Answer:
before, during, and after the campaign through the use of pretests, inquires and posttests.
Explanation:
Advertising campaigns can be defined as the advertisement of a product that focuses mainly on communicating a similar type of message to the potential customers. This can be achieved through different mediums inorder to create an awareness about the product.
Measurement of an effective advertising campaign is very necessary, it is used to determine how well a product will sell in the market.
The effectiveness of an advertising campaign can be evaluated by utilizing pretests, inquires and posttests to determine if the potential customers have seen the advertisement and how well they are responding to it.
The effectiveness of an advertising campaign can be measured: E) Before, during, and after the campaign through the use of pretests, inquiries, and posttests.
Here's a detailed explanation:
Before the campaign:
Pretests gauge the target audience's awareness, attitudes, and behaviors through surveys or focus groups. This helps predict campaign success and refine strategies.
During the campaign:
Ongoing inquiries assess campaign performance in real-time, including social media engagement and feedback. This enables flexible fund reallocation, strategy adjustments, and immediate response to feedback.
After the campaign:
Posttests evaluate campaign effectiveness by comparing post-campaign data to pre-campaign baselines, including sales figures, focus groups, and media impressions. This analysis offers valuable insights for improving future campaigns.
Evaluating before, during, and after the campaign provides a complete view of its impact, aiding informed decisions for future improvements.
The complete question is shown below:
The effectiveness of an advertising campaign can be measured:
A) only after the campaign has been carried out completely and results have been tabulated.
B) only before the campaign begins, to prevent unnecessary expenditures.
C) during the campaign to determine whether more or less funds should be allocated, but not after the campaign.
D) several weeks after the beginning of the campaign to determine whether the campaign is headed in the right direction.
E) before, during, and after the campaign through the use of pretests, inquiries, and posttests.
Company had 50,000 shares of common stock outstanding on January 1, 2021. On April 1, 2021, the company issued 20,000 shares of common stock. The company had outstanding fully vested incentive stock options for 5,000 shares exercisable at $10 that had not been exercised by its executives. The average market price of common stock was $12. The company reported net income in the amount of $269,915 for 2021. What is the basic earnings per share (rounded)?
Answer:
$4.15
Explanation:
Net income $269,915
Shares of common stock outstanding 50,000
Shares of common stock 20,000
Hence:
$269,915/(50,000 + (20,000 × 9/12)
=$269,915/50,000+15,000
=$269,915/65,000
= $4.15
Therefore the basic earnings per share (rounded) is $4.15
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) E-Travel Pricecheck Total assets $ 5,337,156 $ 1,730,224 Total liabilities 2,854,475 472,610 Total stockholders’ equity 2,482,681 1,257,614 Sales revenue $ 2,755,426 $ 2,138,212 Interest expense 80,233 20,084 Tax expense 146,400 43,168 Net income 291,526 481,472 Required: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. (Enter dollar answers using amounts given in thousands of dollars and round ratios to 2 decimal places.)
Answer:
E-travel-1.15
Pricecheck-0.38
Explanation:
Debt to equity ratio compares the finance provided by outsiders viz-a-viz that which is provided by the original owners of the company,the shareholders, in order to determine whether or not the company is at risk of slow growth if outsiders withdraw their funds.
Debt to equity=total liabilities/equity
E-Travel:
total liabilities is $2,854,475
total equity $2,482,681
debt-equity ratio=$2,854,475/$2,482,681=1.15
Debtholders provided more capital funding than the stockholders
Pricecheck:
total liabilities is $472,610
total equity is $1,257,614
debt-to-equity ratio=$472,610/$1,257,614 =0.38
The debt to equity ratio for E-Travel is 1.15, and for Pricecheck, it is 0.38. This ratio measures a company's financial leverage by comparing its total liabilities to its shareholders' equity, indicating how much debt the company has used to finance its assets relative to the value of shareholders' equity.
Explanation:The debt to equity ratio is a financial metric that assesses a company's financial leverage by comparing its total liabilities to its shareholders' equity. For E-Travel, the calculation is as follows:
Debt to Equity Ratio = Total Liabilities / Total Stockholders' Equity
= $2,854,475 / $2,482,681 = 1.15 (rounded to two decimal places)
For Pricecheck, the calculation is:
Debt to Equity Ratio = Total Liabilities / Total Stockholders' Equity
= $472,610 / $1,257,614 = 0.38 (rounded to two decimal places)
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_______________________________ can set the stage for international financial investors first to send their funds to a country and cause an appreciation of its exchange rate and then to pull their funds out and cause a depreciation of the exchange rate and a financial crisis as well.
Answer:
Trade balance
Explanation:
A positive trade balance will result in currency appreciation because more goods are exported than imported, which means that there is a net inflow of the home country's currency, increasing its value against foreign currency.
This can lead first to more foreign direct investment because a trade balance is a sign of a strong economy, however, in the long run there can be a radical change in the business cycle: the appreciated currency will make the home country's goods more expensive, reducing the demand for them abroad, in turn decreasing exports, turning the trade balance into negative numbers, and causing a net ouflow of foreign direct invesment due to the weaker economy, and the capital losses because of the currency depreciation.
Morgan would like to purchase a bond that has a par value of $1,000, pays $80 at the end of each year in coupon payments, and has 10 years remaining until maturity. If the prevailing annualized yield on other bonds with similar characteristics is 6 percent, how much will Morgan pay for the bond
Answer:
Price of Bond = $1,147.201
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond for Morgan can be worked out as follows:
Step 1
PV of interest payments
PV of interest =
A × (1+r)^(-n)/r
A- interest payment- 80, r-yield on bond- 6%, n-years to maturity- 10
80 × (1- (1.06)^(-10)
= 588.8069
Step 2
PV of Redemption Value
= 1,000 × (1.06)^(-10)
= 558.3947769
Price of bond
= 588.80 + 558.394
Price of Bond = $1,147.201
On January 2, 2018, the Matthews Band acquires sound equipment for concert performances at a cost of $66,400. The band estimates it will use this equipment for four years, during which time it anticipates performing about 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During year 2018, the band performs 45 concerts.
Compute the year 2018 depreciation using the units-of-production method.
Answer:
14,715
Explanation:
The computation of depreciation using the units-of-production method is shown below:-
Depreciation per concert = (Original cost - Salvage value) ÷ Estimated total concerts
= $66,400 - $1,000) ÷ 200
= $65,400 ÷ 200
= 327
Depreciation in 2018 = Concerts in 2018 × Depreciation per concert
= 45 × 327
= 14,715
Nvidia Corporation, a global technology company located in Santa Clara, California, reported the following information in its 2017 financial statements ($ in millions): 2017 2016 Balance sheets Property, plant, and equipment (net) $ 521 $ 466 Income statement Net sales for 2017 $ 6,910 Required: 1. Calculate the company’s 2017 fixed-asset turnover ratio
Final answer:
The fixed-asset turnover ratio for Nvidia Corporation in 2017 is calculated by dividing its net sales of $6,910 million by the average net PP&E of $493.5 million, resulting in a ratio of approximately 14.01.
Explanation:
To calculate the fixed-asset turnover ratio for Nvidia Corporation in 2017, we divide the net sales by the average net value of property, plant, and equipment (PP&E) for the year. The formula for the fixed-asset turnover ratio is Net Sales / Average Net Fixed Assets. We can use the net values of PP&E for 2017 and 2016 to find the average.
First, we calculate the average net PP&E:
Average Net PP&E = (PP&E at the beginning of the year + PP&E at the end of the year) / 2 = ($466 + $521) / 2 = $493.5 million
Next, we use the formula to find the fixed-asset turnover ratio:
Fixed-Asset Turnover Ratio = Net Sales / Average Net PP&E = $6,910 million / $493.5 million ≈ 14.01
The fixed-asset turnover ratio for Nvidia Corporation in 2017 is approximately 14.01.
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,400 units): Direct materials $172,600 Direct labor 232,000 Variable factory overhead 266,700 Fixed factory overhead 90,000 $761,300 Operating expenses: Variable operating expenses $124,000 Fixed operating expenses 47,100 171,100 If 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is
Answer:
The amount of inventory that would be reported on the absorption costing balance sheet is $70,905
Explanation:
In order to Calculate the amount of inventory under absorption Costing to be reported on the balance sheet, we would have to use the following formula:
amount of inventory under absorption Costing = (Direct materials+Direct labor+Variable factory overhead+ Fixed factory overhead)/ (Production costs units)×units remain unsold
amount of inventory under absorption Costing =($761,300/20,400)×1,900
amount of inventory under absorption Costing = $70,905
The amount of inventory that would be reported on the absorption costing balance sheet is $70,905
Cullumber Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers.
During the month of June, the following merchandising transactions occurred.
June 1 Purchased books on account for $2,160 (including freight) from Catlin
Publishers, terms 2/10, n/30.
3 Sold books on account to Garfunkel Bookstore for $1,000. The cost of
the merchandise sold was $800.
6 Received $60 credit for books returned to Catlin Publishers.
9 Paid Catlin Publishers in full.
15 Received payment in full from Garfunkel Bookstore.
17 Sold books on account to Bell Tower for $1,700. The cost of the
merchandise sold was $950.
20 Purchased books on account for $900 from Priceless Book Publishers,
terms 3/15, n/30.
24 Received payment in full from Bell Tower.
26 Paid Priceless Book Publishers in full.
28 Sold books on account to General Bookstore for $1,950. The cost of the
merchandise sold was $980.
30 Granted General Bookstore $140 credit for books returned costing $50.
Required:
Journalize the transactions for the month of June for Cullumber Warehouse, using a perpetual inventory system. (If no entry is required, write "No Entry" for the account titles and enter 0 for the amounts. )
Answer and Explanation:
The journal entries are shown below:
On Jun 1
Merchandise Inventory $2,160
To accounts payable $2,160
(Being the purchased books on account is recorded)
On Jun 3
Accounts receivable $1,000
To sales revenue $1,000
(Being the credit sales is recorded)
Cost of goods sold $800
To Merchandise Inventory $800
(Being the cost of merchandise sold is recorded)
On Jun 6
Accounts payable $60
To Merchandise Inventory $60
(Being books returned is recorded)
On Jun 9
Accounts payable $2,100 ($2,160 - $60)
To Merchandise Inventory ($2,100 × 2%) $42
To cash $2,058
(Being payment fully paid at discount)
On Jun 15
Cash $1,000
To accounts receivable $1,000
(Being received payment is recorded)
On Jun 17
Accounts receivable $1,700
To sales revenue $1,700
(Being the credit sales is recorded )
Cost of goods sold $950
To Merchandise Inventory $950
(Being the cost of merchandise sold is recorded)
On Jun 20
Merchandise Inventory $900
To accounts payable $900
(Being the purchases made on account is recorded)
On Jun 24
Cash $1,666
Sales Discounts ($1,700 × 2%) $34
To Accounts receivable $1,700
(Being the payment received fully at discount is recorded)
On Jun 26
Accounts payable $900
To Merchandise Inventory ($900 × 3%) $27
To cash $873
(Being the payment is recorded)
On Jun 28
Accounts receivable $1,950
To sales revenue $1,950
(Being the credit sales is recorded)
Cost of goods sold $980
To Merchandise Inventory $980
(Being the cost of merchandise sold is recorded)
On Jun 30
Sales returns and allowances $140
To accounts receivable $ 140
(Being the sales returns is recorded)
Merchandise Inventory $50
To cost of goods sold $50
(Being the cost of merchandise returned is recorded)
Detailed journal entries for Cullumber Warehouse's transactions in June using a perpetual inventory system.
Journal Entries for Cullumber Warehouse for June:
Purchased books on account:Debit Purchases $2,160Credit Accounts Payable $2,160Sold books on account:Debit Accounts Receivable $1,000Credit Sales $1,000Debit Cost of Goods Sold $800Credit Inventory $800Received credit for returned books:Debit Accounts Payable $60Credit Inventory $60Paid Catlin Publishers:Debit Accounts Payable $2,100Credit Cash $2,100Received payment from Garfunkel Bookstore:Debit Cash $1,000Credit Accounts Receivable $1,000Sold books on account to Bell Tower:Debit Accounts Receivable $1,700Credit Sales $1,700Debit Cost of Goods Sold $950Credit Inventory $950Purchased books on account from Priceless Book Publishers:Debit Purchases $900Credit Accounts Payable $900Received payment from Bell Tower:Debit Cash $1,700Credit Accounts Receivable $1,700Paid Priceless Book Publishers:Debit Accounts Payable $900Credit Cash $900Sold books on account to General Bookstore:Debit Accounts Receivable $1,950Credit Sales $1,950Debit Cost of Goods Sold $980Credit Inventory $980Granted credit for returned books to General Bookstore:Debit Sales Returns and Allowances $140Credit Accounts Receivable $140Debit Inventory $50Credit Cost of Goods Sold $50On January 1, 2021, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2022. Construction expenditures for 2021, which were incurred evenly throughout the year, totaled $6,000,000. Marjlee had the following debt obligations which were outstanding during all of 2021: Construction loan, 10% $ 1,500,000 Long-term note, 9% 2,000,000 Long-term note, 6% 4,000,000 Required: Calculate the amount of interest capitalized in 2021 for the building using the specific interest method.
The interest capitalized for Marjlee Company in 2021 for the building is $150,000, computed by applying the construction loan's interest rate (10%) to the full loan amount ($1,500,000).
To calculate interest capitalized for Marjlee Company in 2021 under the specific interest method, we first need to apply the interest rates to the respective debt amounts that are directly related to the construction of the building. Since the construction loan is explicitly for the building, we use its full amount at the interest rate given. Other long-term notes may not be specific to the construction, and the question doesn’t specify that they are, so we will only consider the construction loan for this method.
The interest on the construction loan is calculated as:
Construction Loan Amount: $1,500,000
Interest Rate: 10%
Interest Expense: $1,500,000 x 10% = $150,000
This interest expense of $150,000 on the construction loan would be capitalized as part of the cost of the building.
Jones Manufacturing incurred fixed overhead costs of $8,000 and variable overhead costs of $4,600 to produce 1,000 gallons of liquid fertilizer. It takes 2 hours of direct labor to produce 1 gallon of fertilizer. The standard hours allowed to produce 1,000 gallons of fertilizer is 2,000 hours. Predetermined overhead rate is $5/direct labor hour. What is the total overhead variance? $2,000U. $5,400U. $10,600U. $2,600U.
Answer:
Jone Manufacturing
Total Overhead Variance = $2,000U.
Explanation:
Variance is the difference between budgeted and actual expense. It is favorable when the actual is less than the budgeted amount. It is unfavorable when the actual is more than the budgeted amount. It is neither favorable nor unfavorable when the actual equals the budgeted amount.
Variance analysis as a budgeting tool is used to evaluate the performance of management in managing costs, relative to the activity levels.
In Jones Manufacturing, actual and budgeted costs are calculated as follows:
Actual costs:
Fixed overhead = $8,000
Variable overhead = $4,600
Total = $12,600
Budget costs:
Fixed overhead = $10,000 (2,000 hours x $5)
Variable overhead = $4,600
Total = $14,600
Variance = budgeted overhead minus actual overhead
= $14,600 - $12,600 = $2,000U
The Atlantic City Expressway is a highway that runs from outside Philadelphia to Atlantic City, New Jersey. It is notoriously congested during the summer weekends when many people are driving to the beach about the same time. Because drivers who decide to take this road ignore the impact of their driving on overall traffic congestion the result is ________ cars on the road than the efficient number of cars and a deadweight loss is ________.
Answer:
more, created
Explanation:
In simple words, A negative externalize or dead weight loss relates to the expense to economy that is caused by market mismanagement, when market forces go out of balance. Primarily utilized in economics, the loss of dead weight may be extended to any deficit induced by inadequate prioritization
In the given case, the cars on the road are more than the handling capacity thus, it will obviously result in dead weight loss. .
The Atlantic City Expressway experiences a negative externality during peak travel times as more cars on the road than the efficient number lead to increased traffic congestion and a deadweight loss.
Explanation:The scenario described with the Atlantic City Expressway during summer weekends is an example of a market inefficiency known as a negative externality. When individual drivers choose to drive to the beach, they ignore the impact of their driving on the overall traffic congestion.
This behavior typically results in more cars on the road than would be considered efficient, as each driver does not account for the congestion they add to the road. Consequently, there is a deadweight loss, which is an indication of inefficient resource allocation, leading to a loss of societal welfare.
Such negative externalities can occur when the interstate highway system fails to account for the social costs of congestion, thus leading to overuse and traffic jams. While toll roads aim to offset the cost of the construction and maintenance of roads, they may not always be efficient due to the high cost of collection and the resulting stop-and-go traffic, which itself can contribute to congestion.
As cities and suburbs grow and more people rely on cars, the federal interstate system faces increased pressure. Policies to manage traffic and to fund infrastructure may not always keep up with this growth, exacerbating the issues of congestion, as seen in busy regions such as Washington, D.C., or the urban centers of India. The inefficiencies described lead to higher levels of pollutants, fuel consumption, commutes, and overall societal costs.
The 2013 Income Statement and other selected financial information for Company A, as well as projected amounts for 2014, are shown below. There are no planned gains or losses on disposal of assets in 2014. Assume a tax rate of 35 percent. What is the projected Free Cash Flow (FCF) for 2014? Company A 2013 2014 Revenues 2,000 2,200 Operating Expenses 1,400 1,540 Operating Income 600 660 Interest Expense 100 100 Pretax Income 500 560 Tax Expense 175 196 Net Income 325 364 Depreciation and Amortization 100 100 Capital Expenditure 100 120 Working Capital at Year End 200 220
Answer:
Explanation:
The problem requires excel work so that is why the below picture is attached for good explanation and I hope it helps you. Thank you.
Answer:
The projected Free Cash Flow (FCF) for 2014 is $389
Explanation:
In order to calculate the projected Free Cash Flow (FCF) for 2014 we would have to use the following formula:
Free Cash Flow 2014=Net income+Interest Expense-tax shield on interest expense+non cash expenses-change in working capital-capital expenditures
tax shield on interest expense=100*0.35=35
Free Cash Flow 2014=$364+$100-$35+$100-$20-$120
Free Cash Flow 2014=$389
The projected Free Cash Flow (FCF) for 2014 is $389
Which of the following statements is not correct? a. Monopolistic competition is similar to monopoly because in each market structure the firm can charge a price above marginal costs. b. Monopolistic competition is similar to perfect competition because both market structures are characterized by free entry. c. Monopolistic competition is similar to oligopoly because both market structures are characterized by barriers to entry.
Answer:
c. Monopolistic competition is similar to oligopoly because both market structures are characterized by barriers to entry.
Explanation:
reader beware your answer is right there.
The incorrect statement is that Monopolistic competition is similar to oligopoly because both market structures are characterized by barriers to entry. In reality, Monopolistic competition is characterized by free entry and exit in the long run, unlike an oligopoly which usually has significant barriers to entry.
Explanation:The statement that is not correct is c. Monopolistic competition is similar to oligopoly because both market structures are characterized by barriers to entry. Monopolistic competition and oligopoly differ in terms of entry barriers. Monopolistic competition is characterized by free entry and exit in the long run, resembling perfect competition in this aspect. In contrast, an oligopoly structure denotes a market dominated by a few large producers, and it usually presents considerable barriers to entry, restricting the entry of new firms.
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What is the best approach to use when writing a proposal that is unsolicited?
A: direct approach
B: formal approach
C: persuasive approach
D: cautious approach
Answer:
C, persuasive approach
Explanation:
If the proposal is solicited, approach the letter of transmittal as a positive message, highlighting those aspects of that may give you a competitive advantage. - If the proposal is unsolicited, approach the letter as a persuasive message that must convince the reader that you have something worthwhile to offer.
Please fill in the blanks with appropriate option.
1. A dramatic decrease in tax rates for all Americans over a period of several years leads to a massive, positive demand shock. Before the market has time to adjust, the result of this positive demand shock is ________
2. As the economy responds to gaps caused by different shocks, the focus shifts to the ________ which is the difference between actual output and potential output.
3. A sudden movement of the AD curve, in a positive or negative direction, is known as __________.
4. Due to several months of negative performance, consumer confidence and expectations in the stock market fall dramatically, leading to a negative demand shock. The resulting situation will create an _________.
5. __________ is a sudden movement of the SRAS curve in either a positive or negative direction.
6. After adjusting to the effects of shocks, the economy experiences an eventual return to equilibrium in the long run. This is due in large part to the ability of the economy to undergo an ____________.
Answer: Please refer to Explanation
Explanation:
1. Inflationary Gap.
Due to the availability of more disposal income due to tax cuts, more amount is being spent on consumption leading to a rise in actual GDP which is more than the potential GDP as the economy has not adjusted.
2. Output Gap.
This is the difference between the Actual GDP and the Potential GDP.
3. Demand Shock
This increases or reduces Aggregate Demand due but only temporarily.
4. Recessionary Gap.
This is where actual GDP falls below Potential GDP.
5. Supply Shock.
Like a demand shock, it suddenly increases or reduces the supply of goods and services. It is temporary as well.
6. Self Correction
Economists believe that in the long run, the Economy is capable of adjusting to shocks and returning to it's potential and natural levels.
A lumber mill paid $70,000 for logs that produced 200,000 board feet of lumber in 3 different grades and amounts as follows: Grade Production Market Price Structural 25,000 board feet 1,350/1,000 bd. ft. No. 1 Common 75,000 board feet 750/1,000 bd. ft. No. 2 Common 100,000 board feet 300/1,000 bd. ft. Compute the portion of the $70,000 joint cost to be allocated to No. 2 Common if the value basis is used.
Answer:
The multiple choices:
$35,000.
$23,333.
$70,000.
$17,500.
$0.
The fourth option,$17,500 allocated cost is the correct answer.
Explanation:
The joint cost of $70,000 can be apportioned between the logs of different grades using the sales price of each log as highlighted below:
The sales value of each =board feet*bd. ft
Structural market price =25,000*1350/1000=$33,750
No 1 common market price=75,000*750/1000=$56,250
No 2 common market price=100,000*300/1000=$30,000
Total market price $120,000
The joint cost allocated to No.2 common =market price of no.2 common /total market value*joint cost
the joint cost allocated to no.2=$30,000/$120,000*$70,000=$17,500
Which of the following statements is true regarding the attraction-selection-attrition (ASA) process? The ASA process aids organizations in maintaining the relative heterogeneity of employee personalities and values. Individuals self-select the companies for which they choose to work. Due to economic circumstances, companies today hire people for fit with the job only and are much less concerned about fit with the culture. New organization members are rarely taught the "way of business" in the firm; they simply acquire that knowledge through daily activities. Person-organization misfit has only a minor impact on employee turnover.
Answer:
Individuals self-select the companies for which they choose to work.
Explanation:
In simple words, Benjamin Schneider developed the attractiveness-selection-attrition (ASA) paradigm as a behavioral testable theory that depicts why companies look and behave the manner they do. People are drawn by, chosen and maintained in psychological qualities in organisations whose participants are identical to oneself.
The statement that is true about the attraction-selection-attrition is The ASA process aids organizations in maintaining the relative heterogeneity of employee personalities and values.
The attraction-selection-attrition is a model that was created by Benjamin Schneider. The model is a theory of psychology that explains the reasons why firms are the way and feel the way that they are.
This framework is used to understand the behavior of organizations. In this theory, the organization is said to be due to the people that are there and the founders and top employees.
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Suppose that you open your own business and earn an accounting profit of $35,000 per year. When you started your business, you left a job that paid you a $30,000 salary annually. Also, suppose that you invested $70,000 of your own funds to start up your business.
If the normal rate of return on capital is 10 percent, your economic profit is
A. minus$5,000.
B. minus$2,000.
C. $5,000.
D. $2,000.
Answer:
B. minus$2,000.
Explanation:
The computation of the economic profit is shown below:
As we know that
Economic profit = Total revenue - Explicit costs - Implicit costs
= $35,000 - $30,000 - $7,000
= -$2,000
The implicit cost is come from
= $70,000 ×10%
= $7,000
We simply applied the above formula so that the economic profit could come
-g LotsofDebt, Inc. and Lots of Equity, Inc., both of which operate in the same industry. LotsofDebt, Inc. finances its $34.75 million in assets with $31.25 million in debt and $3.50 million in equity. Lots of Equity, Inc. finances its $34.75 million in assets with $3.50 million in debt and $31.25 million in equity. Calculate the debt ratio,-g You are considering a stock investment in one of two firms (LotsofDebt, Inc. and Lots of Equity, Inc.), both of which operate in the same industry. LotsofDebt, Inc. finances its $34.75 million in assets with $31.25 million in debt and $3.50 million in equity. Lots of Equity, Inc. finances its $34.75 million in assets with $3.50 million in debt and $31.25 million in equity. Calculate the debt ratio
Answer:
Lots of debt = 89.93%
Lots of equity = 10.07%
Explanation:
The calculation of debt ratio of Lots of debt and Lots of equity is given below:-
Debt Ratio = Debt ÷ Total assets
Lots of debt = Debt ÷ Total Assets
= $31.25 million ÷ $34.75 million
= 89.93%
Lots of equity = Equity ÷ Assets
= $3.50 million ÷ $34.75 million
=10.07%
Therefore for computing the debt ratio of Lots of debt and Lots of equity we simply applied the above formula.
If your organization performs nonroutine tasks in a complex environment and you wanted to empower the managers closest to the environment to make decisions and quickly implement them, which type of organizational structure would you likely choose? Subordinates’ need for direction and supervision most influences which aspect of organizational structure? If your firm’s environment is stable, what type of structure would you likely choose?
To empower managers in a complex environment, a flat organizational structure with decentralized decision-making is preferred. Subordinate needs for direction influence whether a Theory X hierarchical or Theory Y flat structure is used. In stable environments, bureaucratic or hierarchical structures are typically chosen.
Explanation:If an organization performs nonroutine tasks in a complex environment and wishes to empower managers to make decisions quickly and implement them, a flat organizational structure would likely be chosen. Flat structures are characterized by fewer hierarchical levels, a broader span of control, and typically encourage decentralized decision-making which is essential for managers to respond with agility to the complexities of their environment. This approach aligns with the contemporary trend of breaking down traditional hierarchies in favor of promoting teamwork and collegial relationships within the workplace.
When subordinates' need for direction and supervision significantly influences an aspect of organizational structure, it is a reflection of whether an organization should be more aligned with Theory X, which suggests a more hierarchical, directive approach, or Theory Y, which supports employee autonomy within a flat structure. The relationship between leadership and subordinates varies with individual autonomy; those requiring more structure benefit from a well-defined work environment, while autonomous employees thrive under leaders who offer flexibility and empowerment.
For firms operating in a stable environment, a more traditional and structured organizational format, such as a bureaucratic or hierarchical structure, may be suitable. Such structures tend to have clear, defined roles and responsibilities, with established procedures that lend themselves to stability and consistency in operations.
On December 31, 2020, Kingbird Company had $1,216,000 of short-term debt in the form of notes payable due February 2, 2021. On January 21, 2021, the company issued 25,500 shares of its common stock for $42 per share, receiving $1,071,000 proceeds after brokerage fees and other costs of issuance. On February 2, 2021, the proceeds from the stock sale, supplemented by an additional $145,000 cash, are used to liquidate the $1,216,000 debt. The December 31, 2020, balance sheet is issued on February 23, 2021. Show how the $1,216,000 of short-term debt should be presented on the December 31, 2020, balance sheet. (Enter account name only and do not provide descriptive information.)
Answer and Explanation:
The presentation of short term debt is presented below:
Kingbird Company
Partial Balance sheet
December 31, 2020
Particulars Amount ($)
Current Liabilities :
Notes Payable $145,000
Long term Debt :
Notes Payable 1,216,000
Notes Payable is come from is
= $1,216,000 - $1,071,000
= $145,000
The company's total notes payable is $1,216,000, out of which $1,071,000 are shown as a issue of common stock and $145,000 are liquidate using cash.
McNeely entered into a contract with Wagner to pay $250,000 as a lump sum for all timber present in a given area that Wagner would remove for McNeely. The contract estimated that the volume in the area would be 780,000 board feet. Wagner also had provisions in the contract that made no warranties as to the amount of lumber and that he would keep whatever timber was not harvested if McNeely ended the contract before the harvesting was complete. The $250,000 was to be paid in three advances. McNeely paid two of the three advances but withheld the third payment and ended the contract because he said there was not enough timber. Wagner filed suit for the remaining one-third of the payment. McNeely said Wagner could not have the remaining one-third of the payment as well as the transfer; he had to choose between the two remedies. Is he correct
Final answer:
McNeely's assertion that Wagner must choose between remedies after a contractual breach is not automatically correct and depends on the contract and law. Contract terms and legal principles determine whether Wagner can claim both the unpaid payment and retain the timber, reflecting value-added steps from logger to construction.
Explanation:
The claim made by McNeely that Wagner must choose between the remaining one-third payment and taking ownership of the unharvested timber is not necessarily correct. This judgment would depend on the specific terms of the contract they entered and the applicable law governing such contracts. Typically, when a party breaches a contract, it can result in the other party being entitled to remedies that may include damages, specific performance, or restitution, among others.
The contract described appears to have a provision that allowed Wagner to keep any timber not harvested if the contract was terminated early by McNeely, which might suggest that Wagner could be entitled to the remaining third of the payment as well as retain the timber as a form of liquidated damages or agreed compensation for breach. However, if the contract terms are silent on the remedy of payment upon early termination by McNeely, a court's interpretation of the agreement and principles of contract law would determine Wagner's entitlement.
Value is added at each stage in the production and sale of timber, as reflected in the incremental price increases from the logger to the mill to the construction firm. Compensation for property use and the rights related to agreements for timber removal are crucial to understand in such a context.
Johnson Bakery agrees to supply Higgen’s Restaurant with all the bread that it requires for one year. When a shortage causes the price of wheat to rise sharply, Johnson can continue supplying bread only at a much higher price. The parties agree to modify the contract so that the buyer will pay a higher price. The change is
a. enforceable as long a the parties voluntarily agreed to the modification.
b. uneforceable due to the preexisting duty rule
c. unenforceable because Johnson is taking advantage of a shortage to boost profits
d. unenforceable because a valid contract already exists
Answer:
The correct answer to the following question will be "Option A".
Explanation:
It is indeed a legally enforceable arrangement among two or even more, individuals, where it would be usually made up through one party, can make a bid, as well as the other party signaling approval. The parties 'agreements describe there rights & obligations.The parties have agreed to amend the deal to make the seller charge a larger amount. The move is enforceable however soon as when the parties willingly consent to either the amendment.The other solutions have no relation with the specified scenario. So choice A is the right solution to that.
Final answer:
A voluntarily agreed upon modification of a contract due to an unforeseen increase in costs, like the one between Johnson Bakery and Higgen’s Restaurant, is generally enforceable. The agreement must be made in good faith and without coercion to align with the Uniform Commercial Code (UCC) governing commercial transactions.
Explanation:
When Johnson Bakery and Higgen’s Restaurant agree to modify their contract due to the unforeseen rise in the cost of wheat, this change is generally considered enforceable as long as the modification is made voluntarily by both parties. This is because both parties are entering into the new agreement freely, acknowledging the change in circumstances that affects the performance of the original contract. However, it's important to note that under the Uniform Commercial Code (UCC), which governs commercial transactions, a contract for the sale of goods can be modified without new consideration if the modification is made in good faith. This assumes that such modifications are not a result of coercion or unfair pressure.
Marshmallow Systems is a start-up equipment manufacturer, and its main product is a smartphone. The firm sells the smartphone at cost, that is, the price is exactly the actual cost of production. The firm's intention behind pricing the phone this way is to build its customer base. In the context of pricing models, the strategy used by Marshmallow Systems is the:________
Answer: Loss leader strategy
Explanation:
A loss leader is one of the type of pricing based strategy in which the various types of products and the services are offering at low price in the market for the purpose of attracting the new consumers or users.
The main objective of the loss leader strategy is that the brands and products are offers at below its actual market cost due to the competition level in the market and to attract the consumers towards their business.
According to the given question, the Marshmallow system is one of the start up manufacturing company and the main product business of this company is smartphone. So, on the basis of the given context of the pricing model the Marshmallow company is using the loss leader strategy for attract the users.
Therefore, Loss leader strategy is the correct answer.
Final answer:
Marshmallow Systems employs a penetration pricing strategy by selling its smartphone at the production cost to build its customer base, contrasting with markup or premium pricing strategies. This approach aims to quickly gain market share in a competitive environment, prioritizing customer acquisition over immediate profits.
Explanation:
The strategy used by Marshmallow Systems, where the firm sells its main product, a smartphone, at the actual cost of production to build its customer base, is known as penetration pricing. This pricing strategy is often employed to enter the market by setting low prices to attract customers and develop or expand the market presence. Unlike other pricing models that may involve markups or varying prices for different customers, Marshmallow Systems' approach aims to penetrate the competitive market quickly by making their product financially accessible, thereby gaining market share before possibly adjusting prices in the future to achieve profitability.
Such a strategy contrasts with markup pricing, where firms set prices higher than the marginal cost to make a profit, or premium pricing, used by companies that position their offerings as high-end products. Penetration pricing is particularly useful in markets with fierce competition and where consumer adoption is critical to a new company's success. By aligning the price with the production cost, Marshmallow Systems ensures the focus remains on customer acquisition over immediate profit generation, setting the stage for future financial strategies.
Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores. Debit Credit Accounts receivable-trade 709 Building and equipment 923 Cash-checking 41 Interest receivable 43 Inventory 20 Land 150 Notes receivable (long-term) 495 Petty cash funds 9 Prepaid rent 35 Supplies 8 Trademark 55 Accounts payable-trade 633 Accumulated depreciation 71 Additional paid-in capital 483 Allowance for uncollectible accounts 15 Cash dividends payable 28 Common stock, at par 12 Income tax payable 62 Notes payable (long-term) 876 Retained earnings 282 Deferred revenues 26 TOTALS 2,488 2,488 What is the amount of working capital for Symphony
Answer:
$101
Explanation:
The computation of the working capital is shown below:
As we know that
Working capital = Current assets - current liabilities
where,
Current assets = Account receivable + checking cash + interest receivable + inventory + petty cash funds + prepaid expense + supplies
= $709 + $41 + $43 + $20 + $9 + $35 + $8
= $865
And, the current liabilities is
= Account payable of trade + Allowance for uncollectible accounts + cash dividend payable + income tax payable + deferred revenues
= $633 + $15 + $28 + $62 + $26
= $764
So, the working capital is
= $865 - $764
= $101
Final answer:
The working capital for Symphony Stores is calculated by subtracting the total current liabilities ($749 million) from the total current assets ($865 million), resulting in a working capital of $116 million.
Explanation:
To calculate the working capital for Symphony Stores, we need to consider the company's current assets and current liabilities. Working capital is defined as the difference between current assets and current liabilities, and it represents the short-term liquidity and operational efficiency of a business.
According to the provided balance sheet, the current assets of Symphony Stores can be calculated by adding together Cash-checking ($41 million), Accounts receivable-trade ($709 million), Interest receivable ($43 million), Inventory ($20 million), Petty cash funds ($9 million), Prepaid rent ($35 million), and Supplies ($8 million). This results in total current assets of $865 million.
The current liabilities can be summed up by adding Accounts payable-trade ($633 million), Cash dividends payable ($28 million), Income tax payable ($62 million), and Deferred revenues ($26 million), yielding total current liabilities of $749 million.
To find the working capital, subtract the total current liabilities from total current assets: $865 million - $749 million = $116 million working capital.
In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $186,000 of the fixed manufacturing expenses and $106,000 of the fixed selling and administrative expenses are avoidable if product L07E is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be:
Answer:
-$173,000
Explanation:
The computation of the financial advantage or disadvantage is shown below:
But before that first we have to find the net operating income
Sales $830,000
Less:Variable expenses -$365,000
Contribution margin $465,000
Less:Fixed manufacturing expenses -$291,000 477
Less:Fixed selling and administrative expenses -$166,000 272
Net operating income $8,000
Now
Fixed manufacturing expense unavoidable is
= $291,000 - $186,000
= $105,000
And,
Fixed selling and administrative expense unavoidable is
= $166,000 - $106,000
= $60,000
Total expenses unavoidable=$266000
Hence financial disadvantage is
= -$105,000 -$60,000 -$8,000
= -$173,000
Final answer:
The financial advantage or disadvantage for the company of eliminating product L07E can be calculated by subtracting the avoidable fixed expenses from the company's total fixed expenses.
Explanation:
The financial advantage or disadvantage for the company of eliminating product L07E can be calculated by subtracting the avoidable fixed expenses from the company's total fixed expenses. The avoidable fixed expenses for manufacturing are $186,000 and for selling and administrative are $106,000. Therefore, the financial advantage (disadvantage) of eliminating product L07E would be:
Total fixed expenses - Avoidable fixed expenses
$186,000 (manufacturing) + $106,000 (selling and administrative)
= $292,000
So, the company would have a financial advantage of $292,000 if product L07E is discontinued for the upcoming year.
Which of these is NOT an example of price discrimination?
a. college book publishers giving a price discount to faculty airlines
b. charging less for people who stay over on a Saturday night colleges
c. giving some students more financial aid than they do other students
d. gas stations charging more for gasoline with higher octane and additional additives
Answer:
Giving some students more financial aid than they do other students.
Explanation:
Price discrimination can be defined as a pricing strategy whereby customers are charged different price for a similar good or service. In price discrimination, a certain group of customers may be asked to pay a high amount of money while another group will pay a lesser amount.
Price discrimination makes it possible for low income customers to purchase goods at a cheaper price, this is usually achieved from the collection of coupons.
Price discrimination also lowers congestion in the market as it helps to control the demand of a product.
Matching Exercise: Match the type of bond to its definition. a)The Catastrophe Bond: b)A Warrant Bond: c)An Income bond: d)A Convertible bond: e)A Put bond:
Answer:
Match the type of bond to its definition.
a)The Catastrophe Bond:
This bond is security emitted by a company to raise funds in the form of debt because it suffered a natural disaster and needs liquidity.
b)A Warrant Bond:
This type of bond is emitted by a company to favor the holder for the right to buy a stock at a price that will be decided by the company at the moment of the warrant bond expedition. This price is not linked to the market stock price at the moment of execution.
c)An Income bond:
This security is a bond that compromises the company to pay the established amount if the company makes enough earnings to issue the fraction established of the debt,
d)A Convertible bond:
This type of security provides a stable payment for the holder as payment for the lending of a certain amount of money. However, it has a special right to be converted in stock if the holder wants it.
e)A Put bond:
This type of security compromises the issuer to buy a certain stock from the holder at a certain price with a certain duration.
Explanation:
The reasons to back this answer are:
a)The Catastrophe Bond:
This bond is security emitted by a company to raise funds in the form of debt because it suffered a natural disaster and needs liquidity. This is a very effective bond to issue debt in any unexpected event.
b)A Warrant Bond:
This type of bond is emitted by a company to favor the holder for the right to buy a stock at a price that will be decided by the company at the moment of the warrant bond expedition. This price is not linked to the market stock price at the moment of execution. This is a very good bond to reward management for good results.
c)An Income bond:
This security is a bond that compromises the company to pay the established amount if the company makes enough earnings to issue the fraction established of the debt, This is a very good bond to not compromise to use a payment of a debt, and keeping it outside a bad scenario for the company.
d)A Convertible bond:
This type of security provides a stable payment for the holder as payment for the lending of a certain amount of money. However, it has a special right to be converted into stock if the holder wants it. This bond is very good to increase the stocks in the market and reduce the sare price to pump it.
e)A Put bond:
This type of security compromises the issuer to buy a certain stock from the holder at a certain price with a certain duration. This type of bond is very good to sell short the position of a company with bad performance.
Final answer:
A Catastrophe Bond is a high-yield instrument for catastrophe risks; a Warrant Bond includes stock purchase rights; an Income Bond pays interest based on profitability; a Convertible Bond can be exchanged for stock; and a Put Bond may be sold back to the issuer before maturity.
Explanation:
To match the type of bond to its definition:
a) The Catastrophe Bond: A high-yield debt instrument designed to raise money in case of a catastrophe such as an earthquake or a hurricane. The issuer is generally an insurance company looking to pass on potential risks to investors. Bonds are forfeited to pay for the losses if a catastrophe occurs.b) A Warrant Bond: This bond includes warrants which give the holder the right to purchase the company's stock at a specific price within a certain timeframe.c) An Income bond: Unlike regular bonds, income bonds pay interest only if the issuing company is profitable, thus the payments can be suspended without leading to default.d) A Convertible bond: A type of bond that can be converted into a predetermined number of the company's equity stock at certain times during its life, usually at the discretion of the bondholder.e) A Put bond: A bond that allows the holder to force the issuer to repurchase the security at specified dates before maturity.The terms risk, investment considerations, corporate bond, municipal bond, savings bond, Treasury note, Treasury bond, Treasury bill, Individual Retirement Account (IRA), capital market, money market, primary market, and secondary market are essential to understanding the various types of bonds and their respective markets.
Regulatory focus theory suggests that ____.consumers will react differently depending on which broad set of motives is most inconspicuouswhen prevention-focused motives are less salient, consumers seek to avoid negative outcomeswhen promotion-focused motives are less salient, consumers seek to gain positive outcomesconsumers will react differently depending on which broad set of motives is most salientwhen promotion-focused motives are most salient, consumers are less eager and less risk-seeking decision makers
Answer:
The correct answer is consumers will react differently depending on which broad set of motives is most salient.
Explanation:
All of us as consumers always try to implement different strategies when obtaining a product.
This has an impact on the reasons why people react to a stimulus and make decisions when choosing a product.
Consumers can react in various ways, positively or negatively. Regulatory focus theory suggests that consumers will react differently depending on which broad set of motives is most salient.
That is to say that the decision of a consumer when choosing a product will be positively influenced if the reasons are more prominent, since they will appeal to their emotions and their decision will be made quickly and accurately.
Palante actually produced 8,000 units. The controller decided to compare their actual results to their budget. The following budget information is available: Expected Costs and Selling Price Based on 5,000 units: Variable manufacturing costs per unit $50 Fixed manufacturing costs per unit $20 Selling price per unit $80 Expected production level 5,000 units In the flexible budget, what is the total manufacturing cost? Group of answer choices $560,000 $80,000 $400,000 $500,000 $350,000
Answer:
$500,000
Explanation:
The computation of total manufacturing cost is shown below:-
Flexible Budget Manufacturing Cost = Variable cost of Manufacturing at actual units + Estimated Fixed Manufacturing Costs at the budgeted Units
= (8,000 Units × $50 per unit) + (5,000 Units × $20 per unit)
= 400,000 + 100,000
= $500,000
So, for computing the Flexible Budget Manufacturing Cost we simply applied the above formula.