Answer:
$759,000
Explanation:
Given that,
New stock issues = $1.9 million
Dividend paid in cash during the year = $281,000
The net cash flow provided by financing activities is:
= Million new stock issue increase in cash - Cash dividend decrease in cash + Increase in cash - Decrease in cash
= $1,900,000 - $281,000 + $1,590,000 - $2,450,000
= $759,000
Parke-Bernet Galleries, acting as agent for an undisclosed principal, sold a painting to Weisz. Weisz laterdiscovered that the painting was a forgery and sued Parke-Bernet for breach of contract. In defense, Parke-Bernet argued that as a general rule, agents are not liable on contracts made for principals. Is this a gooddefense? Explain.
Answer:No, this is not a good defense
Explanation:
An agent is a person acting on behalf of a principal as regards contract relationship for which the principal will be liable provided the agent adhere to.
Disclosure of principal The identity of the principal must be fully disclosed at the time of contract.
The non disclosure of the principal will make the contracting party believe he his dealing with the agent and for any breach thereon the agent will be liable.
In the above scenario the principal was not disclose and this makes Parke Bennet liable.
Coke and Pepsi battle it out
Until 2004, Pepsi was sold in the Gulf, but notCoca-Cola. Today, Pepsi is fighting to keep its dominant position in the Middle East. Coca-Cola and Pepsi have avoided a price war and have entered into a "display marketing" war. Each copies theother's promotions and tries to do even better. Coca-Cola and Pepsi are at each other's throats, and that's good news for everyone.
AME Info,
April
8, 2004
Describe the game that Coca-Cola and PepsiCo play in the Middle East.
Why is it "good news for everyone" in the MiddleEast?
Coca-Cola and Pepsi are playing _______ game.
A.
an advertising
B.
a research
C.
a price
D.
an efficient
The game ______ good news for people in the Middle East because ______.
A.
is;
Coca-Cola and Pepsi have a reputation for producing interesting and dynamic advertising campaigns
B.
is not;
Coca-Cola and Pepsi will pass on their additional marketing costs to the consumers
C.
is not;
any game that an oligopoly plays always results in higher prices for the consumers
D.
is;
they have more information about the products and the increased promotions give the consumers deals they otherwise would not have experienced
Answer:1. Advertising
2. D. They have more information about the product and the increased promotions give the consumers deals they otherwise would not have experienced.
Explanation:
The war between Pepsi and Coca- Cola is an advertisement war in which each is trying to gain the consumers patronage by proving the superiority of their product over others. It has nothing to do with research, price nor efficiency.
The advertisement provides more information on the product to the consumers and promotion offer like free gift which they hitherto would not have enjoyed.
Marketing or advertising cost are not passed to consumers and the advertisement been interesting adds little or no value to the consumers.
At the beginning of 2017, investors had invested $25,000 of common equity in Grant Corp. and expect to earn a return of 11% per year. In addition, investors expect Grant Corp. to pay out 100% of income in dividends each year. Forecasts of Grant's net income are as follows: 2017: $3,500 2018: $3,200 2019: $2,900 2020 and beyond: $2,750 (no growth) Use this information to compute Grant Corp.'s expected residual income for the year 2017?
Answer:
$750.
Explanation:
By Capital assets Pricing Model,
Equity Charge:
= Equity Capital × Cost of Equity
= 25,000 × 0.11
= $ 2750
If in year 2017, Net income = $ 3500,
then Residual income = Net income - Equity Charge
= 3500 - 2750
= $750.
Since residual income is positive, Its profitable and growth venture from a shareholder's perspective.
Suppose Presented below is 2022 information for for PepsiCo, Inc. and The Coca-Cola Company. ($ in millions)
PepsiCo Coca-Cola
Net cash provided by operating activities $7,296 $7,893
Average current liabilities 7,906 13,159
Net income 5,581 6,858
Sales revenue 40,232 28,244
Capital expenditures 2,112 1,800
Dividends paid 2,605 3,928
Required:
1. Compute free cash flow for both companies and compare.
Answer:
$2,579; $2,165
Pepsi Co.
Explanation:
Pepsi Co
Free cash flows:
= Cash provided by operating activities - Capital expenditures - dividends
= $7,296 - $2,112 - $2,605
= $2,579
Coca-Cola
Free cash flows:
= Cash provided by operating activities - Capital expenditures - Dividends
= $7,893 - $1,800 - $3,928
= $2,165
By the comparing the cash flows of these two companies, we have found that Pepsi company has the higher free cash flows.
Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget. a. Beginning cash balance on June 1, $94,000. b. Cash receipts from sales, $413,000. c. Budgeted cash disbursements for purchases, $268,000. d. Budgeted cash disbursements for salaries, $95,000. e. Other budgeted cash expenses, $57,000. f. Cash repayment of bank loan, $32,000. g. Budgeted depreciation expense, $34,000.
To calculate the ending cash balance, subtract the total cash disbursements from the sum of the beginning balance and cash receipts. Depreciation expense is ignored as it is not a cash item. The ending cash balance for June 30 is $55,000.
To determine the ending cash balance to be reported on the month-ended June 30 cash budget, we start with the beginning cash balance and adjust for cash inflows and outflows throughout the month. Here's a step-by-step calculation:
Beginning cash balance: $94,000Plus cash receipts from sales: +$413,000Less budgeted cash disbursements for purchases: -$268,000Less budgeted cash disbursements for salaries: -$95,000Less other budgeted cash expenses: -$57,000Less cash repayment of bank loan: -$32,000Ignore budgeted depreciation expense since it is a non-cash item.Now, we calculate the ending balance:
End Balance = Begin Balance + Cash Inflows - Cash Outflows
End Balance = $94,000 + $413,000 - ($268,000 + $95,000 + $57,000 + $32,000)
End Balance = $94,000 + $413,000 - $452,000
End Balance = $507,000 - $452,000
End Balance = $55,000
The ending cash balance to be reported on the June 30 cash budget is $55,000.
The return on a 10 percent coupon bond that initially sells for $1,000 and sells for $900 one year later is?
The following information pertains to the Frameworks Corporation for May. Calculate the cost of goods sold for the period:Beginning Finished Goods Inventory $19,500Ending Finished Goods Inventory$18,000Cost of Goods Manufactured $126,800A. $126,800.B. $125,300.C. $146,300.D. $128,300.E. $164,300.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Beginning Finished Goods Inventory $19,500
Ending Finished Goods Inventory$18,000
Cost of Goods Manufactured $126,800
To calculate the cost of goods sold we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 19,500 + 126,800 - 18,000= $128,300
In most cases, what is the most expensive promotion tool?
A) advertisingB) personal sellingC) mass mediaD) public relationsE) publicity
Answer: (B) Personal selling
Explanation:
The person selling is basically refers to the two-way communication process in which we sell our products and the services face to face to the customer.
The personal selling is also known as the interaction form of selling the products to the user.
The personal selling is one of the most expensive promotion tool as it is hardly used for advertising the products. It mainly involve spreading the information regarding the specific organization products and the services.
Therefore, Option (B) is correct.
Baldwin’s product Bold has material costs that are rising from $6.80 to $7.80. Assume that period costs and other labor costs remain unchanged. If Baldwin decides to absorb the cost and not pass any on to its customers in the form of raised prices how many units of product Bold would need to be sold next round to break even on the product?
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
In the long run, firms under monopolistic competition_____ A. Standardize their products. B. Face perfectly elastic demand curves. C. Earn zero economic profit. D. Produce output at minimum average cost.
Answer:
The correct answer is letter "C": Earn zero economic profit.
Explanation:
For markets that have many companies offering similar products or services, monopolistic competition exists. Restaurants, grocery stores, and clothing stores, for example. Such similar products or services are not ideal replacements for each other in monopolistic competition. In the short run, the economic profit of the firms is positive but in the long run, the economic profit approaches to zero.
The quantity demanded x (in units of a hundred) of the Mikado miniature cameras per week is related to the unit price p (in dollars) by p = −0.2x2 + 220 and the quantity x (in units of a hundred) that the supplier is willing to make available in the market is related to the unit price p (in dollars) by p = 0.1x2 + 8x + 110. If the market price is set at the equilibrium price, find the consumers' surplus and the producers' surplus. (Round your answers to the nearest dollar.)'
To determine the consumer surplus and producer surplus at the market's equilibrium price for Mikado miniature cameras, one must first find the equilibrium by setting the demand equation equal to the supply equation. Then, using the concepts of consumer and producer surplus in economic graphs, calculate the areas below the demand curve and above the supply curve to find the respective surpluses.
Explanation:The student has asked to find the consumer surplus and the producer surplus at the equilibrium price for Mikado miniature cameras. The equilibrium price is the point where the quantity demanded equals the quantity supplied, which can be found by equating the two given equations:
For demand: p = −0.2x² + 220
For supply: p = 0.1x² + 8x + 110
Once the equilibrium price and quantity are found, the consumer surplus is the area below the demand curve and above the market price while the producer surplus is the area above the supply curve and below the market price. These areas form triangular regions on the graph of demand and supply.
Some years ago, the three leading aluminum producers in the U.S. changed prices nine times by exactly the same amount each time and usually within one to three days of the initial price increase. This is an example of _____. Group of answer choices sequential pricing price leadership price discrimination tacit collusion price fixing
Answer:
Price leadership.
Explanation:
Price leadership occurs when a pre-eminent firm (the price leader) sets the price of goods or services in its market. The leading Aluminium producer determine and control the prices leaving the other producer no choice than to follow them.
Siebel Incorporated, a non-publicly traded company, has 2009 after-tax earnings of $25 million, which are expected to grow at 6 percent annually into the foreseeable future. The firm is debt-free, capital spending equals the firm's rate of depreciation; and the annual change in working capital is expected to be minimal. The firm's beta is estimated to be 2.5, the 10-year Treasury bond is 5 percent, and the historical risk premium of stocks over the risk-free rate is 6.0 percent. Publicly-traded Rand Technology, a direct competitor of Siebel's, was sold recently at a purchase price of 10 times its 2009 after-tax earnings, which included a 25 percent premium over its current market price. Aware of the premium paid for the purchase of Rand, Siebel's equity owners would like to determine what it might be worth if they were to attempt to sell the firm in the near future. They chose to value the firm using the discounted cash flow and comparable recent transactions methods. They believe that either method provides an equally valid. Estimate of the firm's value.
a What is the value of Siebel using the DCF method?
b What is the value using the comparable recent transactions method?
c What would be the value of the firm if we combine the results of both methods?
Answer:
Answer of each requirement is given seperatly below.
a What is the value of Siebel using the DCF method?
Value under DCF = CF * (1+growth rate)/ (WAAC" -Growth rate)
Putting values (assuming after tax earning is all in cash)
Value of SI = 25 (1+6%)/ 20%-6% = 189 million dollars
"WAAC calculation
Here WAAC is equal to cost of equity (ke) as company is debt free.
so
Ke = risk free rate + beta (risk premium)
= 5 + 2.5 (6) = 20%
b What is the value using the comparable recent transactions method?
Based on recent tansaction the value of siebel incorporated will be calculated as shown below
Value of SI = Profit afte * 10 = 25 * 10 = 250 million dollars
Publicly-traded Rand Technology, a direct competitor of Siebel's sale is taken as bench mark.
c What would be the value of the firm if we combine the results of both methods?
By combining value of both value technique we get 189 + 250 = 439 million dollars.
Using the DCF method, Siebel is valued at $185.2 million. Using the comparable transactions method, Siebel is valued at $250 million. Averaging these values, Siebel's value is $217.6 million.
Explanation:a)
Discounted Cash Flow (DCF) method
: This method relies on forecasting how much cash flow the company will generate in the future and then, using an expected rate of return, calculating how much that cash flow is worth. The rate of return is calculated using the Capital Asset Pricing Model (CAPM), where the required rate of return equals the rate on a risk-free security plus a risk premium. Given Siebel's beta of 2.5, the 10-year Treasury bond rate of 5 percent, and the historical risk premium of 6 percent, the required rate of return for Siebel's equity is 20 percent (5% + 2.5×6%). Assuming constant growth of 6%, the DCF value is the earnings divided by (rate of return - growth rate) or $25million / (20% - 6%) = $185.2 million.
b) Comparable recent transactions method: This method involves valuing a company based on the sale price of a similar company in a similar industry. In this case, Rand Technology was sold at 10 times its after-tax earnings (including a 25% premium). Therefore, Siebel would be valued at 10 times its earnings of $25 million, equal to $250 million.
c) If we take the average of these two methods, we get a valuation for Siebel of $217.6 million (($185.2 million + $250 million) / 2).
https://brainly.com/question/13739090
#SPJ3
What can a manager do when employee personalities are considered?
Explanation:
The work environment is made up of different personality types.
Knowing how to recognize them is extremely important for a manager to better address the strengths and weaknesses of each employee's personality type.
A good manager must know how to understand each individual's individual differences and respect them so that there is good integration between the teams, which are made up of different people with different personalities who still come together to achieve results for the company.
This is why managers need to be able to recognize their team's core motivations and values, so that their decisions are based primarily on their individuality and ethical principles.
The Commission on Sustainable Development Select one:
a. ensures the high visibility of sustainable development issues within the U.N. system.
b. uses sustainable development tactics to stop the use of ozone-depleting chemicals.
c. identifies existing problems that can be corrected to protect human health and welfare.
d. came into effect as the result of the Exxon Valdez oil spill.
Answer:
C
Explanation:
The commission on sustainable development overseas the development in all aspects of human health and welfare
On November 18, 2018, equipment is stolen from ABC manufacturing. ABC purchased the equipment for $100,000 and its adjusted basis is $0. The insurance company paid ABC $20,000 for its loss on January 6, 2019. How long does ABC have to purchase qualified replacement property and how much must it reinvest to avoid recognizing its gain?
Answer:
The answer is - December 31, 2020 and $20,000 respectively
Explanation:
The gain from an involuntary conversion of tax payer's property may be deferred if the property is replaced within the staturory time limit established by law
Time limilt is 2 years for Destruction or theft of property resulting in insurance recovery
The time starts when the insurance/government proceeds are received
ABC have to reinvest by December 31, 2020 as the proceeds are received on January 6, 2018
Gain of 20,000 which is insurance proceeds received less basis(20,000 - 0) has to be reinvetsed
The answer is - December 31, 2020 and $20,000 respectively
A 90-day note dated August 26 matures on which of the following dates?
A. November 23
B. November 24
C. November 25
D. November 26
Answer:
B. November 24
Explanation:
The computation of the number of days is shown below:
= 5 days in August month+ 30 days in September month + 31 days in October month + 24 days in November month
It covers the 90 days from August to November month
The maturity date is that date on which the note is matures
And, the 5 days comes from 31 days in august - 26 days in august month
Wellington Corp. has outstanding accounts receivable totaling $3 million as of December 31 and sales on credit during the year of $15 million. There is also a debit balance of $12,000 in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense? $1, 200,000. $ 228,000. $ 240,000. $ 252,000.
Final answer:
The balance in the allowance for doubtful accounts after the year-end adjustment for Wellington Corp. will be $252,000. This calculation accounts for an 8% estimate of uncollectible accounts receivable and an existing $12,000 debit balance in the allowance account.
Explanation:
The student is asking about the adjustment of the allowance for doubtful accounts in accordance with accounting principles. Wellington Corp. has outstanding accounts receivable totaling $3 million and estimates that 8% of these receivables will be uncollectible. The existing debit balance in the allowance for doubtful accounts is $12,000. To compute the adjusted balance in the allowance account, multiply the total accounts receivable by the uncollectible percentage rate, which is:
$3,000,000 * 8% = $240,000
Now, since there is a debit balance of $12,000 already in the allowance account, we need to add this amount to the estimated uncollectibles to find the year-end balance for the allowance for doubtful accounts:
$240,000 + $12,000 = $252,000
Therefore, after recording the bad debt expense, the balance in the allowance for doubtful accounts would be $252,000.
If Investment Spending does not replace Consumption of Fixed Capital (CFC), then GDP will _________..
Answer: Decrease
Explanation:
GDP = gross domestic product. The number of goods and services produced and consumed within a country.
The major components also include investment spending and consumption.
If investment spending does not replace consumption of fixed capital then GDP will fall or decline. Investment spending needs to be replaced by consumption of fixed capital so that the GDP can increase. Which is beneficial for the economy.
According to surveys in the U.S. and the United Kingdom, what are the most frequently used financial performance measures by multinational organizations?
A. Stock price, return on investment, profit
B. Budgeted profit vs. actual profit, stock price, sales
C. Budgeted profit vs. actual profit, return on investment, profit
D. Internal rate of return, profit, return on investment
Answer:
Correct answer is (C)
Explanation:
Budgeted profit vs. actual profit, return on investment, profit
Complete the sentence. The principle of minimum differentiation suggests that political parties will _______.
A. offer few ideas on minimizing the size of government
B. tend to have few new ideas as an election approaches
C. have few ideas in common in their platforms
D. tend to become similar as they try to appeal to a majority of voters
Answer:
D. tend to become similar as they try to appeal to a majority of voters
Explanation:
The principle of minimum differentiation suggests that political parties will tend to become similar as they try to appeal to a majority of voters. The idea of minimum differentiation is to appeal a maximum number of voters.
On a reset date, floating-rate notes:
Multiple Choice:
O experience very volatile price changes.
O market price will usually gravitate toward par.
O market price will usually gravitate toward par, unless the borrowers’ credit rating has declined.
O none of the options
Answer:
The correct answer is letter "B" and "C": market price will usually gravitate toward par; market price will usually gravitate toward par, unless the borrowers’ credit rating has declined.
Explanation:
A floating-rate note is a debt instrument with an interest rate that floats or varies. They are also called floaters. Financial institutions and governments typically issue floaters. Floaters can protect investors because they gain more when interest rates rise, unlike fixed-rate bonds which lose value when rates rise. Then, it is said that the market price will gravitate towards par unless the borrower's credit rating declines.
A consumer buying cooperative tested the effective heating area of 20 different electric space heaters with different wattages. Here are the results. Heater Wattage Area 1 1,500 131 2 1,500 142 3 750 111 4 1,500 264 5 1,250 237 6 1,750 267 7 1,500 61 8 2,000 135 9 2,000 263 10 2,000 263 11 750 125 12 1,500 76 13 2,000 77 14 750 170 15 1,000 165 16 1,000 152 17 1,000 238 18 1,750 209 19 1,250 167 20 1,750 75
Answer:
Using following equation
Q=KDT/Dx
DT=25
K=9.97
Dx=5
The heat transfer will be
Q=48.989 W
Use the following method to calculate the yearly depreciation allowances and book values for a firm that has purchased $150,000 worth of office equipment that qualifies as depreciation property. The equipment is estimated to have a salvage (market) value of $30,000 (20% of the original cost) after the end of its 10-year depreciable life.
a. Straight line
b. MACRS
c. Sum-of-Years' Digits
Answer:
a. Straight Line Method Depreciation= $ 2400
b. MACRS
c. Sum-of-Years' Digits
Explanation:
a. Straight Line Method Depreciation=
Purchase Cost- Salvage Value/ No of useful life *depreciation rate
=$ 150,000- $30,000/10 * 20%
=120,000/10* 20%= 12000* 20/100=$ 2400
b. MACRS
Since it is a non-form 10-year property, the company can elect to use either the 150% or 200% declining balance method.
Depreciation in 1st Year = Cost × 1/Useful Life × A × Depreciation Convention
Depreciation in Subsequent Years =
(Cost − Depreciation in Previous Years) × 1/ Recovery Period × A
Where,
A is 100% or 150% or 200%.
Depreciation for the the first year $ 150,000/10 *200%= $30,000
Depreciation for the the 2nd year =$ 150,000-30,000/10 *200%= $24,000
Depreciation for the the third year =$ 150,000-30,000- 24000/10 *200%
=$ 19,200
Depreciation for the the 4th year $ 150,000-30,000-24000-19200/10 *200%= Note A
Note A: MACRS declining balance changes to straight-line method when that method provides an equal or greater deduction. Deduction under 200% declining balance MACRS for 4th year would be $ 153,600 ($150000 - $30,000 - $24000 - $19200 × 1/10 × 200%. This is greater than depreciation under straight line method .
c. Sum-of-Years' Digits Method Depreciation
Depreciation Amount = Acquisition Cost - Salvage Value = $ 120,000
Sum of useful life= 10+9+8+7+6+5+4+3+2+1= 55
Depreciation Factor = 10/55, 9/55, 8/55, 7/55 etc.
Depreciation for the 1st year= 10/55* 120,000= $ 21,818.2
Depreciation for the 2nd year= 9/55* 120,000= $ 19 636.4
Depreciation for the 3rd year= 8/55* 120,000= $17,546
Depreciation for the 4th year= 7/55* 120,000= $ 15,273
Depreciation for the 5th year= 6/55* 120,000= $ 13,091
Depreciation for the 6th year= 5/55* 120,000= $ 10,909.1
Depreciation for the 7th year= 4/55* 120,000= $ 8727.3
Depreciation for the 8th year= 3/55* 120,000= $ 6545.5
Depreciation for the 9th year= 2/55* 120,000= $4363.63
Depreciation for the 10th year= 1/55* 120,000= $ 2181.81
Market surveys conducted by car companies show that people who buy battery-powered cars are very concerned about pollution and its long term impact on the environment. The same surveys show that people with battery-powered cars, compared to others, are more likely to use energy-saving appliances at home. Thus, car companies emphasize the environmentalb potential buyers who are concerned about the environment. Which of the following statements best expresses the main conclusion of the above argument? 1. Ads for battery-powered cars target those who are concerned about the environment 2. More people are concerned about the environment today than in the past. 3. Primary buyers of battery-powered cars are those concerned with the environment.
Answer:
The statement that best expresses the main conclusion of the argument is:
Primary buyers of battery-powered cars are those concerned with the environment.
Explanation:
From the surveys, we can see that the people that buy battery-powered cars are concerned about the long-term effect of pollution on the environment.
We can also see that these people are more likely to use energy-saving appliances at home and people that use other cars.
These statements show that the people more likely to buy battery-powered cars are concerned with the environment.
Alpine Corporation reported the following information for fiscal 2017 and 2016.
December 31 | 2017 | 2016
Operating assets | $164,101 | $153,211
Operating liabilities | 120,785 | 114,836
Net cash flow from operations | 46,709 | 39,540
Net operating profit after tax (NOPAT) | 33,371 | 31,742
Discount factor | 6.0% | 6.0%
What are the company's free cash flows to the firm (FCFF) for 2017?
Answer:
$28,430
Explanation:
We have that FCFF = Net operating profit after tax (NOPAT) - change in net operating assets (NOA)
But NOA = Operating assets - Operating liabilities
2016 NOA = $153,211 - $114,836 = $38,375
2017 NOA = $164,101 - $120,785 = $43,316
Hence, the company's free cash flows to the firm (FCFF) for 2017 is
FCFF = $33,371 - ($43,316 - $38,375) = $28,430
In 2009, Mercury Marine, an outboard motor manufacturer, threatened to close their plant in Fond du Lac, WI and move to a nonunionized location in Oklahoma. This threat caused the union workers to vote to accept a contract with major concessions, including a 30% decrease in pay for newly hired workers and workers returning from layoff. This strategy could best be described as a:
Answer:
The correct answer is: forcing strategy.
Explanation:
A forcing strategy is used by employers through different coercive actions that disfavor workers. This is done to push employees to have a response on a specific matter usually when it comes to diminishing their compensations. A forcing strategy is a win-lose approach that does nothing more than promoting distrust among the work-frame.
"The strategy employed by Mercury Marine can best be described as a form of union busting, specifically using the threat of plant closure or relocation to coerce union workers into accepting less favorable contract terms. This tactic is often referred to as a ""runaway shop"" strategy.
In labor relations, a runaway shop occurs when a company shifts its operations to a new location, often to reduce labor costs by moving to an area with lower wages, weaker labor unions, or more favorable labor laws.
By threatening to move to a nonunionized location in Oklahoma, Mercury Marine was leveraging the fear of job loss among its union workers in Fond du Lac, WI to compel them to agree to significant concessions, including a substantial decrease in pay for new hires and workers coming back from layoff.
This strategy is controversial because it pits workers against each other and against the company's economic interests.
It undermines the collective bargaining power of unions by creating a divide between current workers, who may be fighting to maintain their wages and benefits, and potential future workers, who are offered significantly lower compensation. The long-term impact can weaken the union's position and potentially lead to the erosion of labor standards and worker protections.
In summary, the strategy used by Mercury Marine is a union-busting tactic known as a runaway shop, which involves threatening to relocate operations to force union workers to accept reduced wages and benefits. This approach exploits workers' concerns about job security to achieve company cost-saving objectives at the expense of labor rights and solidarity."
Paula Boothe, president of the Indigo Corporation, has mandated a minimum 10% return on investment for any project undertaken by the company. Given the company’s decentralization, Paula leaves all investment decisions to the divisional managers as long as they anticipate a minimum rate of return of at least 10%. The Energy Drinks division, under the direction of manager Martin Koch, has achieved a 13% return on investment for the past three years. This year is not expected to be different from the past three. Koch has just received a proposal to invest $1,800,000 in a new line of energy drinks that is expected to generate $234,000 in operating income.
Calculate the residual income for the proposed new line of energy drinks.
Answer:
$54,000
Explanation:
The computation of the residual income is shown below:
= Operating income - minimum return
where,
operating income = $234,000
And, the minimum return equal to
= Invested asset amount × minimum rate of return
= $1,800,000 × 10%
= $180,000
Now put these values to the above formula
So, the value would equal to
= $234,000 - $180,000
= $54,000
Portions of the financial statements for Software Associates are provided below. SOFTWARE ASSOCIATES Income Statement For the year ended December 31, 2021 Net sales $ 710,000 Expenses: Cost of goods sold $ 420,000 Operating expenses 130,000 Depreciation expense 33,000 Income tax expense 49,000 Total expenses 632,000 Net income $ 78,000 SOFTWARE ASSOCIATES Selected Balance Sheet Data December 31, 2021, compared to December 31, 2020 Decrease in accounts receivable $ 10,000 Decrease in inventory 13,000 Increase in prepaid rent 3,000 Decrease in salaries payable 4,000 Increase in accounts payable 7,000 Increase in income tax payable 8,000 Required: Prepare the operating activities section of the statement of cash flows for Software Associates using the indirect metho
Answer:
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $78,000
Adjustment made:
Add : Depreciation expense $33,000
Add: Decrease in accounts receivable $10,000
Add: Decrease in inventory $13,000
Add: Increase in accounts payable $7,000
Less: Decrease in salaries payable -$4,000
Add: Increase in income tax payable $8,000
Less: Increase in prepaid rent -$3,000
Total of Adjustments $64,000
Net Cash flow from Operating activities $142,000
To prepare the operating activities section of the statement of cash flows for Software Associates, you can use the indirect method. We need to make adjustments to the net income by adding back non-cash expenses and taking into account changes in working capital accounts.
Explanation:The operating activities section of the statement of cash flows for Software Associates can be prepared using the indirect method. This method starts with net income and adjusts for non-cash expenses and changes in working capital accounts. Here is a breakdown of the adjustments:
Depreciation expense: Add back the amount of depreciation expense, which is a non-cash expense.Decrease in accounts receivable: Add back the decrease in accounts receivable, as it represents cash received from customers.Decrease in inventory: Add back the decrease in inventory, as it indicates cash used for purchasing goods.Increase in prepaid rent: Subtract the increase in prepaid rent, as it represents cash paid for future rent.Decrease in salaries payable: Add back the decrease in salaries payable, as it indicates cash used for paying salaries.Increase in accounts payable: Subtract the increase in accounts payable, as it represents cash used for purchasing goods on credit.Increase in income tax payable: Subtract the increase in income tax payable, as it represents cash used for paying income taxes.By making these adjustments, you can calculate the cash inflows and outflows from operating activities.
Learn more about cash flows here:https://brainly.com/question/30578844
#SPJ3
Flora has been working at Abacrux Inc. for four-and-a-half years. Her pension plan will vest at her five-year work anniversary. She has had great performance evaluations and has received regular raises and promotions. The internal finance department has determined that cost cutting is needed to keep the company profitable. They recommend that Flora be fired before her pension vests and becomes a permanent liability against the corporation. According to the ______ they cannot fire her to prevent her from getting vested pension rights.
A. Employee Retirement Income Security Act (ERISA)
B. Consolidated Omnibus Budget Reconciliation Act (COBRA)
C. Health Insurance Portability and Accountability Act (HIPPA)
D. Fair Labor Standards Act (FLSA)
E. Immigration Reform and Control Act (IRCA)
Answer:
Employee Retirement Income Security Act (ERISA)
Explanation:
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.
ERISA requires plans to provide participants with plan information including important information about plan features and funding; sets minimum standards for participation, vesting, benefit accrual and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to establish a grievance and appeals process for participants to get benefits from their plans; gives participants the right to sue for benefits and breaches of fiduciary duty; and, if a defined benefit plan is terminated, guarantees payment of certain benefits through a federally chartered corporation, known as the Pension Benefit Guaranty Corporation (PBGC).
In general, ERISA does not cover plans established or maintained by governmental entities, churches for their employees, or plans which are maintained solely to comply with applicable workers compensation, unemployment or disability laws. ERISA also does not cover plans maintained outside the United States primarily for the benefit of nonresident aliens or unfunded excess benefit plans.