The trial court settled damages to Lindquist and Miller for Miller's salary.
Explanation:
The necessities to improve on the quasi-contract theory are as follows:
The party looking for damages discussed a benefit on the other party. That party also discussed the benefit with the sensible expectation of being paid. The party was not performing as a volunteer in providing this benefit. The party getting the benefit would be irrationally enriched if permitted to retain the benefit without disbursing for it.All of these necessities must be encountered in order for a quasi-contract judgment to be awarded.
The necessities under unjust improvement are as follows:
A benefit discussed upon the perpetrator by the plaintiff. Appreciation by the respondent of the fact of such benefit. Acceptance and retention by the respondent of the benefit, under conditions such that it would be discriminatory to retain the advantage without payment of the worth thereof.Lindquist met the essentials required for unjust enhancement and the court fund in their favor.
The necessities under quantum merit are as follows:
The complainant must prove that the respondent requested the plaintiff's services. It was reasonable for the applicant to expect reimbursement for the services. Lindquist met the elements compulsory for quantum meruit and the court found in their favor.The condition most likely to be doubtful in this case is whether or not the party seeking compensations actually discussed a benefit upon the other party, or whether Lindquist essentially conferred a benefit upon Middleton through the management of Miller. The court resolute through indication presented that Lindquist and Miller had a reasonable anticipation to payment for services rendered and that Middleton received a benefit from Miller's services
Final answer:
In Lindquist Ford, Inc. v. Middleton Motors, Inc., the court would need to determine if the requirements for a quasi-contract have been met, especially whether it is inequitable for Middleton to retain management benefits without payment.
Explanation:
In the case of Lindquist Ford, Inc. v. Middleton Motors, Inc., the concept of a quasi-contract is discussed. A quasi-contract, also known as an implied-in-law contract, is designed to prevent unjust enrichment. It is not a true contract, but rather a legal substitute formed to impose equity between two parties.
To recover on a theory of quasi-contract, certain requirements must be met: (1) a benefit conferred upon the defendant by the plaintiff, (2) the defendant's appreciation or knowledge of the benefit, and (3) the defendant's acceptance or retention of the benefit under circumstances making it inequitable for them to retain the benefit without paying for it.
In the situation with Lindquist and Middleton, the most disputed requirement is likely to be whether it is inequitable for Middleton to retain the benefit of Miller's management without paying. Since the parties did not finalize an agreement and Miller was fired without being paid, determining the equity of the situation could be challenging.
Under sec rules establashed by nsmia, an individual that files a registration application will be denied if the applicant has:
Answer:
The correct answer is: served one (1) year or more in jail.
Explanation:
The National Securities Markets Improvement Act (NSMIA) is a U.S. securities regulation law. It aims to give more regulatory power to the federal government. Under this law, people who would like to apply to become securities brokers must not have a prison history as inmates for more than one (1) year. Otherwise, their application will be denied.
Electric, Inc. was incorporated on January 1, 2016. Electric issued 7 comma 000 shares of common stock and 1 comma 200 shares of preferred stock on that date. The preferred stock is cumulative, $ 100.00 par, with an 10% dividend rate. Electric has not paid any dividends yet. In 2019, Electric had its first profitable year, and on November 1, 2019, Electric declared a total dividend of $ 50 comma 000. What is the total amount that will be paid to preferred shareholders?
Answer:
$48,000
Explanation:
The computation of the total amount paid to the preferred shareholder is shown below:
= Number of preferred stock shares × par value × dividend rate × number of years
= 1,200 shares × $100 × 10% × 4 years
= $48,000
Simply we multiplied with the number of preferred stock with the par value, its dividend rate and the time period so that the correct value can come
All other information which is given is not relevant. Hence, ignored it
At the price of $5 per pack of batteries, Duracell sells 10,000 packs of batteries and Energizer sells 15,000 packs of batteries. When the price rises to $7.50, Duracell sells 12,000 packs of batteries and Energizer sells 16,000 packs of batteries. What is the market supply at $7.50? Question 11 options: A.12,000 B. 16,000 C. 4,000 D. 28,000 E. 25,000
Answer:
D.28000
Explanation:
Lets first understand what market supply is? Market supply is the accumulation/aggregation of total supply made by individual suppliers/vendors who are willing to provide at the current/prevailing prices. The market supply basically reflects the willingness of the vendors to supply goods/services at a given rate. Market supply can be either expressed in monetary terms or in terms of quantity.
So the market supply at $7.50 is as follows:
Market supply @ $7.50 = 12000 + 16000
Market supply @ $7.50 = 28000
It can be generally agreed that an increase in price can lead to an increase in supply by vendors, owing to the fact that the suppliers find a greater margin for themselves. Now in this question, we can see that at the price of $5 per pack of battery Duracell and Energizer sell 10000 and 15000 packs respectively and when the price rises to $7.50 both Duracells and Energizer sell more than what they were selling at $5 per pack.
The market supply of batteries at $7.50 is the sum of the quantities supplied by Duracell and Energizer, which is 28,000 packs.
The market supply at the price of $7.50 is the total quantity of battery packs supplied by both Duracell and Energizer at that price point. Duracell sells 12,000 packs and Energizer sells 16,000 packs when the price is $7.50. To find the market supply, we simply add these two quantities together: 12,000 packs (from Duracell) + 16,000 packs (from Energizer) = 28,000 packs. Therefore, the market supply at $7.50 is 28,000 packs of batteries.
Barry was assigned recently to a large team working on a major software release that was taking longer than expected. Barry and the other latecomers into the project spent a month partnered with a senior programmer who went over the project in detail with them and got them up to speed. Unfortunately, this training put the project even farther behind schedule. After a few months of working on the project with so many other programmers, Barry's work output becomes noticeably lower than it was before when he was working independently. Barry's reduced work output is most likely due to __.
Answer:
Social loafing
Explanation:
Social loafing
Social loafing- it is refer to that condition when any member of a team show lack of interest when he/she is working in team than working alone. It is refer to mindset that people are more often work carelessly when task are assigned for group, it happened because sometimes people think some other member from group will take care of the assigned task.
Barry's reduced work output is most likely due to social loafing, where individuals exert less effort when working in a group.
Explanation:Barry's reduced work output is most likely due to social loafing. Social loafing refers to the phenomenon where individuals exert less effort when working in a group because their individual performance cannot be evaluated separately from the group. This can lead to a decline in performance, especially on easy tasks.
Links Golf Course is planning for the coming golfing season. Investors would like to earn a 10% return on the company's $60,000,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $32,000,000 for the season. About 600,000 rounds of golf are expected to be played each year. Variable costs are about $15 per round of golf. Links Golf Course is a price-taker and will not be able to charge more than its competitors, who charge $75 per round of golf. Compute the operating profit that will be earned.Select one:A. $6,000,000B. $46,800,000C. $87,800,000D. $5,800,000E. none of the above
Answer:
Option (E) is correct.
Explanation:
Revenue at the competitor price:
= Rounds of golf are expected to be played each year × Charge per round
= 600,000 × $75 per round
= $45,000,000
variable Cost:
= Rounds of golf are expected to be played each year × Variable cost per round
= (600,000 × $15)
= $9,000,000
Contribution Margin:
= Revenue at the competitor price - variable Cost
= $45,000,000 - $9,000,000
= $36,000,000
Less: Fixed Costs = 32,000,000
Operating profit:
= Contribution Margin - Fixed Costs
= $36,000,000 - $32,000,000
= $4,000,000
So, the operating profit is $4,000,000.
Links Golf Course has a total revenue of $45,000,000 from playing rounds, with total variable costs of $9,000,000, and fixed costs of $32,000,000. The operating profit calculates to $4,000,000, which does not meet the investors' expected 10% return on $60,000,000 of assets. The correct option is E. none of the above.
To calculate the operating profit for Links Golf Course, we need to consider the fixed costs, variable costs, total assets, and the expected return rate. The formula to calculate operating profit is: Operating Profit = Total Revenue - (Fixed Costs + Variable Costs).
First, let's calculate the total revenue. If the golf course charges $75 per round and expects to see 600,000 rounds played, the total revenue would be:
Total Revenue = Price per Round × Number of Rounds = $75 × 600,000 = $45,000,000
Next, we calculate the total variable costs:
Total Variable Costs = Variable Cost per Round × Number of Rounds = $15 × 600,000 = $9,000,000
Now we can calculate the operating profit:
Operating Profit = $45,000,000 - ($32,000,000 + $9,000,000) = $45,000,000 - $41,000,000 = $4,000,000
However, since the investors expect a 10% return on $60,000,000 of assets, which is $6,000,000, the operating profit does not meet their expected return. Therefore, the answer closest to our calculation is E. none of the above.
If the reserve requirement is 5 percent, a bank desires to hold no excess reserves, and it receives a new deposit of $10, then this bank a. must increase its required reserves by $10. b. will initially see its total reserves increase by $10.50. c. will be able to make new loans up to a maximum of $9.50. d. All of the above are correct.
Answer:
c. will be able to make new loans up to a maximum of $9.50
Explanation:
If the reserve requirement is 5% it means that the bank is required to reserve(not loan out) 5% of it's reserves so in this case the bank is required to 5% of 10 (0.05*10) $0.50 as reserves and can loan out $9.50 (10-0.50). As the bank has no desire to hold on to excess reserves we can be sure that it will only hold 0.50 as reserve as it is required and loan out $9.50. So statement c is correct.
Statement A is incorrect because the bank does not need to increase required reserve by $10 but by just $0.50.
Statement B is incorrect a deposit of $10 cannot increase the total reserve by $10.50 as it is impossible mathematically.
Statement d is incorrect because 2 of the 3 statements are incorrect therefore all of the above statements cant be correct.
Joni is considering job offers from two companies. Company A offered her a starting salary of $54,660 with a 4.8% raise at the end of each year. Company B offered her a starting salary of $61,400 with a raise of $2400 at the end of each year. What is the ratio of Joni's salary one year compared to her salary in the previous year for Company A?
Answer:
1.048
Explanation:
Data provided in the question:
Starting salary offered by company A = $54,660
Raise in salary by company A = 4.8% = 0.048
Starting salary offered by company B = $61,400
Raise in salary by company A = $2400
Now,
Amount of raise in the salary offered by company A
= 4.8% of $54,660
= 0.048 × $54,660
= $2,623.68
Therefore,
Salary after 1 year in company A
= Starting salary + Amount of raise in the salary
= $54,660 + $2,623.68
= $57,283.68
Therefore,
The ratio of Joni's salary one year compared to her salary in the previous year for Company A
= $57,283.68 ÷ $54,660
= 1.048
Final answer:
The ratio of Joni's salary one year compared to her salary in the previous year for Company A after a 4.8% raise is the new salary divided by the original salary, which is approximately $57,283.68 / $54,660 when calculated.
Explanation:
The student is asking about calculating the ratio of Joni's salary one year compared to her salary in the previous year for Company A. To determine this, we calculate the percentage increase in Joni's salary. Company A offers a 4.8% raise each year.
To express the new salary as a ratio relative to the original salary: Her new salary is her original salary plus 4.8% of her original salary. In other words, Joni's new salary will be 104.8% of her original salary, since 100% represents her original salary and the 4.8% is the raise.
Mathematically, this can be represented as:
Original salary = $54,660New salary = Original salary + (4.8/100) \ imes Original salaryNew salary = $54,660 + ($54,660 \ imes 0.048)New salary = $54,660 + $2,623.68New salary = $57,283.68The ratio of the new salary to the original salary is therefore $57,283.68 / $54,660, which can be simplified.
Which of the following about economic growth is true? a - The fastest growing economies in the world (those with annual real growth rates of 3.5 percent or more) are mostly less developed countries. b - The fastest growing economies in the world are mostly high-income industrial countries. C - The slowest growing countries in the world, many of which are experiencing declines in per capita GDP, are less developed countries. d-Both a and c are true,
Answer:
d-Both a and c are true
Explanation:
Less developed countries in the world show both diverting behaviors. The fastest-growing economies in the world (above annual growth of 3.5%) are mostly less developed countries as China, India, and Panama. It is also true C, where the slowest growing economies in the world experiencing declines in per capita GDP are less developed countries too, like Venezuela and Siria
Options a and c are true, indicating that the fastest growing economies are mostly less developed countries, while many of the slowest growing ones with declines in per capita GDP are high-income nations.
Explanation:The correct answer to the question about economic growth is d-Both a and c are true. From the information provided, it is clear that the fastest growing economies are mostly less developed countries, as shown by the inclusion of countries with high growth rates in the 'fast growth club'. Examples include China and India, which have been experiencing growth rates significantly above the world average, particularly higher than those seen in high-income Western nations.
On the other hand, several high-income nations fall into the 'slow growth club', which means their economies are growing at a slower pace, sometimes only 2% per year or less. This includes advanced economies like the United States, France, Germany, Italy, and Japan. Therefore, while less developed countries are experiencing rapid economic growth, leading to a potential convergence with high-income countries, many high-income nations are experiencing slower economic growth rates.
A rotary engine powers a vertical takeoff and landing (VTOL) personal aircraft known as the Moller Skycar M400. It is a flying car known as a personal air vehicle (PAV), and it is expected to make its first untethered flight in 2020. The PAV has been under development for 28 years at a total cost of $120 million. Assuming the $120 million was spent in an equal amount each year, determine the future worth at the end of the 28-year period at an interest rate of 8% per year.
Answer:
$409.18million
Explanation:
Since the amount of $120 million is to be spend in equal installments over a period of 28 years, therefore it will be appropriate to calculate the Future worth using future value of annuity formula:
Future value of annuity = (R((1+i)^n-1)/i)Here R= Installment per year=$120/28=$4.29millioni=interest rate=8%n= number of year=28Future worth at the end of 28 years=4.29(((1+8%)^28-1)/8%) =4.29(7.63/8%) =4.29*95.38 =$409.18million
The future worth of the $120 million spent on the development of the Moller Skycar M400 over 28 years at an interest rate of 8% per year is approximately $1,357.91 million.
To determine the future worth of the $120 million spent on the development of the Moller Skycar M400 over 28 years at an interest rate of 8% per year, we can use the future value formula for equal annual payments:
\[FV = PMT \times \left( \dfrac{(1 + r)^n - 1}{r} \right)\]
Where:
- \(FV\) is the future worth (the amount we want to calculate).
- \(PMT\) is the equal annual payment (the annual cost of development), which is $120 million / 28 years = $4.2857 million per year.
- \(r\) is the annual interest rate, which is 8% or 0.08.
- \(n\) is the number of years, which is 28.
Now, plug these values into the formula:
\[FV = $4.2857 \, \text{million} \times \dfrac{(1 + 0.08)^{28} - 1}{0.08}\]
\[FV = $4.2857 \, \text{million} \times \dfrac{(1.08^{28} - 1)}{0.08}\]
\[FV \approx $4.2857 \, \text{million} \times \dfrac(25.339) {0.08}\]
Now, calculate the future worth:
\[FV \approx $4.2857 \, \text{million} \times $316.7375\]
\[FV \approx $1,357,913.06 \, \text{million}\]
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What are the roles of actual returns and expected returns in investment planning?
Answer:Actual returns is the actual gain or loss an investor gets on an investment while Expected return is the return an investor is expected to get on an investment which can be positive or negative.
Explanation: Actual returns is the return an investor actually receives on his investment which can affects its net worth positively or negatively. It can be referred to as the internal rate of return on an investment.
Expected return is also known as anticipated rate of return. It is not certain but it is an expectation. It can be calculated as the expected value of an investment. It is used to calculate the viability of an investment. It is historical in nature and therefore it does not have a guaranteed outcome.
On January 1, GHI Corporation issued four-year bonds with a face value of $100,000. The bonds have a stated interest rate of 4 percent. When the bonds were issued, the market interest rate was 5 percent. The bonds pay interest once per year on December 31. Determine the amount that GHI received at issuance. Your answer should be rounded to the nearest full dollar (i.e., no cent
Answer:
Year Cashflow DF@5% PV
$ $
1 4,000 0.9524 3,809.60
2 4,000 0.9070 3,628.00
3 4,000 0.8638 3,455,20
4 104,000 0.8227 85,560.80
Market price of the bond 96,454
The amount that GHI received at issuance is $96,454.
Explanation:
In this case, we need to calculate the current market value of the bond. The annual coupon is calculated as R = 4% x $100,000 =$4,000, which is 4% of the face value. We will discount the annual coupon and face value of the bond at 5% market interest rate. The cashflow for year 4 is the aggregate of coupon and face value of the bond. The current market value of the bond calculated above is the amount that GHI received at issuance of the bond.
GHI Corporation received $92,278 at issuance for the four-year bonds with a face value of $100,000.
Explanation:GHI Corporation received $92,278 at issuance for the four-year bonds with a face value of $100,000. To determine the amount received at issuance, we need to calculate the present value of the future cash flows associated with the bonds. Since the market interest rate was 5 percent and the stated interest rate on the bonds was 4 percent, the bond price will be less than the face value.
Using the present value formula:
Bond price = Coupon payment / (1 + i) ^ n
Coupon payment = $100,000 x 4% = $4,000i = 5% (market interest rate)n = 4 (number of years until maturity)Plugging in these values into the formula:
Bond price = $4,000 / (1 + 0.05) ^ 4 = $92,278 (rounded to the nearest dollar).
Therefore, GHI Corporation received $92,278 at issuance for the four-year bonds.
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Galt Industries has no debt, total equity capitalization of $600 million, and an equity beta of 1.2. Included in Galt's assets is $90 million in cash and risk-free securities. Assume the risk-free rate is 4% and the market risk premium is 6%.Galt's enterprise value is closest to:A) $90 millionB) $510 millionC) $600 millionD) $690 million
Answer: A
Explanation: using capital asset pricing model.
Ke=Risk free rate + Beta (risk premium)
Ke = 0.04 + 1.2(0.06)
Ke = 0.112.
value of equity = $600m × 0.112 = $67,200,000
value of cash= $90m × 0.112 = $10,080,000
Total value of firm = value of equity + value of cash
= $67,200,000+$10,080,000
= $77,280,000
The enterprise value of Galt Industries is calculated by subtracting the value of cash and risk-free securities from the total equity capitalization (i.e., $600 million - $90 million), resulting in $510 million.
Explanation:The equity capitalization of Galt Industries is given as $600 million. This includes $90 million in cash and risk-free securities. Therefore, while calculating the enterprise value, we need to subtract the value of unnecessary cash kept by the company from the total equity capitalization. Thus, the enterprise value of the company is $600 million (equity capitalization) - $90 million (cash and risk free securities) = $510 million. Therefore, the enterprise value of Galt Industries is closest to $510 million.
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If there is a recessionary gap in the short run, the Federal Reserve can eliminate the gap in the short run by undertaking a policy action that raises aggregate demand. But, if Federal Reserve chooses not to close the gap in the short run, the economy will eventually get back to full employment in the long run. Because when there is a recessionary gap in the short run, then in the long run a new equilibrium will arise as input prices and expectations adjust downward, causing the aggregate supply to shift downward and to the right and pushing equilibrium real GDP back to its long-run potential value.
a. A monetary policy action that could eliminate a recessionary gap in the short run is an open market sale of government securities a decrease in the required reserve ratio a decrease in taxes .
b. If Fed implements the short run monetary policy option instead of simply waiting for the long -run adjustments to take place, then it
Answer:
D. harms the society by interfering with the economy's natural process.
Explanation:
In order to get out of recession, the fed should reduce the tax rates, which would in return lead to higher disposable income of the consumers, and then there will be an increase in the demand.
On the other hand the sale of bonds would even further increase the recession, as there will be more cash crunch in the economy. A decrease in reserve ratio will be a long time taking solution, so it would not provide an immediate solution.
MCQ
But, if the fed interferes with the short run equilibrium in the hope of giving short run benefits, it will hamper the economy's natural process to attain a new equilibrium as discussed in the paragraph above. Hence, option D is the correct answer
Option A and C are incorrect, because, employment is not much affected with lowering of income tax. On, the other hand, inflation levels rise, when there is a cut in income tax, as it gives more currency in the economy, hence even C is incorrect.
This is the process of reviewing all change proposals, estimating their impact on project goals wherever appropriate, approving or declining changes, and managing changes to deliverables, schedules, budgets and the project management plan:
a. Perform project monitoring.
b. Perform configuration management
c. Perform variance analysis and control.
d. Perform integrated change control.
Answer:
The correct answer is letter "D": Perform integrated change control.
Explanation:
Perform Integrated Change Control is the mechanism to review all demands for change; authorize changes and handle changes to deliverables, organizational process materials, project records, and project management plan; and communicate their management.
Perform Integrated Change Control is the process which involves reviewing all change proposals, estimating their impact, and managing changes to deliverables, schedules, budgets and the project management plan. It is a pathway of maintaining balance in the project when changes occur. Thus, ensuring the project remains beneficial even with changes.
Option D is correct
Explanation:The process of reviewing all change proposals, estimating their impact on project goals wherever appropriate, approving or declining changes, and managing changes to deliverables, schedules, budgets and the project management plan is known as Perform Integrated Change Control.
This process involves looking at how potential changes to the project could affect different elements, such as time, cost, and quality. One could think of it as a balancing act, where the project manager tries to keep all aspects of the project in equilibrium. For example, if a new requirement would demand more resources or time, the project manager would have to determine whether it's practical to adjust the schedule or budget to accommodate that change.
In conclusion, the process described is a critical part of project management aimed at ensuring that any changes to a project are manageable and beneficial to the project's overall goals.
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Natalie is thinking of repaying all amounts outstanding to her grandmother. Recall that Cookie Creations borrowed $2,000 on November 16, 2017, from Natalie's grandmother. Interest on the note is 9% per year, and the note plus interest was to be repaid in 24 months. Recall that a monthly adjusting journal entry was prepared for the months of November 2017 (1/2 month), December 2017, and January 2018. (a) Calculate the interest payable that was accrued and recorded to January 31, 2018. Round to nearest dollar. (b) Calculate the total interest expense and interest payable from February 1 to August 31, 2018. Prepare the journal entry at August 31, 2018, to bring the accounting records up to date. Round to nearest dollar. (c) Natalie repays her grandmother on September 15, 2018-10 months after her grandmother extended the loan to Cookie Creations. Prepare the journal entry for the loan repayment.
Answer:
Cash 2,000 debit
Note payable 2,000 credit
--to record signing of the note--
interest expense 7.50 debit
interest payable 7.50 credit
--adjustment for the half-month--
interest expense 15 debit
interest payable 15 credit
--adjustment for december-
interest expense 15 debit
interest payable 15 credit
--adjustment for january-
interest expense 105 debit
interest payable 105 credit
--adjustment for August 31th-
Note payable 2,000 debit
interest payable 142.5 debit
interest expense 7.5 debit
cash 2,150 credit
--to record honor of the note--
Explanation:
interest for half-month :
2,000 x 9% x 0.5 / 12 = $7.50
interest for a month :
2,000 x 9% x 1/12 = $15.00
For February 1st to August 31th:
$15 dollar per month x 7 months = $105
honor of the note at September 15th:
nterest for half-month :
2,000 x 9% x 0.5 / 12 = $7.50
Total interest accrued: 7.5 + 15 + 15 + 105 = 142.5
Answer:a) interest payable $540, b) total interest expense for seven months $1,260, interest payable $2,520, c) loan repayment interest after 10 month $1,800
Total amount repaid $3,800
Explanation:
To calculate the simple interest on the loan
SI = Principal × Rate × Time/100
Principal =$2,000, Rate = 9%, T = 24 months
2,000 × 9 × 24/100
= 432,000/100
= 4,320
Amount = interest + Principal
4,320 + 2000 = 6,320
To calculate the monthly interest
4,320÷ 12 = 360
Therefore the amount interest payable accrued recorded
= 360,× 1/2
= 180 each month
For November, December, January will be
180 ×3 = 540
Journal entry
Interest expense Dr : $540
Interest payable. Cr :$540
b)
To calculate interest expense, we use the formula
Principal =$2,000 Rate = 9%, T = 7 months
P × R × T / 100
2000 × 9 × 7 /100
= 126,000÷ 100
= 1,260
Therefore to calculate interest payable, Since the simple interest
= $4,320, we will first calculate for the monthly interest
4,320÷12 = 360
Therefore the interest payable for 7 months
= 360 × 7
= 2,520
Journal entry
Interest payable Cr : $2,520
Less Interest expenseDr : $1260
Balance c/d Dr :$ 1,260
Total balance Dr $2,520, Total balance Cr : $2,520
c)
To calculate the repayment of the loan by Natalie ten month after the grandmother extended the loan. Using the formula SI = Principal × Rate × Time /100
Principal = $2,000, Rate 9%, Time = 10 months
2,000 × 9 × 10 / 100
= 180,000 ÷ 100
= 1,800
Amount = interest + Principal
= 1,800 + 2,000
= 3,800
Journal entry
Loan account Dr: $2,000
Loan interest Dr: $$1,800
Bank Account Cr: $3,800
Total balance Dr :$ 3,800 ,
Total balance Cr: $3,800
A company bought a $1,000,000 building and $500,000 of land with a $300,000 cash down payment and used a new mortgage to pay the balance. What is the investing cash flow in this transaction?
The company purchased a building and land for a total of $1,500,000, making a $300,000 cash down payment. The investing cash flow for this transaction is $300,000. So, the correct option is d.
Let's go into more detail with the step-by-step calculation:
1. Total Purchase Price:
- Building cost: $1,000,000
- Land cost: $500,000
Total Purchase Price = Building cost + Land cost
= $1,000,000 + $500,000
= $1,500,000
2. Cash Down Payment:
- Cash down payment made: $300,000
3. Balance Financed through Mortgage:
The remaining amount after the down payment is financed through a mortgage:
Balance Financed = Total Purchase Price - Cash Down Payment
= $1,500,000 - $300,000
= $1,200,000
4. Investing Cash Flow:
The investing cash flow is the cash outflow related to the purchase. In this case, it's the cash down payment:
Investing Cash Flow = Cash Down Payment
= $300,000
So, in summary, the company paid a total of $1,500,000 for the building and land. They made a $300,000 cash down payment, and the remaining $1,200,000 was financed through a mortgage. The investing cash flow, which represents the cash outflow related to the purchase, is $300,000.
Complete question :- A company bought a $1,000,000 building and $500, 000 of land with a $300,000 cash down payment and used a new mortgage to pay the balance. What is the investing cash flow in this transaction?
a. ($1,200,000).
b. ($1,500,000).
c. ($1,000,000).
d. ($300, 000).
e. ($1,800,000).
Final answer:
In the described transaction, the investing cash flow is a $300,000 outflow, which is the cash down payment made for the purchase of a building and land totaling $1,500,000.
Explanation:
In the transaction described, a company bought a $1,000,000 building and $500,000 of land, making a $300,000 cash down payment and financing the remainder with a new mortgage. The investing cash flow for this transaction would be the cash outflow to acquire the building and land, totaling $1,500,000. Since the company used a $300,000 down payment, this amount represents the outflow in the investing activities section of the cash flow statement.
The rest of the purchase price paid by the mortgage does not affect the cash flow statement immediately, as this represents a financing activity, not an investing activity.
Chang Corp. has $375,000 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $515,000, and its net income was $25,000. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15.0%. What profit margin would the firm need in order to achieve the 15% ROE, holding everything else constant?
a. 10.92%
b. 9.41%
c. 11.82%
d. 8.11%
e. 12.66%
Answer:
Profit Margin = 10.92%
so correct option is a. 10.92%
Explanation:
given data
assets = $375,000
sales = $515,000
net income = $25,000
return on equity = 15.0%
ROE = 15%
to find out
What profit margin would the firm need
solution
we know that Profit Margin is
profit margin = Net Income ÷ Sales .............1
here Net Income is = Common Equity × ROE
net income = $375,000 × 15%
so from equation 1
Profit Margin = [tex]\frac{375,000*0.15}{515000}[/tex]
so
Profit Margin = 10.92%
so correct option is a. 10.92%
Chang Corp. would need a profit margin of 10.92% to achieve a 15% return on equity, by calculating the target net income based on their assets and applying it to their sales. The correct answer is a.
Explanation:To find the profit margin needed for Chang Corp. to achieve a 15% return on equity (ROE), we first calculate the target net income for a 15% ROE. This is done by multiplying the total equity, which is the same as the total assets in this case because the company has zero debt, by the target ROE percentage.
Target net income = Total assets × Target ROE
Target net income = $375,000 × 15%
Target net income = $56,250
Now, we calculate the profit margin by dividing the target net income by the sales, and then multiplying by 100 to get the percentage.
Profit margin = (Target net income / Sales) × 100
Profit margin = ($56,250 / $515,000) × 100
Profit margin = 10.92%
The firm would need a profit margin of 10.92% in order to achieve the 15% ROE, holding everything else constant.
Natalie is thinking of buying a van that will be used only for business. The cost of the van is estimated at $36,500. Natalie would spend an additional $2,500 to have the van painted. In addition, she wants the back seat of the van removed so that she will have lots of room to transport her mixer inventory as well as her baking supplies. The cost of taking out the back seat and installing shelving units is estimated at $1,500. She expects the van to last about 5 years, and she expects to drive it for 200,000 miles. The annual cost of vehicle insurance will be $2,400. Natalie estimates that at the end of the 5-year useful life the van will sell for $7,500. Assume that she will buy the van on August 15, 2017, and it will be ready for use on September 1, 2017. Natalie is concerned about the impact of the van’s cost on her income statement and balance sheet. She has come to you for advice on calculating the van’s depreciation. Prepare three depreciation tables for 2017, 2018 and 2019: one for straight-line depreciation , one for double-declining balance depreciation, and one for units-of-activity depreciation. For units-of-activity, Natalie estimates she will drive the van as follows: 15,000 miles in 2017; 45,000 miles in 2018; 50,000 miles in 2019; 50,000 miles in 2020; and 40,000 miles in 2021. Recall that Cookie Creations has a December 31 year-end.
Double-declining-balance depreciation: What is just the NBV (Beg. of Year) for 2017, 2018, and 2019?
The net book value for the van at the beginning of 2017, 2018 and 2019 is $40,500, $24,300 and $14,580 respectively using the double-declining balance depreciation method.
Explanation:
To calculate the net book value (NBV) for the years 2017, 2018, and 2019, we need to determine the initial cost of the van and the residual value at the end. In this case, the initial cost includes the purchase price of the van ($36,500), the cost of painting the van ($2,500), and the cost of the seat removal and installing shelving units ($1,500). So, the initial cost is $40,500. The residual value after 5 years is the expected selling price of the van, which is $7,500.
Next, before we can calculate the depreciation and subsequent NBV with double-declining balance depreciation, we calculate the straight-line depreciation rate. It is 1/5 (or 20%) because the van will last 5 years. The double-declining balance rate is then 2 times the straight-line rate, which gives us a rate of 40%. Unlike other methods, initial NBV with double-declining balance starts depreciating right from the beginning, so NBV at the beg. of 2017 is $40,500.
In 2018, the depreciation would be 40% of the NBV at the beg. of 2018 ($40,500 - $16,200), which gives us $24,300. In 2019, it is 40% of the NBV that year ($24,300 - $9,720), thus resulting in $14,580 as the NBV Beg. of 2019, before depreciation is taken again for 2019.
Learn more about Depreciation here:https://brainly.com/question/17827672
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Which of the following situation would make transaction costs too high to negotiate and therefore the Coase Theorem would not apply?
a. Only a few people are bothered by the pollution in the area
b. Orte Tirm is the cause of the poltution
c. Many people are bothered by pollution in the area
d. Many firms are working together to eliminate pollution
Answer:
d. Many firms are working together to eliminate pollution
Explanation:
Coase theorem is a private solution for the two parties who agree to reduce externalities, i.e., pollution. They negotiate in such a manner that the costs are low as one party takes over other party's polluted assets to reduce pollution. When there are more parties or firms involved to eliminate pollution, it will pose high transaction costs. Therefore, the Coase theorem will not work in that case. So, the option "D" is the correct choice.
Final answer:
The Coase Theorem would not apply in situation d. Many firms are working together to eliminate pollution because it would result in high transaction costs.
Explanation:
The correct answer is d. Many firms are working together to eliminate pollution.
The Coase Theorem states that if transaction costs are low and property rights are well-defined, then parties will negotiate and internalize externalities in order to reach an efficient outcome. However, if transaction costs are too high, it becomes difficult for parties to negotiate and reach an agreement.
In option d, many firms working together to eliminate pollution may lead to high transaction costs. Coordinating the efforts of multiple firms can be challenging and time-consuming, resulting in higher costs associated with negotiation.
Over the past few years, airlines have tended to compete in the market for intercontinental business class travelers on the basis of:_________
A) price.
B) cost.
C) timeliness of their flight schedules.
D) amenities
Answer:
(D) Amenities
Explanation:
Airlines business is very competitive and capital-intensive. Because of its capital-intensive nature, fixed costs and barriers to exit are high. And the way of competing in the market for intercontinental business class travelers is on the basis of amenities.
HVAC Services Inc. employs two hundred workers. Workers who lose their jobs with HVAC may have a right to continued health-care coverage under the company’s group plan. If so, the premiums for the continued coverage are paid by
a. the employer.
b. the still-employed workers.
c. the unemployed workers.
d. the federal government.
Answer:
The correct answer is letter "C": the unemployed workers.
Explanation:
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) passed in 1985, employers who hire 20 or more workers are subject to provide healthcare benefits up to 36 months to their employees after termination of employment caused because of different reasons. In those cases, the ex-workers are responsible for the payment of their premiums.
IE 3-5 ... Interactive Exercises – If an Equilibrium Price of $2.00 results in the longer run from a right shifting of both Supply and Demand behaviors, then Employment in the Mini-economy will be __________ and Quantity of Goods Produced will be _________ ..
Answer:
132 people.
3100 units
Explanation:
Generally, a change in the equilibrium price of goods and services tends to affect the behaviors of demand and supply. For the system above, we have:
IE 3-5 ... Interactive Exercises – If an Equilibrium Price of $2.00 results in the longer run from a right shifting of both Supply and Demand behaviors, then Employment in the Mini-economy will be __132__people______ and Quantity of Goods Produced will be ___3100__units____ .
Abey Kuruvilla, of Parkside Plumbing, uses 1,220 of a certain spare part that costs $26 for each order, with an annual holding cost of $25.
a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimalplaces).
b) What is the economic order quantity?
Answer:
Answer:
Total cost = Total ordering cost + Total holding cost
Total cost = DCo/Q + QH/2
Where D = Annual demand, Co = Ordering cost per order and H = holding cost per item per annum.
For 25 Order Size
Total cost = 1,220 x $26/25 + 25 x $25/2
Total cost = $1,268.80 + $312.50 = $1,581.30
For 40 Order Size
Total cost = 1,220 x $26/40 + 40 x $25/2
Total cost = $793 + $500 = $1,293.00
For 50 Order Size
Total cost = 1,220 x $26/50 + 50 x $25/2
Total cost = $634.40 + $625 = $1,259.40
For 60 Order Size
Total cost = 1,220 x $26/60 + 60 x $25/2
Total cost = $528.67 + $750 = $1,278.67
For 100 Order Size
Total cost = 1,220 x $26/100 + 100 x $25/2
Total cost = $317.20 + $1,250 = $1,567.20
b. The economic order quantity is 50 units because it reduces the total cost to $1,259.40
Explanation:
In this case, we need to determine the total costs based on different order sizes. Thus, economic order quantity is the order size that minimises the total cost.
Highland Industries makes custom yachts using a job cost accounting system. In anticipation of a busy year for 2019, Highland’s accountant estimated the following overhead costs for 2019: Machinery maintenance $181,350 Utilities $226,380 Supervision $191,000 Materials handling cost $67,000 Building occupancy costs $98,270 Indirect materials $31,650 In the past, Highland has used direct labor hours to allocate overhead to the various yacht building jobs and they anticipate using the same for 2019. Highland anticipates using a total of 72,000 direct labor hours in 2019. At the beginning of 2019, Highland had no yachts in process or finished but did have $202,000 in raw materials left over from 2018. During 2019, Highland began work on 3 yachts (A, B, C). They also purchased and paid for $2,355,000 in raw materials. The predetermined overhead rate using direct labor hours for 2019 would be:
Answer:
predetermined overhead per direct labor hour: $11.02
Explanation:
[tex]\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate[/tex]
To solve for overhead rate we determinate the expected cost and distribute them over a cost driver which is, in this case; direct labor hours
Expected overhead cost:
Machinery maintenance $ 181,350
Utilities $ 226,380
Supervision $ 191,000
Materials handling cost $ 67,000
Building occupancy costs $ 98,270
Indirect materials $ 31,650
Total overhead: $ 795,650
Total direct labor: 72,000
Overhead rate: 795,650 / 72,000 = 11.0206944= $11.02
Loazia Inc. incurred the following costs during the year ended December 31, 2018: Laboratory research aimed at discovery of new knowledge $270,000 Costs of testing prototype and design modifications 75,000 Quality control during commercial production, including routine testing of products 270,000 Construction of research facilities having an estimated useful life of 6 years but no alternative future use 360,000 The total amount to be classified and expensed as research and development in 2018 is a. $675,000. b. $975,000. c. $705,000. d. $405,000.
Answer:
Option (C) is correct.
Explanation:
Given that,
Laboratory research = $270,000
cost of testing prototype = $75,000
construction of research facility = 360,000
The total amount to be classified and expensed as research and development in 2018:
= Laboratory research + cost of testing prototype + construction of research facility
= $270,000 + $75,000 + 360,000
= $705,000
Final answer:
The total amount to be classified and expensed as R&D by Loazia Inc. in 2018 is $705,000, which includes the costs for laboratory research, prototype testing and design modifications, and construction of research facilities with no alternative use.
Explanation:
The total amount to be classified and expensed as research and development (R&D) for Loazia Inc. in the year ended December 31, 2018, includes the costs of laboratory research for discovery of new knowledge, testing of prototype and design modifications, and the construction of research facilities with no alternative future use. The laboratory research costs amount to $270,000, the costs for prototype testing and design modifications are $75,000, and the cost for the construction of research facilities, which solely serve the purpose of R&D and have no alternative use thus making them a sunk cost, is $360,000. This sums up to a total of $705,000, which means the correct answer is c. $705,000. It's important to note that costs for quality control during commercial production are not included in R&D expenses as they are considered part of the manufacturing process.
Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders.
Both types of distributors purchase the same product.
The customer activities and costs for the previous quarter are as follows:Activity JIT distributors Non-JIT distributorsSales Orders 500 30Sales Calls 30 30Service Calls 200 90Average Order Size 90 1,400Manufacturing Cost/Unit $50 $50Customer Costs:Processing Sales Orders $160,000Selling Goods $155,000Servicing Goods $195,000Total $500,000Calculate the activity rate for servicing goods. (Note: Round answer to two decimal places.)
a. $1,000.54 per service callb. $680.50 per service callc. $750.10 per service calld. $672.41 per service calle. $1,089.25 per service call
Answer:
d. $672.41 per service call
Explanation:
The computation of the activity rate for servicing goods is shown below:
= (Total servicing good cost) ÷ (Total service calls)
= $195,000 ÷ 290
= $672.41 per service call
The total service call would be
= JIT distributors + Non-JIT distributors
= 200 + 90
= 290
All other information which is given is not relevant. Hence, ignored it
Which of the following is true about classified ad Web sites?
a. They do not allow the search to be narrowed down to a particular city.
b. They do not list local advertisers.
c. They are typically supported by ad banners of other advertisers.
d. They do not allow the search to be extended nationwide.
e. They do not offer free classified advertising opportunities.
Answer:
The correct answer is letter "C": They are typically supported by ad banners of other advertisers.
Explanation:
A classified ad website is the type of web page that allows a free advertisement in different fields without charge. By doing this, the websites promote the purchase, selling, and bargain of products from different kinds. Usually, the classified website is supported by other advertisers who pay for publishing on the same webpage. Examples of free posting sites are eBay, Craiglist, and OLX.