According to Adam​ Smith's invisible hand.

A. people coordinate their​ activities, resulting in equilibrium in the market.
B. forces are constantly pushing markets out of equilibrium
C. there is an invisible glove that restricts what markets can do.
D. markets need the government to intervene.t

Answers

Answer 1

Answer:

A. People coordinate their activities, resulting in equilibrium in the market.

Explanation:

Adam Smith - a proponent of  Capitalist Economy 'Laissez Faire' i.e free markets proposed that :

Un-intervened (by govt) Markets guided by self interest create more wealth & over all socio economic welfare. Any disequilibrium will be sorted by undisturbed market forces, any government intervention is distortionary.


Related Questions

Major Manufacturing Company has direct materials used of $50,000, beginning raw materials inventory of $10,000 and ending raw materials inventory of $8,000.
Compute the raw materials inventory turnover.

Answers

Answer:

5.55 times

Explanation:

The computation of the raw materials inventory turnover is shown below:

= Direct material used ÷ average raw material inventory

where,  

Average inventory = (Opening balance of raw material inventory + ending balance of raw material inventory) ÷ 2

= ($10,000 + $8,000) ÷ 2

= $9,000

And, the direct material used is $50,000

So, the raw materials inventory turnover would be

= $50,000 ÷ $9,000

= 5.55 times

Final answer:

The raw materials inventory turnover ratio for Major Manufacturing Company is calculated to be 5.78, determined by dividing the cost of goods sold for raw materials by the average inventory.

Explanation:

To compute raw materials inventory turnover, we use the formula: Inventory Turnover = Cost of Goods Sold (COGS) / Average Inventory.

We need to first calculate the COGS for raw materials, which is Beginning Inventory + Purchases - Ending Inventory.

In this case, COGS for raw materials would be $10,000 + $50,000 - $8,000 = $52,000.

Next, we calculate the Average Inventory which is (Beginning Inventory + Ending Inventory) / 2.

The Average Inventory would then be ($10,000 + $8,000) / 2 = $9,000.

Finally, we divide the COGS by the Average Inventory to get the raw materials inventory turnover: $52,000 / $9,000 = approximately 5.78.

Therefore, the raw materials inventory turnover ratio for Major Manufacturing Company is 5.78.

A firm that must invest in new information systems capabilities in order to comply with federal legislation can be said to be investing to achieve which business objective?

Answers

Answer:

Survival

Explanation:

One of the main goals or objectives of a business today is to survive. Survival as a goal can be as a result of legislation or business and environmental demands.

Survival is the ability of an organisation to maintain its share of the maket, competitveness as well as its earning capacity.

Other organisational objectives include: Growth and diversification, stability, organisational efficiency, prestige and recognition.

For an organisation to survive, it must strive to be different, positively different and this will include compliance to legislation (as stated in the question), continous market (SWOT) analysis and execution of new plans. This strategies will require if the need be, investment in new equipment, assets or even the training and recruitment of worker.

Suppose there are seven coffee shops located on the same busy street. Iftwo of the coffee shops close, which of the following will occur, holding all else fixed? Correct Answer(s) Drag appropriate answer(s) here The supply of coffee will increase, since the remaining shops will sell more than before The supply of coffee will d The demand for coffee will decrease. The price of coffee will increase

Answers

Final answer:

Closing two of seven coffee shops will decrease the supply of coffee. With the demand remaining stable (inelastic), this will likely lead to an increase in the price of coffee.

Explanation:

If two of the seven coffee shops on a busy street close, holding all else constant, the supply of coffee will decrease due to fewer sellers in the market. This could, in turn, cause the price of coffee to increase because of the scenario formed by the combination of inelastic demand for coffee and a decrease in supply. Let's consider the elasticity of coffee demand, which is approximate 0.3. This means a 10% rise in the price of coffee would lead only to a decline of about 3% in the quantity of coffee consumed, due to the inelastic demand curve.

Historical examples can help illustrate this: when a major frost hit the Brazilian coffee crop in 1994, coffee supply shifted to the left with an inelastic demand, and prices rose. However, the demand for coffee will probably not decrease with the closure of two coffee shops; rather, the coffee-seeking customers will likely just go to the remaining shops.

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If an economy moves from a point on a production possibility frontier line to a point to the right of that production possibility frontier, what event might have occurred?

Answers

Explanation:

If an economy moves from a point on a production possibility frontier line to a point to the right of that production possibility frontier, there must have been a discovery of new technology that might expand production possibilities.

Final answer:

Moving to a point to the right of the production possibility frontier indicates an improvement in the economy's productive capacity.

Explanation:

When an economy moves from a point on the production possibility frontier line to a point to the right of that frontier, it indicates an improvement in the economy's productive capacity or resources. This could be due to factors such as technological advancements, an increase in the quantity and quality of resources, or improvements in production efficiency.

For example, if a country invests in research and development to develop new technologies, it may be able to produce more goods and services with the same amount of resources, causing the production possibility frontier to shift to the right.

This event illustrates economic growth and the ability to produce more goods and services than before, which is generally a positive development for an economy.

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Hannah Byers and Kathleen Taylor are considering the possibility of teaching swimming to kids during the summer. A local swim club opens its pool at noon each day, so it is available to rent during the morning. The cost of renting the pool during the 10-week period for which Hannah and Kathleen would need it is $1,700. The pool would also charge Hannah and Kathleen an admission, towel service, and lifeguarding fee of $7 per pupil, and Hannah and Kathleen estimate an additional $5 cost per student to hire several assistants. Hannah and Kathleen plan to charge $75 per student for the 10-week swimming class.

(a) How many pupils do Hannah and Kathleen need to enroll in their class to break even?
(b) If Hannah and Kathleen want to make a profit of $5,000 for the summer, how many pupils do they need to enroll?
(c) Hannah and Kathleen estimate that they might not be able to enroll more than 60 pupils. If they enroll this many pupils, how much would they need to charge per pupil in order to realize their profit goal of $5,000?

Answers

Answer:

(a) 26 enrolls

(b) 93

(c) $116.3

Explanation:

No. of students required to cover rental charges:

= $1,700 ÷ $75 (charge per student)

= 22.6

= 23

Other charges $7 per pupil for 23 pupils it will charge:

= $7 × 23

= $161

For hiring assistants it cost $5 per child for 23 kids it will charge:

= $5 × 23

= $115

Total charges incurred for 23 kids:

= $1,700 + $161 + $115

= $1,976

(a) For break even situation molly and Kathleen need 26 enrolls .

(b) Expenses + profit margin

= $1,976 + $5,000

= $6,976

No. of enrolls required to make $5,000 profit:

= $6,976 ÷ 75

= 93

(c) Amount to be charged to make $5000 profit:

= $6,976 ÷ 60

= $116.3

Final answer:

Hannah and Kathleen need to enroll a minimum of 34 pupils to break even. To make a profit of $5,000, they need to enroll 84 pupils. If they can only enroll 60 pupils, they need to charge each one $130 to achieve their profit goal.

Explanation:

In order to answer this question, we first need to determine the total costs and revenues. Costs include the cost of renting the pool ($1,700) and the cost per student for admission, towel service, lifeguarding fee, and hiring assistants ($12 per student). Revenue is simply the amount they charge each pupil ($75).

For part (a), to calculate the break-even point, we set revenue equal to costs. So we have: $75 * X = $1,700 + $12 * X. Solving for X gives us X=34. So, Hannah and Kathleen need to enroll at least 34 pupils to break even.

For part (b), we need to make $5,000 profit on top of breaking even. So we solve: $75 * X = $1,700 + $12 * X + $5,000. This gives X=84. They need to enroll 84 pupils to make a profit of $5,000.

For part (c), if they can only enroll 60 pupils, they need to increase the charge per pupil. So we solve: 60 * Charge = $1,700 + $12 * 60 + $5,000. Solving for Charge, we get $130. So, they need to charge $130 per pupil to attain their profit goal of $5,000.

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Describe the graphical relationship between ticket prices and the number of people choosing to visit amusement parks. Is that relationship consistent with the fact that, historically, park attendance and ticket prices have both risen? Explain.

Answers

Answer:

Please refer the detail answer below

Explanation:

(a) Relationship between ticket prices and the number of people choosing to visit amusement parks.

There is an inverse relationship (Law of Demand) between ticket prices and the number (Quantity) of people visiting amusement parks which means that as the ticket prices increase, people will reduce the quantity demanded of amusement park tickets, and spend their income on other goods. For example, they may decide to go to the movies instead of visiting the now more expensive amusement park.

b) Is that relationship consistent with the fact that, historically, park attendance and ticket prices have both risen?

The fact that, historically, park attendance and ticket prices have both risen over time does not invalidate the Law of Demand. The increase in park attendance maybe due to a change in demand (other factors), not a change in quantity demanded, shifting to the right.

Watch the excerpt from the movie "The Office / Broke." Respond to the following questions: 1. Explain the concepts of fixed cost, variable cost, and avoidable cost. 2. Assume a company has $200 in fixed costs, marginal costs are $10, and the company produces 100 units per year. How low can the price go before it is preferred to shut down

Answers

Answer:

Let's assume 100 units per year is the break even point (in units).

Break even point is that level of sales revenue which covers all of the costs involved i.e. fixed and variable costs both.

Hence, contribution = Fixed costs at Break Even Point

Contribution = Sales - Variable (Marginal) Costs           -      ( Part A )

Hence, Contribution = $ 200 i.e. fixed costs

Now,

$ 200 = Sales - $ 10 ( From Part A)

Sales = $ 210

Now, Shut down point is that that where the firm is just capable of meeting its variable costs from the sales it has earned (price earned).

Hence, the price can go till $ 10 from $ 210 i.e. $ 200 ( $ 210 - $ 10 ) below from the current level.

Hence, the price can go $ 200 down before it is preferred to shut down by the firm.

For 1st part answer refer to the Explanation.

Explanation:

(1) Fixed Costs

Fixed costs refer to the expenses which are always have to be incurred by the business irrespective of the level of output produced. For example, a firm has to pay rent on land on which it is operating , pay CEO's compensation for managing role in the organization (constant part), charge depreciation on production tools and equipments and pay cleaning staff fixed salaries , irrespective of the level of output produced.

(2) Variable ( Marginal costs)  

Variable costs are the costs which have a direct relation with the level of output produced by the firm. For example, the more the no. of units produced the more the labour charges paid, more the raw material payments made and the more the manufacturing related expenses etc and vice-versa.

(3) Avoidable costs

Avoidable costs are the costs which can be controllable i.e. the costs incurring can be avoided by the management. For example, when there is slowdown in the economy, growth and expansion costs can be avoided and production related costs can be cut (variable costs) etc.

For Part 2 answer refer to the "Answer" at the top of the entire solution.

Which PESTEL factors are the most salient for the electric vehicle segment of the car industry? Which PESTEL factors are the most salient for the battery industry? Compare and contrast these two industries with respect to each of the PESTEL factors to determine which industry is positioned to take advantage of the changes in the environment better. Explain

Answers

Answer:

PESTEL factors that are most salient for the electric vehicle segment of the car industry are economical, technological, and ecological.

PESTEL factors that are most salient for the battery industry are technological, social and economic

Explanation:

PESTEL factors that are most salient for the electric vehicle segment of the car industry are economical, technological, and ecological.

PESTEL factors that are most salient for the battery industry are technological, social and economic.

Electric cars would be economic as compared to gas and other forms of energy used to run a car or any other vehicle.

Final answer:

The most salient PESTEL factors for the electric vehicle industry are environmental, technological, and economic, while for the battery industry, technology, environmental, and legal factors stand out. The battery industry has a direct impact on the electric vehicle industry, with advancements in battery tech driving improvements in electric vehicles. Both industries are well-positioned to capitalize on environmental changes, but the battery industry may have a slight edge.

Explanation:

When examining the most salient PESTEL factors for the electric vehicle segment of the car industry, environmental considerations are extremely important due to the push for reducing emissions and combating climate change. Technological advances are critical in improving the range, battery life, and safety of electric vehicles. Economical factors also play a role as subsidies and tax incentives improve affordability for consumers, thereby driving market growth. In contrast, for the battery industry, technological advancement is even more critical as it is directly linked to the performance and cost-effectiveness of batteries which are essential for electric vehicles. Environmental and legal factors are also significant due to the need for sustainable battery disposal and recycling methods, along with regulatory standards related to safety and environmental impact.

Comparing the two industries, both are poised to benefit from changes in the PESTEL environment but in different ways. The battery industry, with its focus on technological innovation and performance, significantly impacts the electric vehicle segment since advancements in battery technology translate directly into improvements in vehicle range and efficiency. Overall, while the electric vehicle industry benefits from environmental policies and consumer trends, the battery industry is crucial in enabling these vehicles to be competitive with conventional cars through technological improvements and cost reductions.

Given the current market dynamics and technological advancements, both industries are experiencing rapid growth, but the battery industry may have a slightly better position due to its fundamental role in the electric vehicle supply chain and the ongoing focus on improving battery technology and production.

A government contributes $20,000 to its pension plan for year 1. The actuarially-determined annual required contribution for year 1 was $27,000. The pension plan paid benefits of $16,400 and refunded employee contributions of $1,600 for year 1. What is the pension expenditure for the general fund for year 1?

Answers

Answer:

$20,000

Explanation:

Since the question is asking for the pension expenditure for the general fund in year 1 which is $20,000 only.  

This above amount reflects the contribution amount towards the pension plan in year 1. The other amount reflects the benefits, required contribution, refunded employee contributions which are of no use for recording the pension expenditure for the general fund.

The amount which is actually paid is only recognized.  

Hence, all other information which is mentioned is not relevant.

Create a list of rules to help you collaborate as a team, including expectations about meetings, communication, course work, conflict resolution, and so on, based on other elements of this charter.

Answers

Answer:

Ground rules helps a team set a guiding course in achieving their team objectives and goals.

Ground rules helps team members to know what is acceptable and what is frowned at.

Example of grounds rules includes:

Lateness to meeting is unacceptable

Communication must be formal and documented

Conflict resolution must be done and addressed by the leadership of the team

Explanation:

Ground rules helps a team set a guiding course in achieving their team objectives and goals.

Ground rules helps team members to know what is acceptable and what is frowned at.

Example of grounds rules includes:

Lateness to meeting is unacceptable

Communication must be formal and documented

Conflict resolution must be done and addressed by the leadership of the team

Assume that in the United States the actual deficit is $300 billion. If the United States were atfull employment, the deficit would be $100 billion. The structural deficit in the United States is

A) $100 billion.
B) $200 billion.
C) $300 billion.
D) $400 billion

Answers

Answer:

A) $100 billion.

Explanation:

Given that

Actual deficit in the united states = $300 billion

At full employment, the deficit in the united states = $100 billion

By considering the above information, the structured deficit would be

In this case, the structural deficit in the United States is $100 billion which is equal to the deficit at full employment in the united states.

Match the below mention information to the given below situation. While some have more than one match. a. Demand decreases and supply increases. b. Demand increases and supply decreases. c. Demand and supply both increase. d. Demand and supply both decrease. i. Gasoline: a new housing development goes up. Several new gas stations are built nearbyii. Taxis: public transit workers at a popular tourist attraction go on strike as a holiday weekend approachesiii. Pumpkins: an early frost destroyed much of the pumpkin crop. A newspaper reports zucchini is better for pie than pumpkin.iv. Corn:news media run stories about people with corn allergies. The corn crop is unusually large.

Answers

Answer:

A. iv

B. ii

C. i

D. iii

Explanation:

A. Demand decreases and supply increases. iv. Corn:news media run stories about people with corn allergies. The corn crop is unusually large.  

B. Demand increases and supply decreases. ii.Taxis: public transit workers at a popular tourist attraction go on strike as a holiday weekend approaches

C. Demand and supply both increase. i. Gasoline: a new housing development goes up. Several new gas stations are built nearby.

D. Demand and supply both decrease. . iii.Pumpkins: an early frost destroyed much of the pumpkin crop A newspaper reports zucchini is better for pie than pumpkin.

Suppose you had a large unpaid balance on your credit card and were paying a high rate of interest. You then received a​ one-time tax rebate from the government and decided to pay down the balance on your credit card. If there were many others like you in the​ economy, would the tax cut be an effective​ stimulus?

Answers

Answer:

The answer is NO.

Explanation:

The answer is NO since the tax cut does not equate or rather would not be an effective stimulus due to the fact that debt reduction would not stimulate or increase consumption.

To properly understand the narrative of the question and the answer herein, let us define what effective stimulus is.

Effective stimulus or as preferably known as An economic stimulus is the utilization of funds or design of that helps agitate growth during downtime or recession in a country. The decision makers of a country mostly utilize the tactics of giving rebates and  increasing government expenses to name a few.

Now relating it back to the question, since the intention of the rebate is to ease payment on tax does not equate to increase in consumption, the answer is a NO.

Analysts and theorists have debated over the different factors that caused the subprime mortgage meltdown. According to your understanding of the crisis, which of the following factors led to the financial crisis? Check all that apply. a. Home buyers opted for traditional fixed-rate mortgages to avoid any payment delinquency b. Regulations were relaxed, leading to nonqualifying mortgages getting approved for loans. c. Real estate appraisers and rating agencies were lax d. Credit default swaps claimed to insure CDOs.

Answers

Answer:

b. Regulations were relaxed, leading to nonqualifying mortgages getting approved for loans.

c. Real estate appraisers and rating agencies were lax

d. Credit default swaps claimed to insure CDOs.

Explanation:

Home buyers actually never opted for traditional fixed-rate mortgages, since they chose adjustable rate mortgages and optional ARMs, which allowed them to make low coupon payments for the first two years and reset later. Whereas some borrowers didn't understand the payment structure while some thought that the home prices would go up and they would profit through refinancing or sale.

Final answer:

Factors that led to the financial crisis of 2008-2009 include relaxed regulations, lax real estate appraisers and rating agencies, and credit default swaps for CDOs.

Explanation:

The factors that led to the financial crisis of 2008-2009 include:

Relaxed regulations: Regulations were relaxed, allowing nonqualifying mortgages to be approved for loans.Lax real estate appraisers and rating agencies: Real estate appraisers and rating agencies were lax in their evaluations, leading to inaccurate assessments of the risk associated with mortgage-backed securities.Credit default swaps for CDOs: Credit default swaps (CDS) claimed to insure collateralized debt obligations (CDOs), providing a false sense of security in the market.

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year:Beginning EndingRaw materials inventory $ 47,000 $ 50,000Finished goods 58,000 50,000The raw materials used in manufacturing during the year totaled $108,000. Raw materials purchased during the year amount to:_________.

Answers

Answer:

Raw materials purchased = $111,000

Explanation:

given data

                                           Beginning                       Ending

Raw materials inventory     $47,000                        $50,000

Finished goods                     58,000                          50,000

raw materials use manufacturing = $108,000

solution

we get here Raw materials purchased that is express as

Raw materials purchased + beginning raw material = ending Raw materials + Raw materials used    ...................1

put here value and we get

Raw materials purchased = $50,000 + $108,000 - $47,000

Raw materials purchased = $111,000

Given the following​ information, would it be better for Illinois resident Salem Marcos to itemize her sales tax or her state income tax on her federal tax​ return?

Federal taxable income $52,100.00
Federal marginal income tax rate 25%
State taxable income $42,810.00
State income tax rate 3%
Total sales tax paid $1,375.80

Assume that Salem has sufficient itemized deductions to choose itemization method over the standard deduction.

Q1- It would be better for Illinois resident Salem Marcos​to:  ​(Select best answer​ below.)

A.Itemize state income tax.
B.No difference between the two.
C.Itemize sales tax.

Answers

Answer:

C.Itemize sales tax.

Explanation:

Salem Marcos state taxable income is $42,810.00  

State income tax rate is 3%

State income tax = state taxable income * state income tax   rate

=$42,810.00 * 3%  

=$1,284.30  

Total sales tax paid $1,375.80

It would be better to itemize sales tax paid as the amount is higher than state income tax.

Hope this helps!

Final answer:

Calculations show that C. itemizing sales tax would result in greater tax savings for Salem Marcos than itemizing state income tax on her federal tax return since the amount paid for sales tax ($1,375.80) is greater than the state income tax ($1,284.30).

Explanation:

When deciding whether it would be better for Illinois resident Salem Marcos to itemize her sales tax or her state income tax on her federal tax return, one must calculate which deduction provides the greater tax saving. Salem has a state taxable income of $42,810.00 and a state income tax rate of 3%, leading to a state income tax of $1,284.30. Conversely, the total sales tax paid is $1,375.80.

Illinois resident Salem Marcos would benefit more from itemizing her state income tax on her federal tax return based on the deductible expenses.Therefore, based on the numbers given, it would be better to itemize the sales tax, as it is a larger amount and would provide a greater deduction on her federal tax return, assuming Salem has met the criteria to choose itemization over the standard deduction.

Discuss the effectiveness of Red Bull sponsorships, advertisements, personal selling strategies, promotion, events, and public relations. Where should the company draw the line in terms of risk?

Answers

Final answer:

Red Bull's marketing strategies, including sponsorships of extreme sports and personalized promotions, are successful at targeting young adults and establishing a strong brand image. However, the company needs to carefully consider the risks associated with such high-adrenaline activities and balance aggressive marketing with responsible corporate behavior to avoid consumer backlash.

Explanation:

Effectiveness of Red Bull's Marketing Strategies

Red Bull is known for its aggressive and innovative marketing strategies that span multiple channels including sponsorships, advertisements, personal selling, promotions, events, and public relations. The effectiveness of these efforts can be seen in their ability to create a strong brand presence among young adults, who are the main target audience for energy drinks. They sponsor extreme sports events, athletes, and even has a media house to promote their brand, which aligns with their marketing slogan "Red Bull gives you wings." This strategy exemplifies the selling of optimism, where Red Bull associates their product with the exciting lifestyles of extreme sports athletes and adventurers.

Although these high-adrenaline sponsorships can be highly effective, Red Bull must also consider the risks. The company needs to draw the line when these sponsorships and events potentially endanger the lives of participants or convey irresponsible behavior. From a corporate responsibility perspective, they need to ensure that while they celebrate extreme sports and high achievement, they don't inadvertently promote recklessness.

Moreover, the company's advertising and promotion tactics need to remain authentic and respectful of social values, steering clear of over-commercialization that could lead to consumer push-back or a perception of insensitivity, which Naomi Klein critiques in her analysis of branding in No Logo. Ultimately, the balance between aggressive marketing to remain top-of-mind among consumers and maintaining responsible corporate behavior is essential for long-term success.

The comparative statements of Wahlberg Company are presented here:Wahlberg CompanyIncome StatementsFor the Years Ended December 3120202019Net sales $1,890,540$1,750,500Cost of goods sold 1,058,5401,006,000Gross profit 832,000744,500Selling and administrative expenses 500,000479,000Income from operations 332,000265,500Other expenses and losses Interest expense 22,00020,000Income before income taxes 310,000245,500Income tax expense 92,00073,000Net income $218,000$172,500Wahlberg CompanyBalance SheetsDecember 31Assets20202019Current assets Cash $60,100$64,200Debt investments (short-term) 74,00050,000Accounts receivable 117,800102,800Inventory 126,000115,500Total current assets 377,900332,500Plant assets (net) 649,000520,300Total assets $1,026,900$852,800Liabilities and Stockholders’ EquityCurrent liabilities Accounts payable $160,000$145,400Income taxes payable 43,50042,000Total current liabilities 203,500187,400Bonds payable 220,000200,000Total liabilities 423,500387,400Stockholders’ equity Common stock ($5 par) 290,000300,000Retained earnings 313,400165,400Total stockholders’ equity 603,400465,400Total liabilities and stockholders’ equity $1,026,900$852,800All sales were on account. Net cash provided by operating activities for 2019 was $223,000. Capital expenditures were $137,000, and cash dividends were $58,800.Compute the following ratios for 2020. (Round free cash flow to 0 decimal places, e.g. 5,275 and all other answers to 2 decimal places, e.g. 1.83 or 1.83%. Use 365 days for calculation.)(a) Earnings per share (b) Return on common stockholders’ equity (c) Return on assets (d) Current ratio (e) Accounts receivable turnover (f) Average collection period (g) Inventory turnover (h) Days in inventory (i) Times interest earned (j) Asset turnover (k) Debt to assets ratio (l) Free cash flow

Answers

Ratio analysis is the comparative or the relationship analytical tool between two components of the balance sheet and the income statement.

The answers to various parts of the question are as follows:

(a) Earnings per share

[tex]\begin{aligned}\text{Earning per share}&=\frac{\text{Total Earning after tax}}{\text{Number of shares}}\\&=\frac{\$313,400}{58,000}\\&=\$5.4\;\text{per share} \end{aligned}[/tex]

(b) Return on common stockholders’ equity

[tex]\begin{aligned}\text{Return}&=\frac{\text{ Earning Available to ordinary equity }}{\text{Total shareholders equity - preference shares}}\\&=\frac{\$290,000}{\$603,400-\$58,800}\\&=0.53 \end{aligned}[/tex]

(c) Return on assets

[tex]\begin{aligned}\text{Return on Asset} &= \frac{\text{Net income}}{\text{Average Total Asset}}\\&=\frac{\$218,000}{\$513,450}\\&=0.42 \end{aligned}[/tex]

(d) Current ratio

[tex]\begin{aligned}\text{Current Ratio}&=\frac{\text{Current Asset}}{\text{Current Liabilities}}\\&=\frac{\$377,900}{\$203,500}\\&=1.85 \end{aligned}[/tex]

(e) Accounts receivable turnover

[tex]\begin{aligned}\text{Account Receivable Turnover}&=\frac{\text{Annual credit sales}}{\text{Average Account Receivable}}\\&=\frac{\$1,890,540}{\$58,900}\\&=32.09 \end{aligned}[/tex]

(f) Average collection period

[tex]\begin{aligned}\text{Average Collection Period}&=\frac{\text{Average Account Receivable}}{\frac{\text{Annual Sales}}{365}}\\&=\frac{\$58,900}{\frac{\$1,890,540}{365}}\\&=11.37 \end{aligned}[/tex]

(g) Inventory turnover

[tex]\begin{aligned}\text{Inventory Turnover}&=\frac{\text{Cost of good sold}}{\text{Average Inventory}}\\&=\frac{\$1,058,540}{\$63,000}\\&=16.80 \end{aligned}[/tex]

(h) Days in inventory

[tex]\begin{aligned}\text{Days in Inventory}&=\frac{365}{\text{Inventory Turnover}}\\&=\frac{365}{16.80}\\&=21 \end{aligned}[/tex]

(i) Times interest earned

[tex]\begin{aligned}\text{Times interest earned }&=\frac{\text{Income before interest, income taxes}}{\text{Interest expense}}\\&=\frac{\$310,000}{\$92,000}\\&=3.36\end{aligned}[/tex]

(j) Asset turnover

[tex]\begin{aligned}\text{Asset Turnover}&=\frac{\text{Net Sales}}{\text{Average total assets}}\\&=\frac{\$1,890,540}{\$513,450} \\&=3.68\end{aligned}[/tex]

(k) Debt to assets ratio

[tex]\begin{aligned}\text{Debt to Asset Ratio}&=\frac{\text{Total Liabilities}}{\text{Total Asset}}\times100\\&=\frac{\$423,500}{\$1,026,900}\times100\\&=41.20\% \end{aligned}[/tex]

(l) Free cash flow

[tex]\begin{aligned}\text{Fre cash Flow}&=\text{Cash from operating Activities - Capital Expenditure}\\&=\$223,000-\$137,000\\&=\$86,000 \end{aligned}[/tex]

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Final answer:

The provided data from Wahlberg Company is used to compute financial ratios for 2020, which will include earnings per share, return on common stockholders' equity, current ratio, and other key metrics necessary for evaluating the company's financial performance.

Explanation:

The question presents Wahlberg Company's comparative statements for financial analysis and requires the computation of various financial ratios for the year 2020. For calculating ratios like earnings per share, return on common stockholders' equity, and others, you will use the provided income statement and balance sheet data.

For example, to calculate the earnings per share (EPS), divide the net income by the number of shares outstanding. To find the current ratio, divide total current assets by total current liabilities. Ratios like the accounts receivable turnover involve dividing net sales by the average accounts receivable to assess how effectively the company is managing its credit sales.

All these ratios are essential for investors and management to understand the company's operational effectiveness, financial stability, and profitability over the fiscal year.

While personal selling can be an important way to communicate with customers, the problem with the sales orientation toward marketing is that _____________________________.

Answers

Answer:

The correct answer is letter "D": it focuses too much on tactics to get consumers to buy without considering what products consumers might need.

Explanation:

Sales orientation towards marketing implies following a set of steps to get to consumers methodically. The problem with this approach is that sets aside the human side of the customer. It does not focus on what the consumer needs but in how the sale process should be carried out.

In the event of a major disaster, the first goal of the business is to maintain the Answer sustainable level of services for the organization.

Answers

Answer:

The correct word for the blank space is: minimal.

In the event of a major disaster, the first goal of the business is to maintain the (minimal) sustainable level of services for the organization.

Explanation:

Disasters are events of God and as such, they cannot be predicted. In most cases, they affect all the economic activities within the region where it takes place. For a business, it is crucial to at least keep the minimal conditions of its operations after the disaster so the losses for the current period will not affect the firm's sustainability in the long run.

Suppose that the term structure is currently flat so that bonds of all maturities have yields to maturity of 10%. Currently a 5-year coupon bond with annual coupons (with the first one due in 1 year) and face value of S1,000 is selling at par (a) What is the current price of the 5-year bond? What are the annual coupons in dollar terms? (b) A year from now interest rates will depend on the stance of monetary policy. If monetary policy is "tight" the yields to maturity on all bonds will be 12%. If monetary policy is "loose" the yields to maturity on all bonds will be 8%. If you sell the bond a year from now when monetary policy is tight what will be the return to your investment over the year? If you sell the bond a year from now when monetary policy is loose what will be the return to your investment over the year?

Answers

Answer:

Explanation:

a) PV=$1000

As price is equal to face value then the Coupon rate will be equal to its YTM, 10%.

Annual Coupons = 10% * 1000 = $100

b.) We have purchased the bond for $1000, so our investment is $1000

At the end of the year 1, we get a coupon of $100 and the selling price.

1st CASE - When monetary policy is tight.

New YTM = 12%

Time left to maturity (n) = 4 years

Coupon payment = $100

Price = Coupon payment X PVAF(YTM, n) + Face Value X PVF(YTM, n)

[USE TABLES or Financial calculator]

Price = 100 X PVAF(12%, 4) + 1000 X PVF(12%, 4) = 100 X 3.307 + 1000 X .636 = 303.7 + 636 = $939.7

If we sell the bond, Return = (Coupon Received + Selling price - Purchase price ) \div Purchase price

= (100 + 939.7 - 1000) \div 1000 = .0397 or 3.97%

Scenario 2 - When monetory policy is loose

New YTM = 8%

Time left to maturity (n) = 4 years

Coupon payment = $100

Therefore, Price = Coupon payment X PVAF(YTM, n) + Face Value X PVF(YTM, n)

Price = 100 X PVAF(8%, 4) + 1000 X PVF(8%, 4) = 100 X 3.312 + 1000 X .735 = 331.2 + 735 = $1066.2

If we sell the bond, Return = (Coupon Received + Selling price - Purchase price ) \div Purchase price

= (100 + 1066.2 - 1000) \div 1000 = .1662 or 16.62%

Final answer:

The current price of a 5-year coupon bond selling at par with a 10% yield is $1,000, with annual coupons of $100. Returns vary with changes in monetary policy; with 'tight' policy, the yield will fall below par due to higher rates, whereas with 'loose' policy, the yield will increase above par due to lower rates. These scenarios involve capital gains or losses in addition to coupon payments, affecting the total return.

Explanation:

The question pertains to the pricing and yields of a 5-year coupon bond in a flat term structure market where all maturities have yields of 10%. The current price of a bond selling at par with a face value of $1,000 is, by definition, $1,000. To determine the annual coupons, we can use the yield to maturity (YTM) which is given as 10%. Using this yield and the par value, the annual coupon payment can be calculated by multiplying the par value by the YTM. Therefore, the annual coupon payment in dollar terms is $100 (10% of $1,000).

If monetary policy is tight and yields rise to 12% after one year, the bond price will typically decrease. Conversely, if policy is loose and yields fall to 8%, the bond price will increase. If sold after one year when policy is tight, the return on investment would include the received coupon payment and the capital loss due to the increased discount rate. When policy is loose, the return would include the received coupon payment and the capital gain from the decreased discount rate. This demonstrates that the yield, or total return, reflects interest payments and capital gains or losses depending on interest rate movement.

Businesses that operate on the Web must comply with the same laws and regulations that govern the operations of all businesses.A. TrueB. False

Answers

Answer:

True

Explanation:

Businesses operating on the web are entities that do their business transactions with their customers through the internet. They have no geographical limitation as they can reach their customers and potential customers via the web.

All businesses, whether on the web or on a specific geographical location

have the same goal of operating with the aim of making profit. therefore, they must work within the same legal framework.

a profit, that  their are expected to operate

Answer:

B. False

Explanation:

it is the answer on ed 2020

You have a client who needs a QuickBooks Online solution that includes tracking for sales and sales tax.
Any subscription level, including QuickBooks Self-Employed

Answers

Final answer:

QuickBooks Online offers a solution for tracking sales and sales tax with various subscription levels. You can track sales using the sales receipt feature and calculate and record sales tax with built-in tools.

Explanation:QuickBooks Online Solution for Tracking Sales and Sales Tax

QuickBooks Online offers a variety of subscription levels, including QuickBooks Self-Employed, that can meet the needs of your client. With QuickBooks Online, you can easily track sales and sales tax.

To track sales, you can use the sales receipt feature in QuickBooks Online. This allows you to record the details of each sale, such as the customer, item sold, quantity, and price. You can also generate reports to analyze your sales data.

For sales tax tracking, QuickBooks Online offers built-in tools to help you accurately calculate and record sales tax. You can set up sales tax rates based on your business location and apply them to each sales transaction. The system will automatically calculate the sales tax amount and generate reports to help you with your sales tax returns.

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Purchase investment in bonds for $115,000. Sell land costing $40,000 for only $31,000, resulting in a $9,000 loss on sale of land. Purchase $70,000 in equipment by issuing a $70,000 long-term note payable to the seller. No cash is exchanged in the transaction. Declare and pay a cash dividend of $30,000. Required Prepare the statement of cash flows using the indirect method.

Answers

Answer:

net cash flow  26,800

Explanation:

NOTE: missing information attached.

Operating

net income                 104,000

removal of non-monetary terms

depreciation expense 37,000

loss on sale of land       9,000

adjusted net income        150,000

Changes in working capital:

Increase in AR                  (22,000)

Decrease in Inventory       40,000

Prepaid increase                 (7,200)

Decrease in AP                 (16,000)

decrease interest paayble (5,000)

increase in tax payable         1,000

net change in working capital     (9,200)

net cash generated from operating     140,800

investing

sale of land 31,000

purchase of debt securities (115,000)

cash used in investing activities 84,000

financing

cash dividends (30,000)

cash used in financing activites 30,000

net cash flow  26,800

beginning cash 227,800

ending cash 254,600

Final answer:

To prepare the statement of cash flows using the indirect method, analyze the cash flows from operating, investing, and financing activities and make adjustments as necessary.

Explanation:

To prepare the statement of cash flows using the indirect method, we need to analyze the cash flows from various activities. Here is a step-by-step approach:

Operating Activities: Start with net income and adjust for non-cash items (such as depreciation) and changes in working capital (such as accounts receivable and accounts payable).Investing Activities: Include the purchase and sale of investments like bonds, as well as the purchase or sale of property, plant, and equipment.Financing Activities: Include changes in long-term liabilities, such as issuing or repaying debt, and payments of dividends.

Once you have calculated the cash flows from these activities, you can summarize them to prepare the statement of cash flows.

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During 2014, Raines Umbrella Corp. had sales of $790,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $85,000, and $190,000, respectively. In addition, the company had an interest expense of $52,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.)
a. What is Raines’s net income for 2014? (Do not round intermediate calculations. Input the amount as a positive value.) $
b. What is the company's operating cash flow? (Do not round intermediate calculations.) Operating cash flow $

Answers

Answer:

(a) -$147,000

(b) $95,000

Explanation:

(a) EBIT:

= Sales - Cost of goods sold - Administrative and selling expenses - Depreciation expense

= $790,000 - $610,000 - $85,000 - $190,000

= -$95,000

EBT = EBIT - Interest expense

       = -$95,000 -  $52,000

       = -$147,000

Net Income = EBT - Tax expense

                    = -$147,000 - $0

                    = -$147,000

(b) company's operating cash flow:

= EBIT + Depreciation Expense

= -$95,000 + $190,000

= $95,000

Final answer:

Raines's net income for 2014 is a loss of $147,000. The operating cash flow, however, is positive at $43,000.

Explanation:

Firstly, to calculate Raines's net income for 2014, you deduct all the expenses from the sales. Here's how you go about it: Sales ($790,000) - Cost of goods sold ($610,000) - Administrative and selling expenses ($85,000) - Depreciation expenses ($190,000) = $-95,000. Then subtract the interest expense which is $52,000. This gives a pre-tax income of $-147,000. Since the pre-tax income is a loss, the company doesn’t owe any taxes so the tax payment is $0. Hence, Raines's net income for 2014 = Pre-tax income + Tax payment = $-147,000 + $0 = $-147,000.

Secondly, Raines's operating cash flow can be calculated by adding back the non-cash expense (depreciation) to the net income. So, Operating cash flow = Net income + Depreciation = $-147,000 + $190,000 = $43,000.

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the relationship between the strategic planning process and portfolio management in an organization ______

Answers

Answer:

Explained below:

Explanation:

The Strategic Planning process is a planning process performed by the top-level management, to decide where the organization is willing to reach in the coming day and Portfolio management is the act of building and maintaining an appropriate investment mix for given risk tolerance.

Portfolio management in an organization is closely associated with each other as when the organization requires to do investment, it necessity be done through the  Strategic Planning process which is performed by the top-level management to minimize the risk.

Final answer:

The relationship between strategic planning and portfolio management in an organization involves strategic planning outlining the overall goals and portfolio management making decisions about investments based on these goals.

Explanation:

The relationship between strategic planning and portfolio management in an organization is an intricate one. Strategic planning is the process in which an organization outlines its overall goals for the future and how it aims to achieve them. It includes outlining missions, objectives, executing operational plans, and monitoring progress.

On the other hand, portfolio management involves making decisions about investment mix and policy, asset allocation for individuals and institutions, and balancing risk against performance. Effectively, portfolio management is about making decisions relevant to investment in business endeavors.

So, where do these two intersect? Essentially, decisions made in the strategic planning process dictate the direction of portfolio management. For example, if an organization's strategic plan includes expanding into new markets, the portfolio management would then involve researching, analyzing, and investing in those new markets.

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The interest and dividends paid by a corporation are considered to be deductible operating expenses, hence they decrease the firm's tax liability.True or false?

Answers

Answer:

The correct answer is false

Explanation:

Interest payment is an expense incurred by a business as a cost of borrowing money to finance the  business. It is an allowable expense for tax purposes. Hence it is deducted from revenue before tax liability is computed.

Interest expense is a tax shield as it helps the business to reduce its tax liability.

Dividends are portion of a company profit paid to shareholders. Dividends are paid from profit after tax. Therefore cannot be used to reduce tax liability.

The correct answer is false

Alyssa: Thanks to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days. Tim: Indeed, it's gotten crazy! A government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets. Alyssa: I don't know about that. Without a bailout of severely distressed financial firms, the economy will experience a deep recession.

Answers

The correct answer is; They are having differences in scientific judgments.

Further Explanation:

Upon researching this question, I found a crucial part that was left off. The question asked why were Alyssa and Tim having a disagreement. The disagreement was over each of their personal scientific judgments.

Both have learned different things in their area of expertise and disagree on the economy. They can resolve this issue by both researching the topics together and coming to a mutual understanding of the bailouts and free markets.

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Final answer:

Government bailouts are necessary interventions to prevent economic collapse, as seen in the $700 billion acquisition of mortgage-backed securities during the 2008 crisis. However, they also lead to consequences such as smaller bank failures and the criticism of socialistic measures, while raising debates on the efficacy of free market corrections in times of crisis.

Explanation:

Understanding Government Bailouts and Their Implications

During financial crises, government bailouts of financial institutions become a contentious topic, sparking debates about market functions and economic interventions. The actions taken by the Federal Reserve, Congress, and the president aimed to prevent a complete collapse of the financial sector that could lead to an economic downturn similar to the Great Depression. Despite these efforts, a severe recession and global economic slowdown followed. The acquisition of $700 billion worth of mortgage-backed securities in 2008 by the government was a pivotal decision reflecting the 'too big to fail' notion asserted by many economists.

The bailout led to consequences such as the collapse of smaller banks, criticisms regarding the socialistic nature of the bailouts, and further economic challenges. With the U.S. being the world's leading consumer, its recession had a domino effect on global economies, prompting trading partners to also enter into recessions or experience slowed growth. Many European countries provided financial assistance to their financial markets, and later faced challenges with high deficits leading them to adopt austerity measures. These included countries like Greece, Ireland, Spain, and Portugal, which were significantly impacted and had to enforce strict economic policies.

Nonetheless, the necessity of bailouts for maintaining economic stability is evident as financial markets are critical in bridging the gap between demanders and suppliers of financial capital. Without functioning financial institutions and markets, economies struggle to invest in new financial capital, leading to deepened economic difficulties. The ongoing debate over bailouts and free market responses reflects the complex nature of modern economies transitioning toward market capitalism, and the struggle to balance intervention with market dynamics.

Listed below are costs found in various organizations.
For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product.
1. Direct labor
2. Executive salaries
3. Factory rent
4. Property taxes, factory.
5. Boxes used for packaging detergent produced by the company
6. Salespersons' commissions
7. Supervisor's salary, factory
8. Depreciation, executive autos.
9. Wages of workers assembling computers
10. Insurance, finished goods warehouses
11. Lubricants for production equipment.
12. Advertising costs
13. Microchips used in producing calculators.

Answers

The following are the costs incurred and their types:

1. Direct labor - Fixed - manufacturing cost 2. Executive salaries - Fixed - administrative cost 3. Factory rent - Fixed - administrative cost 4. Property taxes, factory - Fixed - administrative cost 5. Boxes used for packaging detergent produced by the company - Variable - manufacturing cost 6. Salespersons' commissions - Variable - selling cost  7. Supervisor's salary, factory - Fixed - administrative cost 8. Depreciation, executive autos - Variable -  9. Wages of workers assembling computers - Variable - administrative cost 10. Insurance, finished goods warehouses - Variable - administrative cost 11. Lubricants for production equipment - Variable - administrative cost 12. Advertising costs - Variable - selling cost  13. Microchips used in producing calculators - Variable - manufacturing cost

What are primary and secondary markets?

Answers

Answer:

Explanation:

The primary market is the market in which the new securities like bonds, stocks, etc are offered to the general public for the first time or we can say Initial public offer.

The initial public offer is an example of the primary market .

On the other hand, the secondary market is that market in which the securities are purchased or sold through the investors after offering to the general public.  

Example - New York Stock Exchange (NYSE), etc.

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