Suppose you think Wal-Mart stock is going to appreciate in the next year. Current price is $100, and the call option expiring in one year has an exercise price, X, of $100 and is selling at a price, C, of $10. With $10,000 to invest, you invest all in 1,000 options (10 contracts). Alternatively, you can invest all in the stock. What is the rate of return for each alternative if one year later the stock price is $120?

Answers

Answer 1

Answer:

the rate of return for each alternative if one year later the stock price is $120 is 100% and 20%

Explanation:

Price of buying call option = 10*1000 = 10000

After 1 year the person can reverse the trade and get profit without having to buy the stock.

Hence profit = 120-100 = 20

Minus call price = 10

Profit per each share = 10

On 1000 shares = 10,000

Hence profit = 10,000/10,000 = 100%

In case we buy stock:

Price of stock = 100*1000 = 100,000

Profit on one stock = 120-100 = 20

On 1000 stock = 20,000

Profit = 20,000/100,000 = 20%

Therefore,the rate of return for each alternative if one year later the stock price is $120 is 100% and 20%

Answer 2

Final answer:

The proposed investment scenario compares buying call options versus direct stock for Wal-Mart stock anticipated to rise. If the stock price increases from $100 to $120, investing in call options yields a 100% return due to leverage, whereas direct stock investment yields a 20% return.

Explanation:

The scenario provided asks about the rate of return using either call options or direct stock investment if Wal-Mart stock appreciates from $100 to $120 within one year. With $10,000, one could invest in either 1,000 call options (10 contracts) with an exercise price of $100 and a price of $10 each or buy 100 shares of the stock directly also at $100 each.

Calculating the Rate of Return for Call Options

If the stock price rises to $120, the value of the call option will also go up. Each call option is now worth $20 (stock price of $120 - exercise price of $100). This makes the total value of the options $20,000 (1,000 options x $20). Subtracted from this the initial investment of $10,000, we get a profit of $10,000. The rate of return on the call options would be the profit divided by the investment, which results in 100% (($10,000 / $10,000) x 100%).

Calculating the Rate of Return for Stock Investment

Investing in the stock itself at $100 per share, with $10,000 you could buy 100 shares. At the end of the year, if the stock price is $120, your investment is worth $12,000 (100 shares x $120). The profit is $2,000 ($12,000 - $10,000), and the rate of return is 20% (($2,000 / $10,000) x 100%).

Investing in call options in this case provides a much higher rate of return due to the leverage effect, which means that for the same amount of money, you control many more shares through options than you could if buying the stock outright. However, the risk is also higher with options, as they can expire worthless if the stock price does not rise above the exercise price by the expiration date.


Related Questions

What factors have limited the ability of local law enforcement agencies to respond to the growing threat of computer crime? Answer A. lack of training B. lack of diagnostic equipment C. lack of specialized personnel D. all of the above 2. When files are deleted from a hard drive: Answer A. they are gone forever B. the entry in the file allocation table is marked as empty and the files are ignored on the hard drive C. the entry in the file allocation table is marked as empty and the files are removed from the hard drive D. they cannot be restored without a laboratory 3. The DOJ operates the National INFOSEC Education and Training Program.. TRUE OR FALSE 4. What principle should guide the analysis of storage devices? Answer A. protect the original evidence B. be able to explain every action you take C. be aware of the limits of your ability to search legally D. all of the above 5. The "Monkey Wrench Gang," a 1975 book written by Edward Abbey inspired the development of what group: Answer A. World Church of the Creator B. Earth/Environmental Liberation Front C. Symbonese Liberation Army D. Weather Underground 6. Which federal agency houses the Customs Cyber Smuggling Center (3C)? Answer A. ICE B. DOE C. The Secret Service D. US Postal Inspectors 7. Which of the following is an exception contained in Title III? Answer A. the extension of an office computer exception B. the unattended computer exception C. the computer trespasser exception D. all of the above 8. ALF was originally organized in Arizona during the 80s. TRUE OR FALSE 9. Which of the following basic steps in risk analysis should be performed second? Answer A. assessment and evaluation B. identify threats C. determine cost-effective strategy D. implement firewalls 10. The Internet was made the recruitment of members easier than prior to the dawn of the information age. TRUE OR FALSE

Answers

Answer and Explanation:

B. lack of diagnostic equipment

2) A. they are gone forever

3) TRUE

4) C. be aware of the limits of your ability to search legally

5) C. Symbonese Liberation Army

6) B. DOE

7) D. all of the above

8) TRUE

9) D. implement firewalls

10) FALSE

Exercise 12-15B Direct: Computing cash flows LO P5 Case X: Compute cash received from customers: Sales $ 515,000 Accounts receivable, December 31, 2017 27,200 Accounts receivable, December 31, 2018 33,600 Case Y: Compute cash paid for rent: Rent expense $ 139,800 Rent payable, December 31, 2017 7,800 Rent payable, December 31, 2018 6,200 Case Z: Compute cash paid for inventory: Cost of goods sold $ 525,000 Inventory, December 31, 2017 158,600 Accounts payable, December 31, 2017 66,700 Inventory, December 31, 2018 130,400 Accounts payable, December 31, 2018 82,000 For each of the above three separate cases, use the information provided about the calendar-year 2018 operations of Sahim Company to compute the required cash flow information.

Answers

Answer:

1. $508,600

2. $141,400

3. $481,500

Explanation:

Case X:

Cash Received From Customers:

= Sales + Opening Account Receivable - Closing Account Receivable

= 515,000 + 27,200 - 33,600

= $508,600

Case Y:

Cash Paid For Rent:

= Opening Rent Payable + Rent Expenses - Closing Rent Payable

= 7,800 + 139,800 - 6,200

= $141,400

Case Z:

Purchase = Cost of Goods Sold + Closing Inventory - Opening Inventory

                 = 525,000 + 130,400 - 158,600  

                = $496,800

Cash Paid For Merchandise:

= Opening Account Payable + Purchase - Closing Account Payable

= 66,700 + 496,800 - 82,000

= $481,500

Final answer:

To calculate the required cash flow information for each case, you can use the given information. For Case X, compute cash received from customers by subtracting the increase in accounts receivable from sales. For Case Y, compute cash paid for rent by subtracting the decrease in rent payable from rent expense. For Case Z, compute cash paid for inventory by subtracting the increase in accounts payable from cost of goods sold and subtracting the increase in inventory.

Explanation:

For Case X: Compute cash received from customers:

Sales: $515,000

Accounts receivable, December 31, 2017: $27,200

Accounts receivable, December 31, 2018: $33,600

To calculate cash received from customers, we need to subtract the increase in accounts receivable from sales:

Cash received from customers = Sales - Increase in accounts receivable

= $515,000 - ($33,600 - $27,200) = $515,000 - $6,400 = $508,600

For Case Y: Compute cash paid for rent:

Rent expense: $139,800

Rent payable, December 31, 2017: $7,800

Rent payable, December 31, 2018: $6,200

To calculate cash paid for rent, we need to subtract the decrease in rent payable from rent expense:

Cash paid for rent = Rent expense - Decrease in rent payable

= $139,800 - ($6,200 - $7,800) = $139,800 - $1,600 = $138,200

For Case Z: Compute cash paid for inventory:

Cost of goods sold: $525,000

Inventory, December 31, 2017: $158,600

Accounts payable, December 31, 2017: $66,700

Inventory, December 31, 2018: $130,400

Accounts payable, December 31, 2018: $82,000

To calculate cash paid for inventory, we need to subtract the increase in accounts payable from cost of goods sold and subtract the increase in inventory:

Cash paid for inventory = Cost of goods sold - Increase in accounts payable + Decrease in inventory

= $525,000 - ($82,000 - $66,700) + ($158,600 - $130,400) = $525,000 - $15,300 + $28,200 = $537,900

Workers are compensated by firms with "benefits" in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance. Suppose that in 2000, workers at one steel plant were paid $20 per hour and in addition received health benefits at the rate of $4 per hour. Also suppose that by 2010 workers at that plant were paid $21 per hour but received $9 in health insurance benefits. By what percentage did the wage change at this plant from 2000 to 2010?

Answers

Answer:

The percentage by which wage changes from 2000 to 2010 is 2.26 %.

Explanation:

This problem requires us to calculate the wage change from 2000 to 2010 in percent. The wage rate in 2000 and 2010 is given that is 24 dollars (20+4) and 30 (21 + 9). To calculate the rate of change we will use following formula.

Growth Rate = (Present/ past)^ (1/n") -1

" n is period range

(Putting values)

                   = (30/24)^ (1/10) -1

                   =  2.26 %

Suppose that at the beginning of 2019 Jamaal's basis in his S corporation stock is $0, he has a $0 debt basis associated with a $16,000 loan he made to the S corporation, and he has a $11,000 suspended loss from the S corporation. In 2019, Jamaal contributed $14,000 to the S corporation, and the S corporation had ordinary income of $10,000. Assume that Jamaal owns 40 percent of the S corporation. How much net income or loss does Jamaal report this year from the S corporation?

Answers

Answer:

-$7,000

Explanation:

Net loss reported by Jamaal this year from the S corporation:

= Ordinary income - suspended loss from the S corporation

= (40 percent of the S corporation × Ordinary income) - suspended loss from the S corporation

= (40% × $10,000) - $11,000

= $4,000 - $11,000

= -$7,000

Jamaal may deduct the $11000 loss carryover against his debt basis,

which was increased by his $14,000 contribution,

and his $4,000 share of S corporation income.

Elkins Corporation uses the perpetual inventory method. On March 1, it purchased $20,000 of inventory, terms 2/10, n/30. On March 3, Elkins returned goods that cost $2,000.
On March 9, Elkins paid the supplier. On March 9, Elkins should credit :
a. purchase discounts for $400.
b. inventory for $400.
c. purchase discounts for $360.
d. inventory for $360.

Answers

Answer:

d. inventory for $360.

Explanation:

The journal entry is shown below:

Account payable A/c Dr $18,000

     To Cash A/c $17,640

     To Inventory A/c $360

(Being the payment is recorded)

The computation of the account payable

= Purchased goods - returned goods

= $20,000 - $2,000

= $18,000

And, the discount would be

= Accounts payable × percentage given

= $18,000 × 2%

= $360

The remaining amount would be credited to the cash account.

A strategic business unit (SBU): Question 4 options: competes with the same companies as the other SBUs in the parent organization shares the same mission with all the other SBUs in the parent organization controls its business independent of other SBUs in the organization usually benefits from the combined corporate raw materials purchases still has strategic planning performed back at corporate headquarters

Answers

Answer:

The correct answer is letter "C": controls its business independent of other SBUs in the organization.

Explanation:

A Strategic Business Unit or SBU is a division of a larger company that is managed by itself, having its own vision, mission, and goals. Even if the SBU is an independent unit of the business that has its own competitors, it is an important part of the whole company.

McCann Co. has identified an investment project with the following cash flows.

Col1 Year 1 2 3 4
Col2 Cash Flow $ 530 690 875 1,090

a. If the discount rate is 10 percent, what is the present value of these cash flows
b. What is the present value at 18 percent? (Do not round intermediate calculations
c. What is the present value at 24 percent? (Do not round intermediate calculations e.g., 32.16.) and round your answer to 2 decimal places,

Answers

Answer:

Explanation:

Cash flow is 530 , 690 , 875 and 1090 in 1st to 4 th year respectively

discount rate = 10 %

NPV = 530/ 1.10 + 690 / (1.10)² + 875/(1.10)³ + 1090/ (1.10)⁴

= (530x1.10³ + 690 x 1.10² + 875x 1.10 + 1090)/ 1.10⁴

= (705.43 x  +834.9 +962.5 +1090)1.10⁴

= 3592.83 / 1.10⁴

= 2453.95

Discount rate 18%

NPV = 530/ 1.18 + 690 / (1.18)² + 875/(1.18)³ + 1090/ (1.18)⁴

= (530x1.18³ + 690 x 1.18² + 875x 1.18 + 1090)/ 1.18⁴

= (870.80696 +960.756 +1032.5 +1090)1.18⁴

= 2039.46

Discount rate 24%

NPV = 530/ 1.24 + 690 / (1.24)² + 875/(1.24)³ + 1090/ (1.24)⁴

= (530x1.24³ + 690 x 1.24² + 875x 1.24 + 1090)/ 1.24⁴

1010.51072+ 1060.944+1085+1090 / 1.24⁴

= 1796.14

Divine Apparel has 3,100 shares of common stock outstanding. On October 1, the company declares a $0.75 per share dividend to stockholders of record on October 15. The dividend is paid on October 31. Record all transactions on the appropriate dates for cash dividends. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)1) Record the declaration of cash dividends.2) Record the entry on date of record.3) Record the payment of cash dividends

Answers

Final answer:

To record the cash dividends transactions, follow these steps: 1) Record the declaration of cash dividends. 2) Record the entry on the date of record. 3) Record the payment of cash dividends.

Explanation:

To record the cash dividends transactions, we need to follow the following steps:

Record the declaration of cash dividends: On October 1, we will debit Retained Earnings for the total amount of cash dividends, $0.75 per share, multiplied by the number of shares outstanding, 3,100. This would decrease Retained Earnings and create a liability called Dividends Payable.Record the entry on the date of record: On October 15, we do not need to record any journal entry since this is just a record-keeping date which determines who the shareholders are that will receive the dividends.Record the payment of cash dividends: On October 31, we will debit Dividends Payable for the total amount of cash dividends, $0.75 per share, multiplied by the number of shares outstanding, 3,100. We will also credit Cash for the same amount. This will decrease the liability of Dividends Payable and provide a decrease in assets with the cash payment.

American car dealers are still not completely back on their feet from a recent economic downturn. In order to help American car companies like Ford and GM gain more sales, Senator Joseph Ellis has proposed that all automobiles imported from Japan and Germany should pay an extra $2,000 per vehicle to enter the United States. (This would not affect cars from foreign car companies like Toyota and BMW that are built in factories in the United States, only those cars that are actually transported from overseas into the United States.Type of trade barrier: _________________________The trade barrier meant to protect _________________________.Argument for why you would or would not recommend this proposal:_________

Answers

Answer:

The answer is Tariffs.

Explanation:

To put it simply, tariffs are taxes put upon imported goods from foreign countries.

However, imported means actual and physical goods that are physically transported from one country to another.

These tariffs are imposed to protect the local industries/goods and services. Tariffs increase the price of imported goods which are usually cheaper than the locally produced goods, thus increasing the demand for the local goods.

I would recommend this as certain financially stronger foreign corporations do various illegal and unethical practices such as Dumping (selling below the production cost) which can be harmful for the local industries in the long term.

Moreover, a nation should focus more on developing entrepreneur capacities within their own countries rather than majorly relying on imported goods.

In addition, local small and medium businesses contribute to the employment more. Making it much important to protect the local industries.

Standing in line at a small-town grocery store gives people a chance to socialize. Is this a positive externality associated with the act of shopping? Why or why not?

a. Yes, because chatting with others is not inherently part of buying groceries
b. No, because the benefit is to the shoppers, not to third parties.
c. Yes, because in large cities such socializing would not occur.
d. No, because people can casily socialize elsewhere, as well.
e. Yes. because not every shopper is in a mood to talk.

Answers

Answer:

A. Yes, because chatting with others is not inherently part of buying groceries

Explanation:

When a third party benefits from the transaction between two parties its is known as economic transaction. For example when the parents pay for college education for their children, school and the parents are not the only beneficiaries , it is also beneficial for the society as the student would become a good citizen and that would solve many social problems itself.

Standing in line at small town grocery store gives the people chance to socialise. It is part of positive externality because chatting with others is not inherently part of buying groceries, it is an extra benefit for the buyers.

Firm X has declared a stock dividend that pays one share of stock for every five shares owned. After the stock dividend, earnings per share will:_________a. Remain the same.b. Decline 20%.c. Decline 5%.d. Not enough information.

Answers

Answer:

Option (b) Decline 20%

Explanation:

Data provided in the question:

Firm X has declared a stock dividend that pays one share of stock for every five shares owned

Therefore,

The increase in number of shares

= [ 1 ÷ 5 ] × 100%

= 20%

Thus,

The earnings per share will decrease by the amount of increase in number of shares i.e decrease by 20%

Hence,

Option (b) Decline 20%

Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October:

Trees processed: 310 trees
Production: paper 180,000 sheets
pencil casings 180,000
Sales: paper 170,000 at $0.20 per page
pencil casings 177,500 at $0.24 per casing

The cost of purchasing 310 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $12,500. Bismite's accounting department reported no beginning inventory.

What are the paper's and the pencil's approximate weighted cost proportions using the sales value at split-off method, respectively?

Answers

Answer:

Paper = 0.45 and Pencil = 0.55

Explanation:

For computing the weighatge cost proportions, first we have to determine the sales value at split off point which is shown below:

For paper, it would be

= 180,000 × $0.20

= $36,000

For pencil, it would be

= 180,000 × $0.24

= $43,200

Now the total sales would be

= $36,000 + $43,200

= $79,200

Now the weightage would be

For paper = Paper sales ÷ Total sales

                = $36,000 ÷ $79,200

                = 0.45

For pencil  = Paper sales ÷ Total sales

                  = $43,200 ÷ $79,200

                   = 0.55

Final answer:

To calculate the approximate weighted cost proportions of paper and pencil casings using the sales value at split-off method, divide the sales value of each product by the total sales value of both products.

Explanation:

In order to determine the approximate weighted cost proportions of paper and pencil casings using the sales value at split-off method, we need to consider the sales value of each product and divide it by the total sales value of both products.

The sales value of paper is $0.20 per page, and the sales value of pencil casings is $0.24 per casing.

Using the given sales figures, the total sales value for paper is $34,000 (170,000 pages x $0.20 per page), and the total sales value for pencil casings is $42,600 (177,500 casings x $0.24 per casing).

The approximate weighted cost proportion of paper can be calculated by dividing the sales value of paper by the total sales value of both products: $34,000 / ($34,000 + $42,600) = 0.444.

The approximate weighted cost proportion of pencil casings can be calculated by dividing the sales value of pencil casings by the total sales value of both products: $42,600 / ($34,000 + $42,600) = 0.556.



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Munchery provides an alternative to standard food delivery with its high-quality meals created by talented chefs. As the company grew, it discovered the need for a robust system to capture new and repeat customer information. That system helped the company identify customers' food needs and wants.. After implementing a CRM system, Munchery discovered that not only did the system provide management and relationship-building capabilities, but it also met a third overall business goal. What was that third CRM system goal?

Answers

Final answer:

The third goal Munchery achieved through implementing a CRM system was the capability to analyze customer data for strategic decision making and product development. This data provided insight into customer trends, habits and preferences, helping the company devise effective business strategies and new product offerings.

Explanation:

The Customer Relationship Management (CRM) system Munchery adopted aimed to accomplish three major goals: capturing customer information, facilitating relationship management, and a third goal which was to analyze customer behavior for strategic decision-making and product development. The data captured by the CRM system allowed Munchery to analyze trends, preferences, and eating habits across their customer base. This information directly fed their strategic decision making and influenced the development of new dishes and meal plans. Hence, the third overarching goal achieved by implementing the CRM system was leveraging valuable customer data to guide business strategy and future product offerings.

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Purchasing Power Parity (PPP) theory states that A. the exchange rate between currencies of two countries should be equal to the ratio of the countries' price levels. B. as the purchasing power of a currency sharply declines (due to hyperinflation) that currency will depreciate against stable currencies. C. the prices of standard commodity baskets in two countries are not related. D. both a) and b)

Answers

Answer:

The correct answer is A and B

Explanation:

PPP stands for Purchasing Power Parity, which is a theory that states or define as the exchange rate among the currencies of 2 countries, which should be equal to the ratio of the price levels of the countries.

It is grounded on The Law of One Price, which states all the identical goods  have the same price.

As the purchasing power of the currency which sharply decrease because of hyperinflation, that currency will be depreciated against the stable currencies.

Net income was $450,000. Beginning and ending stockholders' equity was $4,000,000 and $4,800,000, respectively. Beginning total assets = $6,000,000 and ending total assets = $6,600,000. What was the return on assets (ROA)?

A. 6.188%
B. 7.143%
C. 7.5%
D. 10.227%

Answers

Answer:

The correct answer is B. 7.143 %.

Explanation:

Return on assets is a profitability ratio that provides how much profit a company is able to generate from its assets. In other words, return on assets (ROA) measures how efficient a company's management is in generating earnings from their economic resources or assets on their balance sheet. ROA is shown as a percentage, and the higher the number, the more efficient a company's management is at managing its balance sheet to generate income.

The formula to calculate it is given below.

ROA = Net Income/Average total asset * 100

        = 450,000/ 6,300,000*

        = 7.14 %

*= (6,000,000 + 6,300,000)/2

Highly Suspect Corp. has current liabilities of $415,000, a quick ratio of .79, inventory turnover of 9.5, and a current ratio of 1.25. What is the cost of goods sold for the company?

Answers

Answer:

1. Current ratio = Current  assets

                        Current liabilities

1.25  = Current assets

           $415,000

Current assets = 1.25 x $415,000

Current assets = $518,759

2. Quick ratio=  Current assets - Inventory

                      Current liabilities      

0.79  = $518,750 - Inventory

            $415,000

0.79 x $415,000 = $518,750 - Inventory

$327,850 = $518,750 - Inventory

Inventory  = $518,750 - $327,850

Inventory  = $190,900

3. Inventory turnover =   Cost of goods sold

                                         Inventory            

9.5  = Cost of goods sold

         $190,900

Cost of goods sold = 9.5 x $190,900

Cost of goods sold = $1,813,550

Explanation:

In the first instance, there is need to apply the formula of current ratio            in which current ratio and current assets have been given with the exception of  current assets. Therefore, current asset is made the subject         of the formula.

In the second case, we will apply the formula of quick ratio, where quick              ratio, current assets and current liabilities were known except the inventory. Inventory becomes the subject of the formula.

Finally, we will apply the formula of inventory turnover, where inventory and inventory turnover were known, cost of goods sold is made the subject of the formula.

Cost of goods sold to a company is $1,813,550. The explanation part is attached in the form of image for better understanding.

What is inventory turnover?

The inventory turnover ratio determines how often inventory is sold and replaced over a predetermined period of time. Inventory turnover ratio is Average Inventory divided by Cost of Goods Sold.

Inventory turnover measures the frequency with which a company's stock is changed in relation to its cost of sales. A higher ratio is preferred in general. Slow sales or overstocking may be indicated by a low inventory turnover ratio it is also known as surplus inventory.

The average yearly inventory is essentially inventory turnover. It shows how frequently the business has sold stock over a given period of time. This figure is significant since it allows businesses to plan their next financial activities.

Thus, it is $1,813,550.

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George has been looking into buying a bond for his portfolio. His greatest investment objective is total return. Which of the following bonds would be the BEST choice for George with this objective in mind?

A. A bond which has a price of $850, a Yield to Maturity of 4%, and a Current Yield of 3.75%
B. A bond which has a price of $875, a Yield to Maturity of 3.95%, and a Current Yield of 3.80%
C. A bond which has a price of $825, a Yield to Maturity of 3.5%, and a Current Yield of 3.45%
D. A bond which has a price of $925, a Yield to Maturity of 3.75%, and a Current Yield of 3.65%

Answers

Answer:

A. A bond which has a price of $850, a Yield to Maturity of 4%, and a Current Yield of 3.75%

Explanation:

Since George is focussed on achieving a high total return for his portfolio, he will consider adding a bond whose yield to maturity (YTM) is the highest. Among these options, option A would be ideal since it has a 4% YTM; he would probably not consider if the price of $850 is high or not . This is the annual interest rate paid on the bond investment.

Fuller Company builds swimming pools. Fuller budgets that they will sell 12 pools during the month of April at a price of $20,176 per pool. Actual pools sold by Fuller during April were 16 pools at a price of $20,992 per pool. What is the Sales Volume Variance for April? If the variance is unfavorable, use a negative sign right before the number with no space in between.

Answers

Answer:

$80,704

Explanation:

Data provided in the question:

Budgeted Price = $20,176 per pool

Budgeted quantity = 12 pools

Actual quantity = 16 pools

Actual price = $20,992 per pool

Now,

Sales Volume Variance

= ( Actual Quantity - Budgeted Quantity) × Budgeted price

Thus,

Sales Volume Variance for April = ( 16 - 12 )  × $20,176

or

Sales Volume Variance for April = $80,704

Final answer:

The Sales Volume Variance for April is $80,704.

Explanation:

To calculate the Sales Volume Variance, you need to compare the budgeted sales volume with the actual sales volume.

The formula for Sales Volume Variance is (Actual Quantity - Budgeted Quantity) x Budgeted Price.

In this case, the budgeted quantity is 12 pools and the actual quantity is 16 pools, while the budgeted price is $20,176 per pool.

Therefore, the Sales Volume Variance for April is -

= (16 - 12) x $20,176

= $80,704.

Explain how leveraging an IS solution can help Soliel Panel Distribution achieve operational efficiency.

Answers

Answer:

efficiency is the main concern for Soliel Panel Distribution. Integrating technology into its operations will enhance internal efficiencies and service delivery. As the organization grows, change is inevitable (Have & Have, 2017). With the crises the company is going through, the IT department should consider incorporating business process management (BPM), while developing SolDistHR. BPM gives an opportunity to look and control organizational processes. Effective implementation of BPM requires organizing the outcomes to ensure proper focus on the goals, correcting and enhancing processes before automation, standardizing processes, enabling continuous change, and improving the existing processes.

As the business grows, it brings new challenges, which make it critical to ensure effective change management. The IT teams should first understand the prevailing status quo within the organization. Creation of a compelling vision of the future is the second stage. The second stage requires the participation of each employee to guarantee smooth organizational operation. In the third stage, building a change coalition, the IT team ensure that they buy the rational for change and be part of the change. In step four, the team mobilizes its commitment and ensuring that there is adequate support for the change. The final stage is evaluation of programs to ensure everything is in order.

The IT team should include finance manager responsible for budgeting and forecasting project activities. Two IT professionals responsible for designing the program to ensure it meets the needed specifications and developing software compatible with other programs. Legal officer ensures that all contractual obligations are met and overseeing all the copyright issues.

Final answer:

Leveraging an IS solution helps Soliel Panel Distribution improve operational efficiency via reduced unit costs, flexible service structures, improved workflow, and enhanced communication. It enables strategic group purchasing and ensures technology deployment is value-driven. These benefits culminate in increased productivity, profitability, and customer satisfaction.

Explanation:

Leveraging an Information System (IS) solution can significantly enhance Soliel Panel Distribution's operational efficiency in numerous ways. By leveraging new technology, Soliel Panel Distribution can drive down unit costs through automation and improved efficiency in production and distribution processes. This results in increased productivity and quality, substantial cost savings, and an edge in competitive pricing.

Furthermore, the ability to re-centralize or decentralize services allows the company to optimize its operational structure based on current needs and market conditions. This flexibility can lead to improved service quality and faster response times, adapting to customer demands efficiently. The use of an IS solution can greatly improve workflow planning and efficiency by streamlining processes, leading to enhanced performance and customer satisfaction.

The concept of group purchasing within an IS framework can be used to negotiate better deals and lower prices for bulk purchases, which in turn increases the company's profitability. Moreover, IS can improve communications and information flow within the organization and with external stakeholders, thus fostering problem-solving and relationship-building.
Finally, ensuring coordinated efforts between IT specialists and operations staff reflects the importance of extracting the most value from deploying Management and Automation Systems (MAS). By being solution-oriented and implementing changes based on scientific analysis of problems, Soliel Panel Distribution can meet customer needs more effectively, thereby increasing the share of the market (SOM) and profitability.

Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Answers

Answer:Interest payment = $1,350,000, Total cash paid = $57,000,000

Explanation:

Coupon Face value = $30,000,000, coupon interest rate = 9% = 9÷100 = 0.09, period = 10 years since the payment is semi - annually , period is multiplied by 2 = 10 ×2 =20, semi annually = 6/12

To calculate the interest payment, we use the formula

Face value of the bond × coupon interest rate × semi- annual payment

= 30,000,000 × 0.09 × 6/12

= $1,350,000

To calculate the total cash paid to investors over the life of the bond, we use

Interest payment × period

Since period = 20

1,350,000 × 20

= $27,000,000

Therefore the total cash paid = $30,000,000 + $27,000,000

= $57,000,000

Campbell Inc receive a premium more cash than the principal amount from the purchaser .The purchaser is willing to pay more because the purchaser of the bond will receive interest payment of $1,350,000

Efrain owns 1,000 shares of RJ Inc. common stock which he purchased three years ago for $36,000. Efrain sells the 1,000 shares on October 15, 2018, for $10,000 On November 12, he purchases 400 shares of RJ Inc. preferred stock for $8,000. Efrain's recognized loss on the sale of the 1,000 shares will be A. $26,000. B. $10,400 O C. $15,600. O D. $0.

Answers

Answer:

option (A) $26,000

Explanation:

Data provided in the question:

Number of shares owned = 1,000

Cost of stocks 3 years ago = $36,000

Number of shares sold = 1,000

Selling value = $10,000

Now,

Loss on sale of 1000 Shares = Sale value - Purchase value

or

Loss on sale of 1000 Shares = $36,000 - $10,000

or

Loss on sale of 1000 Shares = $26,000

Hence,

answer is option (A) $26,000

An increase in the amount of household wealth in an economy would ________ the average standard of living and would ________ the spending power experienced by the typical person.a. raise; have little effect onb. raise; improvec. raise; reduced. have no effect on; improvee. lower; reduce

Answers

Answer: raise; have little effect on is the correct option

Explanation:Wealth is understood as ownership of economic capital. It is viewed as a

dimension of people’s economic (or material) well-being, alongside income and

consumption. There are other concepts of capital that are important to people’s well-being

and complement the concept of economic capital, such as human capital, social capital

and collectively-held assets. However, while they may have considerable economic value to

the people that possess (or have access to) them, they are not material assets and liabilities

over which people can exercise ownership rights.

Information on household wealth is important at both the macro and micro levels.

Wealth is one of the key components of the economic system. It is a source of finance for

future consumption, for reducing vulnerability to shocks and to other unexpected

developments, and for undertaking business and other economic activities. At both the

macro and micro levels, household wealth statistics play a vital role in informing responses

to a wide range of policy and research questions. However, the perspectives and insights

provided at each level are also quite different. The primary focus

at the macro level is on the household sector’s wealth, its relation with the other sectors of

the economy, and its role within the broader economic system; conversely, the primary

focus at the micro level is on the wealth of individual households and its distribution

across different types of households.

A home buyer bought a house for $245,000. The buyer paid 20 percent down but decided to finance closing costs of 3 percent of the mortgage amount. If the borrower took out a 30-year fixed-rate mortgage at a 5 percent annual interest rate, how much interest will the borrower pay over the life of the mortgage

Answers

Answer:

Interest = $188,264.78

Explanation:

given data

present value = $245,000

rate = 20 %

finance closing costs = 3 percent

time = 30 year

fixed rate mortgage = 5 % annual = [tex]\frac{0.05}{12}[/tex] monthly

to find out

interest will the borrower pay

solution

we will apply here present value of annuity formula for find annuity that is

present value annuity  = Annuity ×  [tex]\frac{1-(1+r)^{-t}}{r}[/tex]    ..........1

put here value we get

$245,000 × 0.80 × 1.03 = Annuity × [tex]\frac{1-(1+\frac{0.05}{12})^{-30*12}}{\frac{0.05}{12}}[/tex]

solve it we get

$201,880 = annuity × [tex]\frac{0.7762}{0.0042}[/tex]

annuity =  $1,083.74

so now we get interest that is

interest = annuity × 360 - present value annuity     ..............2

interest = $1,083.74 × 360 -  ( $245,000 × 0.80 × 1.03 )  

Interest = $188,264.78

One important unintended consequence of the Smoot-Hawley Tariff Act was to:
a.lessen the severity of the Great Depression by increasing exports.
b.provide the federal government with an effective tool for exercising monetary policy.
c.increase the efficiency of domestic automobile production.
d.increase the severity of the Great Depression by causing other countries to retaliate, and thus leading to a decline in exports.
e.increase the U.S. government budget deficit by $15 million

Answers

Answer:

d. increase the severity of the Great Depression by causing other countries to retaliate, and thus leading to a decline in exports.

Explanation:

Although the main purpose of the Smoot-Hawley Tariff Act was to impose tariffs on imported goods, it followed with reciprocally respond. Since foreign countries were hindered in exporting to the US, they imposed tariffs on the US afterward.

Above all, all economists and historians agreed that this act increased the negative effects of the Great Depression.

What is the preferred method of controlling environmentally hazardous materials during manufacturing, operations, and disposal?

A. Source reduction or elimination is the most highly preferred control strategy.
B. Treatment of hazardous wastes is preferred over recycling because of lower manufacturing costs.
C. Disposal is the preferred method because of new technologies and improved landfill processes.
D. Recycling is preferred over source reduction because reuse of hazardous substances costs less than substituting alternate processes.

Answers

Answer:

b,

Explanation:

treatment of hazardous waste is preferred to the other options, in a sense they all have side effect. But if waste are treated it reduces the rate of pollution.

The most preferable method to control environmentally hazardous materials is source reduction or elimination, which involves changing manufacturing processes to produce less or no hazardous materials.

The preferred method for controlling environmentally hazardous materials during manufacturing, operations, and disposal is source reduction or elimination. This control strategy is higher on the environmental hierarchy than treatment, recycling, and disposal. While these other methods can also help to mitigate the impact of hazardous materials on the environment, they are less preferable because they do not eliminate the problem at its root. Source reduction involves altering the manufacturing process to lower or eliminate the production of hazardous materials, thereby preventing environmental harm before it begins.

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Cobe Company has already manufactured 17,000 units of Product A at a cost of $25 per unit. The 17,000 units can be sold at this stage for $450,000. Alternatively, the units can be further processed at a $280,000 total additional cost and be converted into 5,800 units of Product B and 11,100 units of Product C. Per unit selling price for Product B is $100 and for Product C is $56.

Answers

Answer:

It is more convenient to continue processing.

Explanation:

Giving the following information:

Cobe Company has already manufactured 17,000 units of Product A for $25 per unit. The 17,000 units can be sold at this stage for $450,000. Alternatively, the units can be further processed at a $280,000 total additional cost and be converted into 5,800 units of Product B and 11,100 units of Product C. Per unit selling price for Product B is $100 and for Product C is $56.

We need to determine whether it is more convenient to sell the units now, or continue processing.

Sell now:

Income= 450,000 - (17,000*25)= $25,000

Continue processing:

Income= sales produc B + sales product C - joint cost - Product A cost

Income= 5,800*100 + 11,100*56 - 280,000 - (17,000*25)= $496,600

It is more convenient to continue processing.

Which 2 of the statements below are correct about using the client details and dashboard screens of QuickBooks Online Accountant and working with client company files?

a. You can import QuickBooks Online Trial Balance data into ProConnect Tax Online to prepare tax returns via the client dashboard.
b. You can start a new tax return from the client dashboard for non QuickBooks Online clients or clients that are using QuickBooks Online.

Answers

Final answer:

The correct statements about using the client details and dashboard screens of QuickBooks Online Accountant and working with client company files are explained.

Explanation:

The correct statements about using the client details and dashboard screens of QuickBooks Online Accountant and working with client company files are:

You can import QuickBooks Online Trial Balance data into ProConnect Tax Online to prepare tax returns via the client dashboard. This feature allows you to easily transfer financial data between QuickBooks and ProConnect for tax preparation purposes.You can start a new tax return from the client dashboard for non-QuickBooks Online clients or clients that are using QuickBooks Online. This option allows you to create tax returns for clients who do not use QuickBooks Online or for those who use a different version of QuickBooks.

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Assume that the following asset values (in millions of dollars) exist in Ironmania:

Category

Value

Federal Reserve Notes in circulation

$ 700

Money market mutual funds (MMMFs) held by individuals

400

Corporate bonds

300

Iron ore deposits

50

Currency in commercial banks

100

Savings deposits, including money market deposit accounts (MMDAs)

140

Checkable deposits

1,500

Small-denominated (less than $100,000) time deposits

100

Coins in circulation

40

Instructions: Enter your answers as whole numbers.

a. What is M1 in Ironmania? $ _________million.

b. What is M2 in Ironmania? $_________ million.

Answers

Answer:

a. $2,240

b. $2,880

Explanation:

The computations are shown below:

a. For M1:

= Notes in circulation + Check-able deposits +  Coins in circulation

= $700 + $1,500 + $40

= $2,240

b. For M2:

= M1 + saving deposits + time deposit + Money market mutual funds (MMMFs) held by individuals

= $2,240 + $140 + $100 + $400

= $2,880

All other information which is given is not relevant. Hence, ignored it

Presented below is information for Metlock Company.
1. Beginning-of-the-year Accounts Receivable balance was $22,700.
2. Net sales (all on account) for the year were $101,600. Metlock does not offer cash discounts.
3. Collections on accounts receivable during the year were $82,300.
Prepare (summary) journal entries to record the items noted above

Answers

Answer:

The Journal entries are as follows:

(1) For Opening Balance Journal entry Not Required

(2) Net sales (all on account) for the year were $101,600. Metlock does not offer cash discounts,

Accounts Receivable A/c  Dr. $101,600

To Sales A/c                                            $101,600

(To record sales on account)

(3) Collections on accounts receivable during the year were $82,300,

Cash A/c                      Dr. $82,300

To Accounts Receivable                 $82,300

(To record the receipt of accounts receivable)

One way in which philanthropy can be made strategic is to

a.consult with a tax professional to get the maximum deductions.

b.bring contribution programs into sharper alignment with business endeavors.

c.distribute contributions as widely as possible.

d.eliminate contributions to inefficient non-profit organizations.

Answers

Answer:

d. Eliminate contributions to inefficient non-profit organizations

Explanation:

Other listed options are valuable to the question on strategic philanthropy except that on the need to eliminate contributions to inefficient non-profit organizations. No philanthropist would want to offer support to non-profit organizations that are unproductive and inefficient.  

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