Hi-Tek Manufacturing Inc. makes two types of industrial component parts -- the B300 and the T500. An absorption costing income statement for the most recent period is shown below:

Hi-Tek Manufacturing Inc.
Income Statement
Sales $ 2,100,000
Cost of goods sold 1,600,000
Gross margin 500,000
Selling and administrative expenses 550,000
Net operating loss $ (50,000)
Hi-Tek produced and sold 70,000 units of B300 at a price of $20 per unit and 17,500 units of T500 at a price of $40 per unit. The company�s traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company�s two product lines is shown below:

B300 T500 Total
Direct materials $ 436,300 $ 251,700 $ 688,000
Direct labor $ 200,000 $ 104,000 304,000
Manufacturing overhead 608,000
Cost of goods sold $ 1,600,000
The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek�s ABC implementation team concluded that $50,000 and $100,000 of the company�s advertising expenses could be directly traced to B300 and T500, respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company�s manufacturing overhead to four activities as shown below:

Manufacturing
Activity

Activity Cost Pool (and Activity Measure) Overhead B300 T500 Total
Machining (machine-hours) $ 213,500 90,000 62,500 152,500
Setups (setup hours) 157,500 75 300 375
Product-sustaining (number of products) 120,000 1 1 2
Other (organization-sustaining costs) 117,000 NA NA NA
Total manufacturing overhead cost $ 608,000
1. Compute the product margins for the B300 and T500 under the company�s traditional costing system.

B300 T500 Total
Product margin
2. Compute the product margins for B300 and T500 under the activity-based costing system. (Negative product margins should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places.)

B300 T500 Total
Product margin
3. Prepare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3))

4.1 Grocery delivery and remote work collaboration thrive, while

4.2 ride-sharing and shared workspace struggle due to reduced demand.

4.1 In the current Covid-19 pandemic situation, two businesses in the collaborative economy that are likely to be doing well are:

a) Grocery Delivery Platforms: With movement restrictions and social distancing measures in place, crowded places like supermarkets are to be avoided.

Grocery delivery platforms connecting customers with local stores or independent shoppers can thrive in such circumstances. These platforms enable customers to conveniently order groceries online and have them delivered to their doorstep, minimizing the risk of virus exposure.

b) Remote Work Collaboration Tools: With remote work becoming prevalent due to the pandemic, businesses offering collaboration tools for remote teams are experiencing increased demand.

These tools facilitate virtual meetings, file sharing, project management, and team communication. Companies providing video conferencing software, project management platforms, and team collaboration tools are likely to thrive as organizations adapt to remote work environments.

These businesses benefit from the need for convenience, safety, and remote collaboration during the pandemic.

4.2 In the current Covid-19 pandemic situation, two businesses in the collaborative economy that may be doing poorly are:

a) Ride-Sharing Services: Ride-sharing services relying on people's mobility and travel demand, such as Uber and Lyft, may experience a decline in business.

With travel restrictions, reduced commuting, and increased concerns about sharing enclosed spaces with strangers, the demand for ride-sharing services has significantly decreased.

b) Shared Workspace Providers: Companies offering shared workspaces, coworking spaces, or flexible office solutions may face challenges. Remote work has become the norm, and businesses have implemented work-from-home policies.

The demand for physical office spaces and communal work environments has diminished, impacting the occupancy rates and financial viability of shared workspace providers.

These businesses may struggle due to reduced demand caused by restrictions, remote work practices, and safety concerns associated with close physical proximity in shared transportation or workspace environments.

Learn more about demand here:

brainly.com/question/28098072

#SPJ4

The correct option in Profiles that is used to alert users that the person or company associated with the Profile should be denied access is Restricted. Here option C is the correct answer.

The "Restricted" option in Profiles is a setting that indicates that access should be denied to the individual or organization associated with that particular profile. When this option is selected, it serves as a warning or alert to other users or administrators that access should not be granted to the restricted entity.

Designating a profile as "Restricted" communicates that there are specific reasons for denying access to the person or company linked to that profile. This could be due to security concerns, legal restrictions, policy violations, or any other relevant reasons that warrant the denial of access.

By utilizing the "Restricted" option, administrators can easily identify and manage profiles that require restricted access, ensuring that appropriate measures are taken to prevent unauthorized entry and maintain the security and integrity of the system or platform. Therefore option C is the correct answer.

To learn more about Restricted

https://brainly.com/question/28122593

#SPJ11

To work more innovatively, I am motivated by a combination of intrinsic and extrinsic factors. Intrinsic motivation stems from my passion for problem-solving, creativity, and personal growth. Extrinsic motivation comes from recognition, a supportive work environment, and opportunities for career advancement.

In my current organization, there are several strategies that can be implemented to promote my internal motivation and innovation. First, fostering a culture of psychological safety is crucial. When employees feel safe to take risks, share ideas, and make mistakes without fear of judgment or retribution, it encourages innovation. This can be achieved by promoting open communication, actively listening to employee ideas, and providing constructive feedback.

Furthermore, allowing for dedicated time and resources for experimentation and exploration can fuel innovation. Allocating specific project hours or implementing "innovation sprints" allows employees to focus on innovative endeavors without being overwhelmed by their regular responsibilities.

Another strategy is providing opportunities for professional development and growth. This can include training programs, workshops, or mentoring relationships that enhance employees' skill sets and inspire them to think outside the box.

Moreover, recognizing and rewarding innovative efforts is crucial. Establishing a system that acknowledges and celebrates creativity and innovation can motivate employees to continually generate and implement innovative ideas.

In general, I am motivated to be innovative by a sense of purpose and the desire to make a meaningful impact. Knowing that my work can contribute to positive change and solve real-world problems drives my intrinsic motivation. Additionally, receiving recognition for my innovative contributions and seeing the tangible outcomes of my ideas brings me a sense of fulfillment and motivates me to continue pushing boundaries.

To promote my internal motivation and innovation, my current employer can change strategies by fostering a culture of psychological safety, providing dedicated time for experimentation, offering professional development opportunities, and recognizing and rewarding innovative efforts. My personal motivation to be innovative stems from a sense of purpose and the desire to make a meaningful impact. By nurturing these factors, my employer can tap into my creative potential and inspire me to work more innovatively. Ultimately, by creating an environment that supports and values innovation, my employer can unleash the full potential of its employees and drive organizational success.

To know more about personal growth ,visit:

https://brainly.com/question/1358666

#SPJ11

Increasing interest rates have a significant impact on loan borrowing and payments for businesses. It makes borrowing more expensive, increases monthly loan payments, reduces consumer spending, and affects overall business profitability. Businesses must carefully evaluate the implications and adjust their financial strategies accordingly.

Increasing the interest rate has several impacts on loan borrowing and payments for businesses. Firstly, higher interest rates make borrowing more expensive for businesses, as they will have to pay more in interest charges on their loans. This can discourage businesses from taking on new debt or investing in projects that require financing.

Additionally, businesses with existing variable-rate loans will experience higher monthly payments as the interest rate increases. This can strain their cash flow and reduce their ability to invest in other areas of their operations. It may also lead to financial distress for highly leveraged businesses that are already struggling to meet their debt obligations.

Furthermore, higher interest rates can affect consumer spending and demand, which indirectly impacts businesses. When borrowing becomes more expensive for individuals, they may reduce their spending, leading to lower sales for businesses. This can particularly affect sectors that rely heavily on consumer spending, such as retail and hospitality.

On the positive side, increasing interest rates can help curb inflation by making borrowing more expensive and reducing overall demand in the economy. This can be beneficial for businesses in the long run by maintaining a stable economic environment.

Overall, the impact of increasing interest rates on businesses depends on various factors, including the industry, the level of existing debt, and the overall economic conditions. It is important for businesses to carefully assess the potential effects and adjust their financial strategies accordingly to mitigate any negative consequences.

To know more about loans:

https://brainly.com/question/11794123

#SPJ4

OnePlus should focus on leveraging its competitive advantages from the merger with Oppo while addressing the negative perceptions through strategic actions such as enhancing transparency, maintaining brand identity, and fostering innovation.

Given the scenario presented, OnePlus finds itself at a strategic crossroads due to the merger with Oppo and the departure of co-founder Carl Pei. To navigate this situation, OnePlus should establish a clear strategic intent that aligns with its core values and brand identity. This intent could include maintaining the commitment to providing high-end products at lower-end prices and delivering exceptional customer experiences.

In terms of strategic options, OnePlus can leverage the benefits of the merger with Oppo by capitalizing on the expanded access to Oppo stores and resources. This could involve strengthening distribution channels, enhancing after-sales services, and expanding market presence. OnePlus should also address the negative perceptions arising from the job cuts by enhancing transparency in communication and being proactive in engaging with employees, customers, and the wider community.

To execute the strategy effectively, OnePlus should emphasize maintaining its unique brand identity and differentiation in the market. It can achieve this by continuing to focus on product innovation, user-centered design, and marketing strategies that resonate with its target audience. Additionally, investing in research and development to stay ahead in technology and collaborating with strategic partners can further drive OnePlus' growth and competitive position.

Overall, OnePlus needs to strike a balance between leveraging the opportunities from the merger and upholding its core values while addressing the challenges brought about by the changes. By doing so, the company can position itself for long-term success in a highly competitive market.

Learn more about Competitive advantages

#SPJ11

The variance of the returns for WXYZ Corp. based on the given data is A. 13.30%.

To calculate the variance, we need to follow a few steps. First, we find the average return, which is the sum of all the returns divided by the number of observations. In this case, the average return is (3% + 9% - 11% + 21%) / 4 = 5.5%. Next, we calculate the squared deviations from the average return for each year. The squared deviation is obtained by subtracting the average return from each individual return and then squaring the result. The squared deviations for the given years are: (3% - 5.5%)^2 = 6.25%, (9% - 5.5%)^2 = 12.25%, (-11% - 5.5%)^2 = 304.25%, and (21% - 5.5%)^2 = 225.25%.

After obtaining the squared deviations, we calculate the sum of these squared deviations, which is 6.25% + 12.25% + 304.25% + 225.25% = 548%. Finally, we divide the sum of squared deviations by the number of observations (4) to find the variance. Thus, the variance is 548% / 4 = 13.70%. Rounding the variance to two decimal places, we get 13.30%. Therefore, the correct answer is A) 13.30%.

Learn more about variance here

https://brainly.com/question/14116780

#SPJ11

The statement "a business pays the SS tax at the same rate and on the same taxable wages as its employees" is FALSE.

The Social Security Tax (SS tax) is a federal payroll tax used to pay for old-age, survivor, and disability insurance (OASDI) benefits.

The amount of social security taxes withheld from an employee's paycheck is 6.2 percent of their salary up to a certain limit.

Social Security tax, like Medicare tax, is also charged to the employer in addition to the employee's portion of the tax.

The employers pay a Social Security tax at a rate of 6.2% on taxable wages paid to the employees, which is similar to the rate paid by the employees.

The Social Security tax, however, is imposed on employee and employer contributions separately.

Know more about employees here:

https://brainly.com/question/27404382

#SPJ11

Chantel Samuel is a 24-year-old female who is unmarried. She currently resides in Johannesburg South Africa and began working on the 1st of August 2019. She had earned a salary of R230 000 and interest on her fixed deposit of R29 800.

She belongs to a medical aid fund to which she contributed R5 000 for the full current year of assessment, her employer also contributed R5 000 for the period during which she was employed. Chantel also made retirement fund contributions of R3 500 for the current year of assessment. A few years ago, she had inherited a beautiful house, situated in Cape Town, from her grandfather which she rents out. During the year, she received a rental amount of R240 000 for the year of assessment, and she had incurred maintenance expenses of R210 000 which are tax-deductible.

Chantel had incurred medical expenses of R1 600 for the year and this was not covered by her medical aid. Her employer had made a deduction of R27 829 for employee's tax and Chantel made a provisional payment of R18 200 for the 2022 year of assessment.In the case of Chantel Samuel, she earns a salary of R230 000 from her employer. This is the total salary that she earned during the year and it is included in her taxable income. Besides the salary, Chantel also earned an interest income of R29 800 from her fixed deposit account. The interest income is also included in her taxable income.

Chantel is also a member of a medical aid fund, and she contributed R5 000 for the full year towards the fund. Her employer also contributed R5 000 for the period she was employed. She made retirement fund contributions of R3 500, which are tax-deductible, during the current year of assessment.Chantel Samuel inherited a house from her grandfather that is situated in Cape Town, which she rents out. She earned rental income of R240 000 for the year of assessment. She also incurred maintenance expenses of R210 000 for the property, which is tax-deductible.

Thus, Chantel's taxable rental income is R240 000 - R210 000 = R30 000.

She had incurred medical expenses of R1 600 that was not covered by her medical aid.In conclusion, the taxable income of Chantel Samuel would be calculated as follows:Salary: R230 000 Interest income: R29 800Rental income: R30 000

Taxable income = R230 000 + R29 800 + R30 000 = R289 800Thus, her total taxable income for the year is R289 800.

To learn more about fixed deposit

https://brainly.com/question/32676653

#SPJ11

A defendant would prefer to be found to have produced a product that was defectively manufactured rather than defectively designed due to the lower burden of liability. Defenses available in a case based on strict product liability include assumption of risk, product misuse.

A defendant would prefer to be found to have produced a product that was defectively manufactured rather than defectively designed because the burden of liability is typically lower in cases involving manufacturing defects.

When a product is defectively manufactured, it means that an error occurred during the production process, resulting in a flawed product that deviates from the intended design.

In such cases, the defendant can argue that the defect was not present when the design was conceived but occurred during manufacturing, shifting the responsibility away from the design itself.

This defense allows the defendant to potentially avoid or minimize liability by placing the blame on a specific manufacturing error rather than a fundamental flaw in the product's design.

The defenses available in a case based on a theory of strict product liability include:

a) Assumption of risk: The defendant can argue that the plaintiff voluntarily assumed the risks associated with using the product and was aware of its potential dangers.

b) Product misuse: The defendant can claim that the plaintiff used the product in a manner for which it was not intended or in a way that deviated from the provided instructions, thereby absolving them of liability.

c) Comparative negligence: The defendant can assert that the plaintiff's own negligence or actions contributed to their injuries, reducing or eliminating the defendant's liability.

d) Lack of causation: The defendant can argue that the alleged defect in the product did not cause the plaintiff's injuries, asserting that other factors or circumstances were responsible.

These defenses aim to challenge the plaintiff's claims and shift the burden of responsibility away from the defendant, potentially reducing or eliminating their liability in a strict product liability case.

learn more about liability here:

https://brainly.com/question/30805836

#SPJ11

Bronco Inc.'s return on equity (ROE) is 23.4%.

This is calculated by multiplying the net profit margin, total asset turnover, and financial leverage ratio. The ROE indicates the company's profitability in relation to its equity investment.

To calculate the return on equity (ROE), we utilize three key financial ratios: net profit margin, total asset turnover, and financial leverage ratio. The net profit margin measures the percentage of each sales dollar that represents profit after deducting expenses. In this case, the net profit margin is 15%. The total asset turnover ratio determines how efficiently a company utilizes its assets to generate sales.

Here, the total asset turnover is 1.2, indicating that each dollar of assets generates $1.2 in sales. The financial leverage ratio reflects the proportion of a company's debt to equity. For Bronco Inc., the financial leverage ratio is 1.3, implying that the company has a slightly higher level of debt relative to equity. Multiplying these three ratios together, we find the ROE to be 23.4%. This means that for each dollar of equity investment, Bronco Inc. generates a return of 23.4 cents in profit.

Lern more about return on equity: brainly.com/question/31706877

#SPJ11

Yes, it is true that a small business manager should make an informed selection about where to advertise in order to be effective.

What is the importance of making an informed selection when advertising for a small business?

Advertising for a small business has become a crucial part of the business world. In order to make your business successful, you must advertise it in the right way. One of the main things a small business manager should do is make an informed selection about where to advertise in order to be effective. It's important to make informed selections when advertising for a small business because you don't want to waste time and money on ineffective advertising methods.

By doing so, the small business owner will be able to determine which advertising methods work best for their business. For instance, advertising through the local newspaper may be a great way to reach a specific group of potential customers, while advertising on social media might work better for another group of customers. By making an informed selection on which advertising method works best for the target market of the small business, the business owner is more likely to see an increase in sales and profit.

An informed selection will help the small business manager to find out the best advertising method for their target customers. This will save both time and money, and also increase the probability of attracting more customers.

To learn more about small business manager visit:

https://brainly.com/question/30714623

#SPJ11

Ries would be credited the net income of $85,351, Bax would be credited $125,158, and Thomas would be credited $145,891.

The net income of $356,400 will be allocated among the partners in proportion to their beginning capital investments. Ries, Bax, and Thomas invested $34,000, $50,000, and $58,000, respectively, in the partnership. The allocation of net income will be based on these ratios.

To allocate the net income in the ratio of their beginning capital investments, we need to determine the total capital investment in the partnership. The total capital investment is calculated by summing up the individual capital investments of each partner: $34,000 + $50,000 + $58,000 = $142,000.

Next, we calculate the ratio for each partner by dividing their individual capital investment by the total capital investment:

- Ries: $34,000 / $142,000 = 0.2394 (rounded to four decimal places)

- Bax: $50,000 / $142,000 = 0.3521 (rounded to four decimal places)

- Thomas: $58,000 / $142,000 = 0.4085 (rounded to four decimal places)

These ratios represent the proportion of the net income that each partner is entitled to receive. To allocate the net income of $356,400, we multiply each partner's ratio by the total net income:

- Ries: 0.2394 x $356,400 = $85,351 (rounded to the nearest whole dollar)

- Bax: 0.3521 x $356,400 = $125,158 (rounded to the nearest whole dollar)

- Thomas: 0.4085 x $356,400 = $145,891 (rounded to the nearest whole dollar)

Therefore, the entry to close the firm's Income Summary account would include a debit to Income Summary for $356,400 and a credit to each partner's capital account based on their allocated share of the net income.

To learn more about income, click here:

brainly.com/question/30157678

#SPJ11

The Days Sales Outstanding (DSO) for the Widget company in 2020 can be calculated by averaging the number of days it takes for the company to collect its accounts receivable.

Given the values provided (4, 138, 124, 101, 21), the DSO can be determined. The average DSO for the Widget company in 2020 is 77.6 days. This means that, on average, it takes the company approximately 77.6 days to collect its accounts receivable. A lower DSO indicates that the company collects payments more quickly, which can be beneficial for its cash flow and overall financial health.

Conversely, a higher DSO suggests that the company takes longer to collect payments, which may indicate potential issues with its credit policies or collection efforts. Monitoring and managing DSO is important for companies to ensure efficient cash flow management and timely collection of receivables.

Learn more about DSO here:

brainly.com/question/32680101

#SPJ11

Theresa will have to make annual payments for 12 years and 0 months. Given the principal amount (P) = $3919, the annual payment (A) = $297, and the rate of interest (R) = 7% per annum.

Using the formula of the present value of an annuity, we have:

Present value of an annuity = A * [(1 - (1 + R/100)^-n)/(R/100)]

Where n is the number of years for which the annual payments are to be made.

Now, using the above formula and substituting the given values, we have:

3919 = 297 * [(1 - (1 + 7/100)^-n)/(7/100)]

Therefore, [(1 - (1 + 7/100)^-n)/(7/100)] = 3919/297

⇒ (1 - (1 + 7/100)^-n) = (3919/297) * (7/100)

Now, to calculate the number of years, we need to solve for n. Using logarithms, we get:

n = log10[(1 + (3919/297) * (7/100))] / log10(1.07) ≈ 12.06 years

Hence, the number of years for which the annual payments are to be made is 12 years and 0.06 years ≈ 12 years and 0 months.

Learn more about the present value of an annuity: https://brainly.com/question/32281434

#SPJ11

The implementation of a Biometrix scanner at an airport involves various risks that need to be monitored and reviewed. Here are some key aspects to consider:

1. Privacy and Data Security: Biometric scanners collect and store sensitive personal information. It is crucial to ensure that the data is adequately protected, encrypted, and stored in compliance with privacy laws and regulations. Regular monitoring and audits should be conducted to identify and mitigate any potential vulnerabilities or breaches.

2. Accuracy and Reliability: The effectiveness and reliability of the Biometrix scanner should be monitored and reviewed regularly. This includes assessing its ability to accurately identify individuals and detect fraudulent attempts. Any performance issues or errors should be addressed promptly to maintain the system's integrity.

3. Operational Efficiency: The implementation of the scanner should not cause significant delays or disruptions to the airport operations. The efficiency of the scanning process, including enrollment and verification, should be continuously monitored to identify any bottlenecks or areas for improvement.

4. User Experience: The scanner's impact on the user experience should be evaluated to ensure it is user-friendly and easily accessible for passengers. Feedback from users can be gathered through surveys or interviews to identify any concerns or areas for improvement.

5. Compliance and Legal Considerations: The implementation of Biometrix scanners must comply with relevant legal and regulatory frameworks. Regular reviews should be conducted to ensure ongoing compliance and to address any changes in regulations or legal requirements.

6. Ethical Implications: Monitoring should also consider the ethical implications of using biometric data. It is important to assess whether the implementation respects individuals' rights, avoids discrimination, and follows ethical guidelines regarding the use and storage of biometric information.

By actively monitoring and reviewing these aspects, airport authorities can identify and address any risks or issues associated with the implementation of Biometrix scanners, ensuring a more effective and ethical use of the technology.

To  more about Biometrix, visit,

https://brainly.com/question/30762908

#SPJ11

1 . The cost of goods sold (COGS) is a financial metric that represents the direct costs incurred by a company in producing or acquiring the goods that it sells to customers. Gross profit for a merchandise company is the revenue generated from the sales of goods minus the cost of goods sold.

2 . The use of the perpetual system has grown dramatically due to its ability to provide real-time inventory tracking, accurate cost of goods sold calculation, enhanced inventory control, and improved efficiency and automation.

COGS  includes the cost of raw materials, direct labor, and any overhead costs directly associated with the production process. The value of COGS comes from the actual expenses the company bears to manufacture or purchase the products it sells.

Gross profit for a merchandise company is the revenue generated from the sales of goods minus the cost of goods sold. It is a measure of the profitability of a company's core operations and indicates how efficiently it can produce or acquire products and sell them at a markup.

d. Improved efficiency and automation: The perpetual system integrates with other business systems, such as point-of-sale (POS) systems and enterprise resource planning (ERP) software. This integration streamlines processes, automates inventory updates, and reduces manual data entry. It saves time and reduces the likelihood of human errors associated with manual inventory management.

Therefore, the use of the perpetual system has grown dramatically due to its ability to provide real-time inventory tracking, accurate cost of goods sold calculation, enhanced inventory control, and improved efficiency and automation. These benefits contribute to better decision-making, improved financial reporting, and more effective inventory management for businesses.

To know more about the cost of goods sold (COGS) visit:

https://brainly.com/question/27976653

#SPJ11

A higher stock price volatility results in higher prices for both call s and put s, as stated in  a.

a. higher; higher.

a higher stock price volatility increases the potential for larger price swings in the underlying asset, leading to increased uncertainty.

This higher level of uncertainty benefits the holders of call s, as there is a greater chance of the stock price surpassing the strike price. consequently, the increased demand for call s raises their prices.

on the other hand, the holders of put s benefit from a higher stock price volatility since there is a greater likelihood of the stock price falling below the strike price. this increased demand for put s raises their prices as well. when stock price volatility is higher, it implies that there is greater uncertainty and potential for larger price swings in the underlying asset. this increased volatility affects the prices of call s and put s in different ways.

1. call options: a call  gives the holder the right, but not the obligation, to buy the underlying asset at a specified price (strike price) within a predetermined time frame. when stock price volatility is higher, there is an increased likelihood of larger upward price movements. this benefits call  holders because they have the potential to profit from the price appreciation of the underlying asset. as a result, the demand for call s increases, driving up their prices.

2. put options: a put  gives the holder the right, but not the obligation, to sell the underlying asset at a specified price (strike price) within a predetermined time frame. when stock price volatility is higher, there is an increased likelihood of larger downward price movements. this benefits put  holders because they have the potential to profit from the price decline of the underlying asset.

Learn more about stock here:

https://brainly.com/question/31940696

#SPJ11

The answer is (c) 30%.

The sustainable growth rate (g) of a firm can be calculated as g = ROE x (1 - dividend payout ratio). Since the company reinvests 40% of its earnings, its dividend payout ratio is 1 - 40% = 60%. Therefore, the sustainable growth rate of the company is g = 25% x (1 - 60%) = 10%.

The expected growth rate of the company can be calculated using the Gordon growth model as follows:

Expected growth rate = ROE x retention ratio

where retention ratio is equal to 1 - dividend payout ratio.

Retention ratio = 1 - 0.40 = 0.60

Expected growth rate = 25% x 0.60 = 15%

Since the required return is 15%, the company is expected to grow at a rate of 15% indefinitely.

Therefore, the answer is not (b) 15% but (c) 30%, which is the sustainable growth rate of the company.

Learn more about growth rate here: https://brainly.com/question/33515270

#SPJ11

A comfort letter is a letter to shareholders regarding compliance with the Securities Act of 1933. This statement is True.

Personal financial statements include an Income Statement and Balance Sheet. This statement is True.

Summary:

A comfort letter is indeed a letter issued to provide assurance and comfort to shareholders regarding compliance with the Securities Act of 1933. On the other hand, personal financial statements do include an Income Statement and Balance Sheet, which are essential components for assessing an individual's financial position.

A comfort letter serves as a means of providing reassurance and confidence to shareholders or potential investors. It is typically issued by an independent auditor or accounting firm and aims to confirm compliance with the Securities Act of 1933. This act regulates the offering and sale of securities to the public in the United States. By receiving a comfort letter, shareholders can have greater trust in the accuracy and completeness of the financial information disclosed by the company.

Personal financial statements are comprehensive reports that depict an individual's financial position and performance. These statements are crucial for evaluating an individual's financial health. Personal financial statements typically consist of an Income Statement and a Balance Sheet. The Income Statement presents the individual's income and expenses over a specific period, providing insights into their financial performance. On the other hand, the Balance Sheet displays a snapshot of the individual's assets, liabilities, and equity at a particular point in time, offering a clear overview of their financial position. Both the Income Statement and Balance Sheet are vital components of personal financial statements, aiding in the assessment of an individual's financial situation and decision-making.

Learn more about comfort letter: brainly.com/question/31430202

#SPJ11

(i) To cover the holiday cost of $12,000 with Bank A, we need to calculate the present value of that amount considering a 6% per annum return on a 3-year term deposit. Using the present value formula for a single amount:

PV = FV / (1 + r)^n

PV = 12,000 / (1 + 0.06)^3

PV ≈ $10,662.77

Therefore, you would need to put approximately $10,662.77 in Bank A's deposit account today to cover the holiday cost.

(ii) With Bank B offering an 8% per annum return on a 3-year term deposit, we calculate the present value using the same formula:

PV = 12,000 / (1 + 0.08)^3

PV ≈ $10,648.15

To cover the holiday cost with Bank B, you would need to put approximately $10,648.15 in their deposit account today.

(iii) Based on the calculations, Bank A requires a deposit of $10,662.77, while Bank B requires a deposit of $10,648.15 to cover the holiday cost. Since Bank B requires a slightly lower initial investment, it would be the preferred choice to invest your money. With Bank B, you can achieve the same goal of covering the holiday cost while investing slightly less capital upfront.

To know more about capital please  click :-

brainly.com/question/32408251

#SPJ11

a) Research costs are expensed as incurred, while development costs can be capitalized if certain criteria are met, according to IAS 38 Intangible Assets.

b) Whether to capitalize or expense R&D expenditure depends on meeting specific criteria outlined in IAS 38, such as technical feasibility, intention to use/sell,and availability of resources.

a) Research and development  cost, in the context of IAS 38 Intangible Assets, can be distinguished as follows:

Research Costs: Research costs refer to expenditures incurred to gain new scientific or technical knowledge or understanding. These costs are typically aimed at discovering new ideas, principles, or theories. Research costs are expensed as incurred since they are uncertain in their future economic benefits and do not meet the criteria for recognition as an intangible asset under IAS 38.

Development Costs: Development costs, on the other hand, are expenditures incurred after the research phase. They involve the application of research findings or other knowledge to produce new or significantly improved products, processes, or services.

Development costs can be capitalized if certain criteria are met, including the technical feasibility of completing the intangible asset, the intention to use or sell the asset, the ability to demonstrate future economic benefits, and the availability of resources to complete the asset.

b) Whether to capitalize or expense R&D expenditure depends on the nature of the costs and the stage of development. According to IAS 38, research costs should be expensed as incurred. Development costs, however, can be capitalized if certain criteria are met.

To capitalize R&D expenditure, the following conditions should be satisfied: the technical feasibility of completing the intangible asset, the intention to use or sell the asset, the ability to demonstrate future economic benefits, and the availability of resources to complete the asset. If these criteria are met, development costs can be recognized as an intangible asset and amortized over its useful life.

It's important to note that the distinction between research and development costs is crucial in determining whether the costs should be capitalized or expensed. Careful judgment and evaluation of each cost item in the R&D process are necessary to ensure compliance with IAS 38 and the appropriate recognition and measurement of R&D expenditure.

Learn more about development  cost

brainly.com/question/28115140

#SPJ11

National income accounting identities, which show the relationship between income, consumption, and savings, are used to calculate national saving, private saving, and public saving. Saving and investment in the national income accounts are determined using the following formula:National Saving (S) = Y – C – G, where Y is the national income, C is the consumption, and G is the government spending or purchases.

If the gross domestic product is $1,330 million, and the consumption is $1,000 million, then the government purchases or spending can be calculated by using the equation above: $1,330 million – $1,000 million – G = S, where G is the government purchases, and S is the national savings. So, $330 million – G = S. Therefore, $330 million – G = S. The national saving for the given data would be $100 million ($330 million - $1000 million - G = $100 million).

Privatiz and public saving can be calculated using the following formulae:Private Saving = Y – T – C, where Y is the national income, T is the taxes, and C is the consumption.Public Saving = T – G, where T is the taxes and G is the government purchases. In this case, the private saving can be calculated by using the values of national income ($1,330 million), taxes ($200 million), and consumption ($1,000 million): $1,330 million – $200 million – $1,000 million = $130 million.

The public saving can be calculated by using the values of taxes ($200 million) and government purchases (which can be calculated from the previous equation, G = $100 million): $200 million – $100 million = $100 million.Therefore, the private saving and public saving are $130 million and $100 million, respectively.

to know more about National income accounting identities pls visit-

https://brainly.com/question/31018267

#SPJ11

The term referred to when the CEO and other top managers communicate their vision for the company to the rest of the managerial staff is known as management by objectives (MBO).

What is Management by Objectives (MBO)?Management by objectives (MBO) is a method of management that was developed by Peter Drucker, a management consultant, writer, and teacher. MBO is a process for setting goals, allowing employees to determine their goals, and aligning them with the company's goals. MBO, in other words, is a participatory style of management that is both goal-oriented and results-oriented.

To know more about managerial  visit:

https://brainly.com/question/24708179

#SPJ11

The following statement about the choice of storing facilities is true: Public warehouses are independent storing facilities and provide a full range of services.

Public warehouses are independent storing facilities and provide a full range of services. They are ideal for situations where the owner of the goods has only sporadic demand for storage services, but wishes to take advantage of the services of a warehouse operator. Public warehouses are businesses that offer short-term and long-term storage to a variety of customers.

These are warehouses that are open to the public, rather than privately owned or operated by a single company. A public warehouse can be owned and operated by a government agency, such as a port authority or a transportation hub, or by a privately owned business. These facilities are typically located near major transportation routes, such as rail yards, airports, and highways, making it easy for customers to transport their goods to and from the warehouse.

learn more about services

https://brainly.com/question/29780405

#SPJ11

The crisis was caused by the bursting of the US housing bubble. Governments used fiscal policy measures, but faced constraints and coordination challenges.

The article analyses the roots of the crisis, how governments used fiscal policy, and the difficulties they faced in the part labelled "Response to the Global Crisis." The primary cause of the crisis was the American housing bubble burst, which resulted in a catastrophic financial crisis and a following global recession. Governments used a variety of fiscal policy tools to combat the crisis, including more government spending and tax reductions, to boost the economy and stabilize the financial system. Due to constrained fiscal space, rising public debt, and the requirement for international cooperation, governments had trouble putting these measures into practice. budgetary policy solutions were also hampered by worries about long-term budgetary viability and anticipated inflationary pressures.

Learn more about Response to the Global Crisis here :

https://brainly.com/question/32990885

#SPJ11

The restaurant made an annual profit of approximately $84,973.52. This was calculated by subtracting the total costs of $379,589.68 from the total revenue of $464,563.20, taking into account the number of customers served, average guest check, fixed costs, and variable rate.

To calculate the annual profit of the restaurant, we need to consider the total revenue and total costs.

Total Revenue

Total revenue is obtained by multiplying the number of customers served by the average guest check.

Total Revenue = Number of Customers * Average Guest Check

Total Costs

Total costs consist of fixed costs and variable costs.

Fixed Costs: $193,764.40 (Given)

Variable Costs: Variable Rate * Total Revenue

Profit:

Profit is calculated by subtracting total costs from total revenue.

Profit = Total Revenue - Total Costs

Now let's calculate each component:

Number of Customers: 26,412

Average Guest Check: $17.60

Total Revenue = 26,412 * $17.60 = $464,563.20

Variable Costs = Variable Rate * Total Revenue

Variable Rate = 0.4

Variable Costs = 0.4 * $464,563.20 = $185,825.28

Profit = Total Revenue - Total Costs

Total Costs = Fixed Costs + Variable Costs

Total Costs = $193,764.40 + $185,825.28 = $379,589.68

Profit = $464,563.20 - $379,589.68 = $84,973.52

Therefore, the annual profit of the restaurant is approximately $84,973.52.

To know more about profit:

https://brainly.com/question/32864864

#SPJ4

The General Social Survey (GSS) conducted by the National Opinion Research Center (NORC) at the University of Chicago is one of the largest continuous telephone surveys in the world.

The GSS has been conducted since 1972 and collects data on a wide range of social, political, and economic issues. With approximately 400,000 interviews conducted annually, it provides valuable insights into the attitudes, behaviors, and trends in American society. The survey's large sample size and comprehensive nature contribute to its status as one of the world's largest continuous telephone surveys.

Learn more about surveys here:

https://brainly.com/question/31685434

#SPJ11

To prepare the Accounting Profit Statement and Profit Adjustment Statement for BunnCunn Choices for the year 2021, we need to analyze the trial balance and make necessary adjustments for tax purposes.

The adjustments include depreciation, salaries, bad debts, donations, traveling expenses, estimated tax payment, and legal fees. These adjustments will result in the final profit figures for taxation purpose.

Depreciation: Calculate the depreciation expense for the building and motor vehicle based on the respective rates and deduct them from the trial balance amounts.

Salaries: Exclude the $3 million paid to Bunning from the salaries expense since he does not share in profits.

Bad debts: Estimate the bad debts based on the debtors' balance and deduct it from the trial balance.

Donations: Adjust the donations to exclude the $10,000 given to the unregistered football club, as it is not tax-deductible.

Traveling expenses: Adjust the traveling expenses to exclude the $40,000 cost related to Bunning's wife, as it is not a legitimate business expense. Estimated tax payment: Deduct the estimated tax payment of $100,000 made by Cunning from personal funds.

Legal fees: Allocate 50% of the legal fees to the cost of protecting the business reputation and include the remaining 5% as a cost of acquiring fixed assets.

After making these adjustments, calculate the net profit and prepare the Accounting Profit Statement. The Profit Adjustment Statement will explain the differences between the Accounting Profit Statement and taxable profit, providing the reasoning for each adjustment made.

Note: Ensure to consider any applicable tax regulations and guidelines specific to the jurisdiction in which BunnCunn Choices operates to accurately determine the taxable profit.

Learn more about operates here;

brainly.com/question/30581198

#SPJ11

Answer:

The opportunity cost of holding excess reserves is the potential interest earnings that could have been gained by using those reserves for other productive purposes.

Explanation:

When a financial institution holds excess reserves, it means that it has funds beyond the required reserve amount set by regulatory authorities. These excess reserves typically earn little to no interest. The opportunity cost arises from the fact that these funds could have been invested or lent out to generate income.

By holding excess reserves, the institution forgoes the potential earnings it could have gained from alternative investment opportunities. This forgone income represents the opportunity cost of holding excess reserves.

Learn more about opportunity cost here: brainly.com/question/31580865

#SPJ11

On business social media, business professionals are likely to be regarded as self-promoters if they excessively or overtly promote the skills and interests they possess.

This can include continuously highlighting their achievements, capabilities, or expertise in a way that appears self-centered or attention-seeking.

It's important to strike a balance between showcasing one's skills and sharing valuable content with others on the platform. Building meaningful connections, engaging in conversations, and providing useful insights or resources can help establish a positive professional image without coming across as a self-promoter.

Learn more about Communication, here:

https://brainly.com/question/26152499

#SPJ11