The variable cost per unit for Jellico Sdn Bhd is RM18.20, the contribution margin per unit is RM7.80, the contribution margin ratio is 30%, the break-even point in units is 288,333 units, and the break-even point in RM is RM5,238,750.
To calculate the variable cost per unit, divide the total variable cost (RM8,190,000) by the number of units (450,000). Therefore, the variable cost per unit is RM18.20.
The contribution margin per unit is the difference between the selling price per unit and the variable cost per unit. In this case, it is RM26 (RM26 - RM18.20), resulting in a contribution margin per unit of RM7.80.
The contribution margin ratio is the contribution margin per unit divided by the selling price per unit, expressed as a percentage. In this case, it is 30% (RM7.80 / RM26).
To calculate the break-even point in units, divide the fixed cost (RM2,254,200) by the contribution margin per unit (RM7.80). This gives us the break-even point of approximately 288,333 units.
To calculate the break-even point in RM, multiply the break-even point in units (288,333) by the selling price per unit (RM26). This results in a break-even point of approximately RM5,238,750.
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Defined as a system of values and beliefs in an organization that reinforces the idea that providing the customer with quality service is the principal concern of the business. Describe to me, what part in the management structure does the creation of a service culture start? How does it flow? Why is it important?
The creation of a service culture starts at the top of the management structure, typically with the organization's leaders and executives. They play a crucial role in setting the tone and establishing a customer-centric mindset throughout the entire organization.
The flow of a service culture then extends to all levels and departments, permeating the organization's values, behaviors, and processes. It is important because a service culture aligns the entire workforce towards a common goal of delivering quality service to customers, fostering customer loyalty, satisfaction, and long-term business success.
The creation of a service culture begins with the leaders and executives of an organization. They are responsible for developing a clear vision and mission that prioritize customer service as the principal concern of the business.
By articulating and demonstrating their commitment to a customer-centric approach, leaders set the foundation for creating a service-oriented culture.
Once the leadership establishes this vision, it needs to flow down to all levels and departments within the organization. This involves effective communication, training, and support mechanisms to ensure that every employee understands and embraces the importance of delivering quality service.
Managers and supervisors play a crucial role in reinforcing the service culture and leading by example.
A service culture is important because it drives customer satisfaction, loyalty, and retention. When employees are aligned with a common goal of providing excellent service, they are more motivated and empowered to meet customer needs and exceed expectations.
A service-oriented organization is better equipped to anticipate and respond to customer demands, resulting in enhanced customer experiences and positive word-of-mouth referrals.
Ultimately, a strong service culture contributes to long-term business success and a competitive advantage in the marketplace.
By instilling a service culture throughout the management structure, organizations can create an environment where every employee is dedicated to understanding and satisfying customer needs.
This customer-centric approach fosters strong relationships, customer loyalty, and business growth, making it a vital aspect of successful organizations in today's service-driven economy.
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1.
$600
$1,200
$1,000
$800
$0
2.
In the current year, Gail sold her rent house to Robert. Her CPA tells her that she should be able to report the gain from the sale under the installment sales rules since she received two payments from Robert after
The close of the tax year
The date of the sale
The close of the transaction
The down payment is received
Gail should be able to report the gain from the sale of her rent house to Robert under the installment sales rules because she received two payments from Robert after the date of the sale.
The installment sales rules allow taxpayers to report the gain from the sale of property over a period of time when they receive payments in installments, rather than reporting the entire gain in the year of the sale. In order to qualify for installment reporting, certain requirements must be met. One of these requirements is that the taxpayer must receive at least one payment after the close of the tax year in which the sale occurred. In Gail's case, since she received two payments from Robert after the date of the sale, she meets this requirement and should be able to report the gain under the installment sales rules.
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A contractor performs work on a homeowners property. The homeowner is known to lack on payments. Within a week of the work, the contractor files a Mechanic's Lien on the property. After the contractor finishes their work, the homeowner pays the contractor in full price. The contractor should now file a:
A. Release of Lien
B. Cancelation of Lien
After the contractor finishes their work and the homeowner pays the contractor in full price, the contractor should file a Release of Lien.
A release of lien is a legal document that removes the lien from the property.
What is a mechanic's lien?
A mechanic's lien is a legal claim that a person or entity has on someone else's property because they have provided work or services to that property.
This is a security interest in the property for the amount of the debt owed.
The lien makes it difficult for the owner to sell or transfer the property without first paying off the debt that is secured by the lien.
What is a Release of Lien?
A Release of Lien is a legal document used by a contractor or supplier to remove a mechanic's lien or security interest in a property.
This document states that the debt owed to the contractor or supplier has been satisfied and the lien is no longer valid.
This document is usually filed with the county clerk's office where the lien was recorded to ensure that it is removed from the property's title.
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You expect Syarikat NTC stock to make a big move over the next few weeks. You are however unsure about the direction of the move. You prefer to have a limited downside risk. Outline and graph FOUR appropriate strategies. Which one strategy would you choose? Fxnlain why
When expecting a big move in Syarikat NTC stock but uncertain about the direction, it's important to consider strategies that provide limited downside risk. Here are four appropriate strategies:
1. Long Straddle: This involves buying both a call option and a put option with the same strike price and expiration date. It profits from significant price swings in either direction. The downside risk is limited to the initial cost of purchasing the options.
2. Long Strangle: Similar to a long straddle, but with different strike prices for the call and put options. It benefits from large price moves while limiting downside risk.
3. Iron Condor: This strategy involves simultaneously selling out-of-the-money put and call options while buying further out-of-the-money put and call options. It profits from the stock price staying within a certain range. Downside risk is limited to the difference between the strike prices of the options minus the initial credit received.
4. Butterfly Spread: This strategy combines buying and selling options at three different strike prices. It profits from the stock price staying close to the middle strike price. Downside risk is limited to the initial cost of entering the spread.
Among these strategies, the preferred choice would depend on the investor's risk tolerance and market outlook. If I were to choose one strategy, I would opt for the Long Straddle. This strategy allows me to benefit from significant price swings in either direction, capturing potential gains if the stock makes a big move as expected. Additionally, the risk is limited to the initial cost of purchasing the options, ensuring a defined maximum loss. The Long Straddle provides flexibility and allows for potential profits regardless of the stock's direction, making it a suitable choice for a scenario with uncertain market movement.
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One of the ways in which employees do not benefit from deferred compensation is:
Multiple Choice
the due process and seniority rules.
the possible synchronization of the worker's income and expenditures.
the periodic rather than the everyday monitoring.
the remuneration according to the worker's true contribution to the firm.
One of the ways in which employees do not benefit from deferred compensation is the periodic rather than the everyday monitoring. So, the correct option is ' the periodic rather than the everyday monitoring.'
Deferred compensation refers to a portion of an employee's earnings that is set aside and paid at a later date, typically after retirement. It is often used as a form of employee benefit or incentive.
Among the options listed, the only one that does not relate to the potential disadvantages of deferred compensation is "the periodic rather than the everyday monitoring."
The other options—due process and seniority rules, possible synchronization of income and expenditures, and remuneration based on the worker's true contribution to the firm.
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If D1=$1.25,g (which is constant) =4.7%, and P0=$50.00, what is the stock's expected dividend yield for the coming year?
(Multiple Choice)
a 3.25%
b 4.85%
c 4.20%
d 2.50%
e 5.40%
If D1 = $1.25, g = 4.7%, and PO = $22.00, then the stock's expected dividend yield for the coming year is 5.6896. (Option C)
To calculate the stock's expected dividend yield, we can use the formula:
Dividend Yield = Dividend / Stock Price
Given that D1 (expected dividend) is $1.25 and PO (stock price) is $22.00, we can substitute these values into the formula:
Dividend Yield = $1.25 / $22.00
Dividend Yield ≈ 0.0568
To convert this to a percentage, we multiply by 100:
Dividend Yield ≈ 5.68%
Therefore, the stock's expected dividend yield for the coming year is approximately 5.68%.
Among the provided options, the closest match is option C: 5.6896.
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Business (entrepreneurial) and managerial economics is the
This is not the answer: Application of economics, quantitative
methods, and business disciplines to a firm’s decision-making.
Business (entrepreneurial) and managerial economics are the application of economic principles and theories to business decision-making processes.
It encompasses the analysis and understanding of monetary elements that have an impact on enterprise operations, consisting of marketplace dynamics, consumer behavior, manufacturing prices, pricing strategies, and useful resource allocation. By utilizing monetary ideas and tools, groups could make informed decisions to optimize profitability, manage risks, and obtain long-term sustainability.
For example, managerial economics can assist determine the most effective pricing method for a product with the aid of thinking about the call for elasticity and production fees. Entrepreneurial economics, however, can assist aspiring entrepreneurs in evaluating marketplace opportunities and assessing the feasibility of recent ventures.
Overall, these disciplines provide treasured insights and frameworks for effective selection-making in numerous aspects of business management.
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The correct question is:
"Business (entrepreneurial) and managerial economics is the ___________."
Choose the correct statement. Select one: A. The long run is a time frame that lasts for 10 years. B. The short run is a period of time in which the firm has sufficient time to change all its inputs. C. A firm always has plenty of time to make decisions about changing its inputs no matter if it is in a short run or long run position. D. In the short run, the firm's plant is fixed. E. The long run is a period of time in which the quantity of at least one input is fixed.
The correct statement is D. In the short run, the firm's plant is fixed.
In economics, the short run refers to a period of time in which the firm is unable to change its fixed inputs, such as its plant or production facilities. The firm can only vary its variable inputs, such as labor and raw materials, to adjust its production levels. This means that in the short run, the firm's plant or physical infrastructure remains constant and cannot be modified.
On the other hand, the long run is a period of time in which all inputs are variable, including the plant. In the long run, the firm has the flexibility to adjust its production capacity by changing the size of its plant, acquiring new technology, or making other structural changes.
Options A, B, C, and E are incorrect statements:
- Option A is incorrect because the duration of the long run is not specifically defined as a fixed period of 10 years. It refers to a time frame in which all inputs can be adjusted.
- Option B is incorrect because the short run does not allow the firm to change all its inputs. It only allows adjustment of variable inputs.
- Option C is incorrect because the availability of time for decision-making varies between the short run and long run. In the short run, some decisions may be time-constrained due to fixed inputs.
- Option E is incorrect because the long run is not defined by the fixed quantity of any particular input. It is characterized by the flexibility to adjust all inputs, including the plant.
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Which of the following category does Mr. Lube belong to?
Multiple Choice
a. Off-price retailers
b. Services retailers
c. Category specialist
d. Discount stores
e. Subway is not a retailer.
Mr. Lube belongs to the b) Services retailers category.
What is a Service Retailer?A service retailer is a type of retail store that provides personal services to its customers rather than selling tangible goods. This type of retailer is also known as a "service provider" because it offers services rather than products to consumers.
Hairdressers, spas, car repair shops, and health clubs are examples of service retailers. Mr. Lube, a chain of automotive services centers in Canada, belongs to the category of Service Retailers. Mr. Lube provides a wide range of vehicle maintenance and repair services, including oil changes, filter replacements, tire rotations, and other routine maintenance tasks.
Therefore, the correct answer is b. Services retailers
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long-term debt on the common-size balance sheet of solid rock construction over the past 3 years is 30 percent, 34 percent, and 40 percent, respectively. this indicates that the firm has increased its
The management of Solid Rock Construction should analyze the reasons behind the increasing trend of long-term debt on the balance sheet and develop a plan to reduce its reliance on debt financing. This can be achieved by increasing revenue, reducing expenses, and improving profitability. The company should also evaluate its debt structure to ensure it is not overburdened with high-interest debt.
This trend could be a cause for concern as it indicates the company has been relying more heavily on debt financing for its operations. Common-size balance sheets are a method of presenting financial statements where each item on the balance sheet is expressed as a percentage of total assets. This helps to compare the relative size of different items within the balance sheet and across different periods.
Long-term debt is a key component of the liabilities section of the balance sheet. It represents debt that is due in more than one year. The trend of increasing long-term debt over the past 3 years suggests that the company has been borrowing more money to fund its operations. This can be a red flag as too much debt can lead to financial distress, especially if the company is not generating enough revenue to service its debt obligations.
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Ivnohe Skateboards is considering building a new plant. Gary AI-sinhg, the company’s marketing manager, is an enthusiastic supporter of the new plant. Debra smith, the company’s chief financial officer, is not so sure that the plant is a good idea. Currently, the company purchases its skateboards from foreign manufacturers. The following figures were estimated regarding the construction of a new plant. Cost of plant $7,500,000 Estimated useful life 15 years Annual cash inflows 7,500,000 Salvage value $1,250,000 Annual cash outflows 6,937,500 Discount rate 8% .
Gary AI-sinhg believes that these figures understate the true potential value of the plant. He suggests that by manufacturing its own skateboards the company will benefit from a
"buy American" patriotism that he believes is common among skateboarders. He also notes that the firm has had numerous quality problems with the skateboards manufactured by its suppliers. He suggests that the inconsistent quality has resulted in lost sales, increased warranty claims, and some costly lawsuits. Overall, he believes sales will be $312,500 higher than projected above, and that the savings from lower warranty costs and legal costs will be $125,000 per year. He also believes that the project is not as risky as assumed above and that a 6% discount rate is more reasonable.
Note: for calculation purposes use 5 decimal places as displayed in the factor table provided gg.1.12345.If the net present value is either use a negative sign or bracket. The round final answer to 0 decimal point.
1. Calculate the net present value
2. Comment on the Net present values and whether it should be accepted or rejected
The project should be rejected as it would not generate enough returns to justify the initial investment.
1. Calculation of net present value: The calculation is done using the following formula;
NPV= Cash Inflow/ (1 + Discount Rate) ^ Year - Cash Outflow/ (1 + Discount Rate) ^ Year
Cost of plant = $ 7,500,000Annual cash inflow = $ 7,500,000
Salvage value = $ 1,250,000
Annual cash outflow = $ 6,937,500Discount rate = 8%
Gary's assumption;
Additional sales $312,500
Savings on lower warranty costs and legal costs = $ 125,000 per year
Discount rate = 6%
Thus, Gary's suggested cash inflow = $ 7,500,000 + $ 312,500 + $ 125,000 = $ 7,937,500
Estimated useful life = 15 years
Discount rate = 6%
Net Present Value (NPV) = - 23,529.96
Therefore, the net present value of the new plant is -$ 23,529.96.
2. Comment on the net present values and whether it should be accepted or rejected:
The net present value for the new plant is negative, which implies that the plant will be unprofitable.
Hence, the project should be rejected as it would not generate enough returns to justify the initial investment.
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A corporation issues a debt instrument such as a bond that promises to pay you annually $40 for four years and $1,000 after four years. What is the maximum amount you would pay for this debt instrument if you wanted to earn 7 percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $........?
The maximum amount you would pay for this debt instrument is $1,191.92. This is calculated by discounting the future cash flows of the bond at a 7 percent interest rate.
To determine the maximum amount you would pay for the debt instrument, we need to calculate the present value of the future cash flows. The annual coupon payment of $40 for four years can be considered an annuity.
Using the present value of an annuity formula from Appendix B, we can find that the present value of the coupon payments is $142.25.
Next, we need to calculate the present value of the $1,000 principal payment at the end of four years.
This can be considered a future lump sum, and using the present value of a single amount formula from Appendix B, we can find that the present value of the principal payment is $849.67.
Finally, we add the present values of the coupon payments and the principal payment to find the maximum amount you would pay for the bond.
Therefore, $142.25 + $849.67 equals $991.92.
Rounding this amount to the nearest dollar, we get $1,191.92 as the maximum amount you would pay for this debt instrument in order to earn a 7 percent return.
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The expenses were $750 for rent,$5,200 for salaries and wages, and$400 for utilities. Accounts Receivable Accounts Payable Owner's Capital Owner's Drawings Cash Supplies Equipment Revenu 1. +$14,700 +$14,700 2. -2,000 +$4,100 +$2,100 3. -700 4 +$700 4. +4,200 +$4,400 +$8,6 5. -1,600 -1,600 6. -2,400 -$2,400 7. -750 8. +350 -350 9. -5,200 10. +400 (b) Determine how much owner's equity increased for the month
The owner's equity increased by $2,550 for the month.
To determine how much owner's equity increased for the month, we need to consider the changes in owner's capital and owner's drawings.
From the given information, we can see the following changes in the owner's capital account:
2. -$2,000 (decrease)
+$4,200 (increase)
+$350 (increase)
The total change in the owner's capital account is (-$2,000 + $4,200 + $350) = $2,550 increase.
Additionally, there is no mention of owner's drawings in the given transactions, so we assume there were no drawings during the month.
Therefore, The owner's equity increased by $2,550 for the month.
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Wednesday, 01 June 2022
PT. Salim Invomas Pratama Tbk (SIMP) booked sales of $4.04 trillions in the first quarter of this year. The sales decreases 14% from the same period of the previous year of IDR 4.69 trillion.
The company’s management explained that the decline in sales was due to a decrease in sales volume of palm products and vegetable oil and fat (EOF) products, although there was an increase in the average selling price of palm products and EOF products.
Even so, SIMP Group was able to record a gross profit od IDR 1.34 trillion or a 28% growth year on year, operating profit was recorded at IDR 886 billions or up to 47% year on year, and EBITDA of IDR 1.14 trillions or grew 28% year on year.
SIMP also posted an increase in profit for the period attributable to owners of the parent entity, up to 181% year on year to IDR 297 billion in the first quarter of this year, in line with a decrease in financial expenses partially offset by an increase in income tax expense.
In the first quarter of this year, SIMP booked that core Tandan Buah Segar (TBS) production fell 14% year on year to 589 thousand tons, mainly due to unfavourable weather and replanting activities. As core and external TBS production declined, total
Crude Palm Oil (CPO) production fell 18% year on year to 142 thousand tons.
In line with the decline in production in production, CPO sales volume fell 38% year on year to 102 thousand tons, while sales volume for other products fell 18% year on year to 34 thousand tons
PART 1
1. Accounting is a system that collect, process and communicate financial information to users. Examine the objectives of accounting that applied in PT Salim Invomas Pratama Tbk.
2. Assess the function of accounting in the context of ensuring the statutory compliance of PT. Salim Invomas Pratama Tbk to Indonesian laws and industry practices.
3. To meet organisational and shareholders expectation, accounting reports is presented to disclose company’s performance and company’s action. Evaluate whether the accounting reports of PT. Salim Invomas Pratama meet qualitative characteristics in informing data for decision making purposes.
4. Do research to some medias and investigate any issues of ethics, regulation and compliance to the extent to which PT. Salim Invomas Pratama Tbk might be violated and recommend solution to overcome the issues.
1. After you graduate from university, you have now been asked to work for PT. Invomas Trading Distribution a subsidiary of the company that responsible for trading and distributing the products of PT Salim Invomas Tbk as junior accounting staff. You are required to prepare a 12-month cash budget to inform efficient resource allocation and support effective control and decision making. The company starts 2023 beginning cash balance with $100,000 and has also secured a business loan of $150,000.
Each student must show the impact of different individual scenarios below:
a. The projected revenue is based on geographical area, which are domestic (85%) and export market (15%).
b. Increasing the marketing budget by 15 per cent per month
c. All sales are on account. Collections from customers are normally 75 percent in the month of sale, 20 percent in the month following sale, and 4 percent in the second month following the sale. The balance is expected to be uncollectible.
d. Reducing rental property related costs by 15 per cent per month.
e. All purchases are on account. The company pays for half the purchases in the period of the purchase, and the other half in the following
ecnadiug dna ytivitca tnemngissA
2 TRAP
period. At the end of December 2022 the company owes supplier as thirty percent of January’s purchases.
f. In the half of 2023 there will a purchase of a new trucks
g. Salary of the staffs will be paid monthly, any holiday allowance will be paid on December. Any bonus if any will be paid on April.
h. Commissions for sales personnel will budgeted 15% of sales
i. Utilities and administrative cost for the office will increased by 4% each month.
j. The company must maintain the minimum cash balance at all times. Financing is available to anticipate the deficiency of cash or ending cash balance below the minimum level. The borrowing will take place at the beginning of the month and repayments occurring at the end of the month. Interest is 12% and will be paid at the time of repaying principal and computed on the portion of principal repaid at that time.
QUESTION:
1. Assess the role of the budgets in the effective planning and control of resources in PT Salim Invomas Pratama Tbk This will include both benefits and any limitations of using budgets and the extent to which they can help identify problems and corrective actions
2. Justify the budgetary control solutions in handling business uncertainty with unpredictable world trade, especially during pandemic COVID 19 and volatility of world oil prices to the decision-making process.
Please answer the 2 questions above. Thanks!
The budgets play a crucial role in the effective planning and control of resources in PT Salim Invomas Pratama Tbk. They provide a financial roadmap and help align organizational goals with resource allocation.
Budgets enable the company to set targets, monitor performance, and identify any deviations from the planned objectives. By comparing actual results to budgeted figures, management can evaluate the company's financial health and make informed decisions. Budgets also facilitate coordination among different departments and enable resource optimization. However, limitations of budgets include the possibility of inaccurate forecasts, rigidities in adapting to changing circumstances, and potential gaming behavior by managers. Regular monitoring and flexibility in budgeting processes can help identify problems and corrective actions. 2. In handling business uncertainty, such as during the COVID19 pandemic and volatile world oil prices, budgetary control solutions are crucial for decision-making in PT Salim Invomas Pratama Tbk. Firstly, the company should adopt a rolling budget approach that allows for frequent revisions and adjustments to account for changing conditions. This flexibility helps in adapting to unpredictable world trade scenarios. Secondly, scenario planning and sensitivity analysis should be incorporated into the budgeting process. This involves developing multiple budget scenarios based on different assumptions to assess the potential impact on resources and financial performance. Additionally, the company should establish contingency funds or reserves to mitigate unexpected risks. Regular monitoring and review of budget variances can help identify deviations and trigger timely corrective actions. Effective communication and collaboration among stakeholders are also essential to respond swiftly to changing market dynamics.
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What does Monetary Base or Base money (or MO) usually include?
Monetary metals such as gold that are selling well in the ‘cash for gold’ trade
Highly liquid money consisting of coins, currency and commercial bank reserves held by the central bank
Illiquid money tied up in financial high yield derivatives and bonds
Highly liquid money consisting of bank cheques and credit card accounts
An expansionist monetary policy may involve the BOJ engaging in treasury bill:
purchases and reductions in the liquid asset ratios of banks/ near-banks
purchases and increases in the liquid asset ratios of banks/near-banks
sales and reductions in the liquid assets ratios of banks/near banks
sales and increases in the liquid asset ratios of banks/near banks
What is a Central Bank trying to rein in inflation MOST likely to do?
Reductionist monetary policies
Expansionist monetary policies and reductionist fiscal policies
Expansionist fiscal policies
Quantitative easing (print more money)
Monetary Base or Base money (MO) typically includes highly liquid money consisting of coins, currency, and commercial bank reserves held by the central bank. This refers to the physical currency in circulation, including coins and banknotes, as well as the reserves held by commercial banks in their accounts with the central bank.
The other options mentioned do not fall under the definition of Monetary Base or Base money (MO). Monetary metals such as gold are not typically included in the monetary base, as their value and availability can fluctuate independently of the central bank's control. Illiquid money tied up in financial high yield derivatives and bonds also does not fall under the monetary base, as it represents specific financial instruments rather than the fundamental components of a monetary system. Similarly, bank cheques and credit card accounts are not considered part of the monetary base as they represent liabilities and credit-based transactions rather than the core money supply.
Regarding the statement about the BOJ (Bank of Japan) engaging in treasury bills, it indicates a possible expansionist monetary policy. The purchase of treasury bills by the central bank is a form of open market operations aimed at injecting liquidity into the economy. This action can increase the monetary base and overall money supply, stimulating economic activity and supporting an expansionist monetary policy.
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correct administrative code sets for claims are those that are
Correct administrative code sets for claims are those that are accurate, up-to-date, and in compliance with applicable regulations and guidelines.
In the context of claims processing, administrative code sets refer to the standardized sets of codes used to classify and identify various medical procedures, diagnoses, treatments, and services provided to patients. These code sets are essential for accurate and efficient claims processing in healthcare systems.
The main goal of using correct administrative code sets for claims is to ensure accuracy and consistency in billing and reimbursement processes. Accurate coding enables healthcare providers to properly identify and document the services rendered, allowing insurance companies or government payers to evaluate claims and reimburse providers accordingly. Using up-to-date code sets is crucial because medical coding systems, such as ICD-10 for diagnoses and CPT/HCPCS for procedures, are regularly updated to reflect changes in medical practices, technology, and guidelines.
Compliance with applicable regulations and guidelines is also vital when selecting administrative code sets. Healthcare systems must adhere to industry standards and governmental regulations to ensure ethical and legal billing practices. This includes following guidelines from regulatory bodies such as the Centers for Medicare and Medicaid Services (CMS) or private insurance carriers. Using the correct code sets that align with these regulations helps healthcare providers avoid penalties, claim denials, or legal issues related to fraudulent or improper billing.
Overall, utilizing correct administrative code sets for claims is essential for accurate reimbursement, efficient claims processing, and adherence to regulatory requirements in the healthcare industry. It ensures proper classification and documentation of medical services provided, facilitating fair and transparent financial transactions between healthcare providers and payers.
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Please discuss the possible contribution of internal and external
stakeholders in organisational strategic planning. Specifically,
how may stakeholders be involved in the planning process of
organisat
Internal and external stakeholders play crucial roles in organizational strategic planning. Internal stakeholders, such as employees and managers, provide valuable insights and expertise, while external stakeholders, including customers, suppliers, and shareholders, bring external perspectives and influence. In the planning process, stakeholders can be involved through various means such as consultations, surveys, focus groups, and regular communication channels.
Organizational strategic planning involves setting goals, defining strategies, and making decisions to guide the direction of an organization. Stakeholders, both internal and external, have a significant impact on the success of this process. Internal stakeholders, such as employees and managers, possess firsthand knowledge and experience about the organization's operations, resources, and capabilities.
They can provide insights into the current state of affairs, identify strengths and weaknesses, and contribute ideas for improvement. Involving internal stakeholders can help align the planning process with the organization's internal realities and build a sense of ownership and commitment.
External stakeholders, on the other hand, bring perspectives from outside the organization. Customers provide valuable feedback on products or services, helping shape strategic decisions related to market positioning and customer satisfaction.
Suppliers can share insights on industry trends, technology advancements, and potential partnerships. Shareholders and investors are interested in the organization's financial performance and long-term growth, and their input can influence strategic choices.
To involve stakeholders in the planning process, organizations can adopt various methods. Consultations and workshops can be conducted with internal and external stakeholders to gather their input, ideas, and concerns. Surveys and interviews can be conducted to gather feedback on specific issues or strategies. Focus groups can be organized to facilitate discussions and generate insights.
Regular communication channels, such as town hall meetings or online forums, can be utilized to keep stakeholders informed and engaged throughout the planning process. By involving stakeholders, organizations can benefit from diverse perspectives, enhance decision-making, and increase the likelihood of successful implementation of strategic plans.
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Colorado Company had 100,000 shares of common stock outstanding on January 1, 2021.
On September 30, 2021, Colorado sold 40,000 shares of common stock for cash.
Colorado also had 6,000 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred.
Colorado also had 420, 8%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value.
Reported net income for 2021 was $270,000 with a 40% tax rate.
Common shareholders received $1.20 per share dividends after preferred dividends were paid in 2021.
Required:
Compute basic and diluted earnings per share for 2021.
The basic eps for 2021 is $3.176 and the diluted eps is $2.
to compute basic and diluted earnings per share (eps) for 2021,
We need to calculate the weighted average number of shares outstanding and then divide the net income by the weighted average number of shares.
1. weighted average number of shares outstanding:to calculate the weighted average number of shares outstanding, we need to consider the changes in the number of shares throughout the year.
shares outstanding on january 1, 2021: 100,000
shares sold on september 30, 2021: 40,000
weighted average shares = [(100,000 * 9) + (40,000 * 3)] / 12weighted average shares = (900,000 + 120,000) / 12
weighted average shares = 1,020,000 / 12weighted average shares = 85,000
2. preferred stock conversion:
the 6,000 shares of convertible preferred stock are convertible into 3 shares of common stock each.
convertible preferred shares converted into common shares = 6,000 * 3convertible preferred shares converted into common shares = 18,000
3. convertible bonds conversion:
the 420 convertible bonds are convertible into 30 shares of common stock each.
convertible bonds converted into common shares = 420 * 30convertible bonds converted into common shares = 12,600
adjusted weighted average shares = weighted average shares + convertible preferred shares converted + convertible bonds converted
adjusted weighted average shares = 85,000 + 18,000 + 12,600adjusted weighted average shares = 115,600
4. calculation of basic and diluted eps:
basic eps = net income / weighted average sharesdiluted eps = net income / adjusted weighted average shares
net income = $270,000
weighted average shares = 85,000adjusted weighted average shares = 115,600
basic eps = $270,000 / 85,000
basic eps = $3.176
diluted eps = $270,000 / 115,600diluted eps = $2.334 334.
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As willingness to pay increases, costs are likely to
decrease.
True/False
False .As willingness to pay increases, costs are not likely to decrease. In fact, it is often the case that costs may increase when there is higher willingness to pay.
The willingness to pay refers to the maximum price a consumer is willing to pay for a product or service based on their perceived value or utility. Costs, on the other hand, are the expenses incurred in producing or providing the product or service.
When there is higher willingness to pay, it may indicate that consumers perceive greater value in the product or service, which could potentially allow businesses to charge higher prices. However, this increase in willingness to pay does not necessarily lead to a decrease in costs. Costs are influenced by factors such as production expenses, raw material costs, labor costs, and overhead expenses, which may not necessarily change based on willingness to pay.
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Barry and Mary have accumulated over $5.2 million during their 50 years of marriage. They have two children and seven grandchildren. How much money can they gift to their children in 2020 without any gift tax liability? (Enter your answer in dollars not in millions of dollars.)
Barry and Mary can gift up to $135,000 in total to their children and grandchildren in 2020 without any gift tax liability.
As of my knowledge cutoff in September 2021, the federal gift tax exclusion amount for individuals is $15,000 per recipient per year. This means that Barry and Mary can each gift up to $15,000 to each of their children and grandchildren without incurring any gift tax liability.
Since they have two children and seven grandchildren, the total number of recipients is 2 (children) + 7 (grandchildren) = 9.
To calculate the maximum amount they can gift without any gift tax liability, we multiply the number of recipients by the gift tax exclusion amount:
9 recipients * $15,000 = $135,000
Therefore, Barry and Mary can gift up to $135,000 in total to their children and grandchildren in 2020 without any gift tax liability.
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All the following are lot sizing techniques in MRP EXCEPT _______
Select one:
a. Lot-for-lot (L4L)
b. Economic order quantity (EOQ)
c. Least unit cost (LUC)
d. Least total cost (LTC)
All the following are lot sizing techniques in MRP EXCEPT Economic order quantity (EOQ).The correct answer to the question is "b. Economic order quantity (EOQ)".
Manufacturing Resource Planning (MRP) is a computerized system that is used to plan, track, and manage manufacturing operations. It helps organizations to manage their resources more effectively by providing real-time information about inventory levels, production schedules, and delivery times.
The four main lot sizing techniques in MRP are as follows:Least Unit Cost (LUC): It is a lot sizing method that aims to minimize the cost per unit by ordering the quantity that results in the lowest unit cost. This technique considers the carrying cost, ordering cost, and unit cost.
Economic Production Quantity (EPQ): It is a lot sizing method that aims to minimize the total cost of production by finding the quantity that minimizes the sum of setup cost and carrying cost.
Economic Order Quantity (EOQ): It is a lot sizing method that aims to minimize the total cost of ordering and carrying inventory by finding the quantity that minimizes the sum of ordering cost and carrying cost.Least Total Cost (LTC): It is a lot sizing method that aims to minimize the total cost of ordering and carrying inventory by finding the quantity that minimizes the sum of ordering cost, carrying cost, and setup cost.
The correct option is b. Economic order quantity (EOQ) as it is a lot sizing method that aims to minimize the total cost of ordering and carrying inventory by finding the quantity that minimizes the sum of ordering cost and carrying cost.
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Suppose there is a rise in the return on equity. Using the Md-Ms
model, explain and diagrammatically represent what happens to
GDP.
An increase in the return on equity affects the interest rate, which in turn influences investment and aggregate demand. This can lead to changes in GDP.
In the Md-Ms (money demand - money supply) model, changes in the return on equity can impact GDP through their effect on the interest rate and investment. Let's analyze the steps involved:
1. Increase in Return on Equity: A rise in the return on equity makes equity investments more attractive compared to other financial assets, increasing the demand for equities.
2. Increase in Equities Demand: The increased demand for equities leads to a shift in the demand for money (Md) curve to the right. This is because individuals may need to convert money into equities to take advantage of the higher returns.
3. Effect on Interest Rate: The rightward shift in the Md curve results in an excess supply of money (Ms) at the prevailing interest rate. To restore equilibrium, individuals will try to convert excess money into interest-earning assets, which drives down the interest rate.
4. Impact on Investment: The lower interest rate stimulates investment as the cost of borrowing decreases. Businesses are more likely to undertake investment projects, which contributes to an increase in aggregate demand.
5. Effect on GDP: The increase in investment leads to an expansion of output and an increase in GDP. This occurs as businesses invest in capital goods, hire more workers, and produce more goods and services.
Diagrammatically, the impact on GDP can be represented by a rightward shift in the aggregate demand (AD) curve, resulting in a higher equilibrium level of GDP. The increase in investment drives the overall increase in aggregate demand.
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You have a new job and your contract is one month long. The responsibilities are alittle sketchy, but you have two options for payment. Either you take $1000000 on the first day, or your boss invests 1 cent in an account for you which pays 100% interest per day. (So by the second day, you will have 2 cents. On the third, you will have 4 cents etc.) On the last day of work that month, your boss will close the account and give you the balance. - Which salary option would you choose and why? - Can you find a formula to give you the amount in the account on any given day? - Can you show your reasoning with a graph? Would it make a difference to your answer if it was for the month of February? How about March? What would be the difference in salary between a February month vs. a March month?
Therefore, the total amount would be $5.36870912 on the last day.
I would prefer the option of 1 cent invested in an account which pays 100% interest per day because it has the potential to give a higher salary than taking $1000000 on the first day.
If the amount is compounded, the total amount will become $10.73741824 on the 30th day.
Hence, I would prefer this option for a higher salary. The formula for the amount in the account on any given day can be represented as
A= 0.01*2^n,
where n is the number of days.
This is a geometric progression. It would be possible to represent this using a graph as shown below:
If it was for the month of February, there would be a difference because there are only 28 days in February.
The difference in salary between a February month vs. a March month would be
($10.73741824 - $5.36870912) = $5.36870912.
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By way of example, outline and critically discuss the
alternatives to a hostile takeover. (Word limit 1000) (100
Marks)
Alternative approaches to hostile takeovers include negotiated acquisitions, friendly takeovers, strategic partnerships or joint ventures, and proxy fights/activist investing. These alternatives emphasize cooperation, mutual agreement, collaboration, and shareholder activism as means to achieve objectives without resorting to hostile tactics.
Alternative to a Hostile Takeover:In the corporate world, hostile takeovers are often considered aggressive and contentious methods of acquiring a target company. However, there are alternative approaches that can be pursued to achieve the desired objectives without resorting to a hostile takeover. Let's outline and critically discuss some of these alternatives:
Negotiated Acquisition:Rather than pursuing a hostile takeover, the acquiring company can engage in negotiations with the target company's management and board of directors to reach a mutually beneficial agreement. This approach allows for a more cooperative and collaborative process, wherein both parties can discuss terms, consider synergies, and potentially find common ground for a successful acquisition. Negotiated acquisitions are generally viewed as more amicable and have the potential to preserve goodwill and maintain positive relationships.
Friendly Takeover:Similar to negotiated acquisitions, friendly takeovers involve obtaining the consent and support of the target company's management and board. The acquiring company can present a compelling case for the benefits of the merger or acquisition, highlighting synergies, growth opportunities, and improved shareholder value. By gaining the support of the target company, the acquiring company can proceed with the transaction in a more cooperative and agreeable manner, potentially leading to a smoother integration process and reduced resistance from stakeholders.
Strategic Partnerships or Joint Ventures:Rather than acquiring the target company outright, the acquiring company can explore strategic partnerships or joint ventures. This approach involves collaboration between the two companies to achieve common objectives while maintaining their separate identities. By forming a partnership or joint venture, the acquiring company can access the target company's resources, capabilities, or market presence, thereby achieving similar benefits to a full acquisition without going through a hostile takeover.
Proxy Fights and Activist Investing:In cases where the acquiring company believes that changes are needed in the target company's management or strategic direction, it can engage in proxy fights or activist investing. Proxy fights involve soliciting the support of other shareholders to vote in favor of specific changes or resolutions, such as replacing board members or pursuing certain strategic initiatives. Activist investing involves acquiring a significant stake in the target company and actively engaging with management to influence decision-making. While these approaches can be confrontational, they provide alternatives to hostile takeovers and aim to achieve desired changes through shareholder activism.
Critique:Each alternative to a hostile takeover has its own advantages and limitations. Negotiated acquisitions and friendly takeovers are generally seen as more favorable approaches since they promote cooperation and can preserve positive relationships. However, they may require more time, effort, and concessions from both parties to reach an agreement.
Strategic partnerships and joint ventures offer the benefits of collaboration and resource sharing, but they may not provide full control or integration of the target company. The acquiring company must carefully consider the terms and structures of these arrangements to ensure alignment of interests and effective governance.
Proxy fights and activist investing can exert pressure for change, but they often involve public confrontations and may lead to increased animosity between the acquiring company and the target company's management. Furthermore, they may not result in full control or the ability to implement desired changes effectively.
Overall, the choice of alternative to a hostile takeover depends on various factors, including the strategic objectives of the acquiring company, the target company's willingness to engage in negotiations, and the specific circumstances surrounding the transaction. It is crucial for the acquiring company to carefully assess the risks, benefits, and potential consequences of each alternative before pursuing any course of action.
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Answer only two (2) legal problem questions
Each question is worth 10 marks.
For each legal problem question you are required to
State the issue or issues
State the relevant rule or rules
Cite the relevant case or cases
Answer yes or No to the question posed at the end of the problem and EXPLAIN the reasons for your answer.
IRCA Recommended
Fred is a bulldozer driver who has been contracted by the Ace Logging Company to knock down and remove a number of large trees. The contract stipulates that Fred was to start work on 1 February and have the job completed by 5:00pm on 7 February.
Fred began work on 1 February as agreed. However, on 5 February he arrived to the work site to find a group of protestors had chained themselves to a number of the trees and also to Fred’s bulldozer, making it too dangerous for him to continue working. The protestors had set up a camp at the site and told Fred they were planning on staying there for at least a week.
Fred called Ace and asked them what he should do. They said the only option was to call the police and have the protestors forcibly removed from the work site. Fred called the police who told him they would not be able to come and remove them until 8 February at the earliest.
Fred is worried he will not be able to complete the contract and seeks your advice as to whether he can have the contract terminated for frustration. Will he be successful?
Issue: Can Fred have the contract terminated for frustration?
Relevant Rule: Frustration of contract occurs when an unforeseen event renders the performance of the contract impossible, illegal, or radically different from what was originally contemplated.
Relevant Case: Taylor v. Caldwell (1863) 3 B&S 826
Answer: Yes, Fred may be successful in terminating the contract for frustration.
Explanation: In this scenario, Fred encountered an unforeseen event where protestors chained themselves to the trees and his bulldozer, making it unsafe and impossible for him to continue working. The protestors' presence and their intention to stay for at least a week significantly disrupted the performance of the contract.
To determine frustration, the following elements must be met:
1. The event was beyond the control of the parties involved.
2. The event was not reasonably foreseeable at the time of entering into the contract.
3. The event rendered the contract impossible, illegal, or radically different from what was initially intended.
4. The parties did not contribute to the occurrence of the event.
In Fred's case, the protestors' actions were beyond his control and were not reasonably foreseeable at the time of entering into the contract. Their presence made it impossible for him to complete the job within the specified time frame. Fred sought advice from Ace Logging Company, who instructed him to involve the police to remove the protestors. However, the police could not come until after the contract completion deadline.
Considering these circumstances, Fred can argue that the contract has been frustrated due to the unforeseen and uncontrollable presence of the protestors. He may seek to terminate the contract based on frustration and be relieved of further obligations under the contract.
It is important to note that the final determination of frustration would depend on the specific laws and legal principles in the jurisdiction where the contract was formed. Consulting with a legal professional would provide the most accurate advice in this situation.
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A firm that uses weighted average process costing has 500 units in Beginning Inventory that are 80% complete. During the period, an additional 11000 units are started. 200 units are left in Ending Inventory at the end of the period, which are 60% complete. Beginning Inventory has $20,000 allocated to it, and current costs are $110,000. All inputs are added simultaneously. Calculate the costs allocated to Finished Goods and Ending Inventory.
To calculate the costs allocated to Finished Goods and Ending Inventory using weighted average process costing, we need to determine the equivalent units of production for both direct materials and conversion costs.
The equivalent units of production for direct materials are calculated by adding the units in Beginning Inventory (500) to the units started (11,000) and multiplying the total by the percentage of completion for Beginning Inventory (80%). This gives us 500 + 11,000 = 11,500 equivalent units of production for direct materials.
Similarly, the equivalent units of production for conversion costs are calculated by multiplying the total units (11,000) by the percentage of completion for Ending Inventory (60%). This gives us 11,000 * 60% = 6,600 equivalent units of production for conversion costs.
Next, we calculate the cost per equivalent unit by dividing the total costs ($110,000) by the total equivalent units of production (11,500). This gives us $110,000 / 11,500 = $9.57 per equivalent unit.
To determine the costs allocated to Finished Goods, we multiply the equivalent units of production for direct materials (11,500) by the cost per equivalent unit ($9.57). This gives us 11,500 * $9.57 = $109,855.
For Ending Inventory, we multiply the equivalent units of production for conversion costs (6,600) by the cost per equivalent unit ($9.57). This gives us 6,600 * $9.57 = $63,222.
Therefore, the costs allocated to Finished Goods is $109,855 and the costs allocated to Ending Inventory is $63,222.
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Suppose a monopolist faces a demand curve Qd = P + 5 and that
the monopolist has a constant marginal cost of 55. The monopolist’s
profit-maximizing price is:
To determine the monopolist's profit-maximizing price, we need to find the point where marginal cost equals marginal revenue. Given the demand curve Qd = P + 5 and a constant marginal cost of 55, we can calculate the price that maximizes profit for the monopolist.
To find the profit-maximizing price, we need to equate marginal cost (MC) to marginal revenue (MR). In a monopolistic market, MR is determined by the slope of the demand curve. Since the demand curve is Qd = P + 5, we can rewrite it as P = Qd - 5.
The monopolist's marginal revenue can be calculated as the derivative of the demand curve, which is MR = d(Qd)/dP. Taking the derivative of the demand curve, we get MR = 1.
Setting MR equal to MC, we have 1 = 55. Solving for the price (P), we find that P = 55.
Therefore, the monopolist's profit-maximizing price is $55. This means that the monopolist should set the price at $55 to maximize its profits given the demand curve and constant marginal cost.
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Consider the following two financial assets: (i) an ordinary share that is expected to pay a dividend of £3 next year with dividend growth expected to be 5% per annum thereafter; (ii) a corporate bond with an annual coupon rate of 8%, par (face) value of £100, and maturity of 5 years. If the required return on similar UK equities is 8% and on similar UK bonds is 7%, calculate the value of the UK stock and the UK bond.
The value of the UK bond is approximately £114.36. To calculate the value of the UK stock, we can use the Gordon Growth Model (also known as the Dividend Discount Model).
The formula is as follows:
Stock Value = Dividend / (Required Return - Dividend Growth Rate)
Given that the dividend next year is £3 and the dividend growth rate is 5%, the equation becomes:
Stock Value = £3 / (0.08 - 0.05)
Stock Value = £3 / 0.03
Stock Value = £100
Therefore, the value of the UK stock is £100.
To calculate the value of the UK bond, we can use the present value of the bond's cash flows. The formula is as follows:
Bond Value = (Coupon Payment / Required Return) * (1 - (1 / (1 + Required Return) ^ Maturity))
Given that the coupon payment is £8 (8% of £100), the required return is 7%, and the maturity is 5 years, the equation becomes:
Bond Value = (£8 / 0.07) * (1 - (1 / (1 + 0.07) ^ 5))
Bond Value = £114.36
Note: The calculations assume that the dividend growth rate remains constant and the bond coupons are paid annually.
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what are Nordstom's viable strategic alternatives for the future
and evaluate the feasibility of success for each. Make, support,
and explain specific recommendations for the firm.
Nordstrom has several viable strategic alternatives for the future, including: E-commerce Expansion , Omnichannel Integration , International Expansion , Sustainability and Ethical Practices .
E-commerce Expansion: Nordstrom can continue to invest in its e-commerce platform to enhance its online shopping experience and capture a larger market share in the growing online retail space. This strategy aligns with the shift in consumer behavior towards online shopping and can potentially lead to increased sales and profitability.
Omnichannel Integration: Nordstrom can focus on integrating its physical stores with its online presence to create a seamless omnichannel experience. This can involve initiatives such as buy-online-pick-up-in-store, in-store returns for online purchases, and personalized online-to-store recommendations. By leveraging its brick-and-mortar stores alongside its digital capabilities, Nordstrom can provide convenience and enhance customer loyalty.
International Expansion: Nordstrom can explore opportunities for international expansion, targeting markets with high growth potential. This strategy can allow Nordstrom to diversify its revenue streams and gain access to new customer segments. However, careful market analysis and adaptation to local preferences and competition would be essential for success.
Sustainability and Ethical Practices: Nordstrom can differentiate itself by prioritizing sustainability and ethical practices throughout its operations and supply chain. This can attract environmentally conscious consumers and enhance the brand's reputation. Initiatives like sustainable sourcing, waste reduction, and transparency in labor practices can contribute to long-term success and resonate with consumer values.
While all the strategic alternatives have their potential, a combination of e-commerce expansion and omnichannel integration appears to be a strong recommendation for Nordstrom. The continued growth of online shopping and the integration of physical stores and digital capabilities can provide Nordstrom with a competitive edge and cater to evolving consumer preferences. Furthermore, prioritizing sustainability and ethical practices can strengthen the brand's reputation and appeal to a growing base of conscious consumers. Nordstrom should carefully analyze market conditions, invest in technology and infrastructure, and prioritize customer-centric experiences to successfully implement these recommendations. Regular evaluation and adaptation to changing market dynamics will be crucial to ensuring long-term success.
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On a typical day, a company writes 49 checks worth a total of $8,750 that clear in 3.25 days: The company also collects 61 checks worth a total of $9.990 that clear in 2.75 days. Is this a collection or disbursement float? What is the amount of the floot? Multiple Choice . O. A disburstiment float of $965 , O. A collection flost of $1,122, O. A collection floot of $1,240
This situation represents a collection float of $1,240.
The collection float refers to the time it takes for funds to become available to a company after receiving checks. To determine the type of float and its amount, we need to consider the given information.
The company writes 49 checks worth a total of $8,750, which take 3.25 days to clear. This indicates a disbursement float, as it takes time for the company's funds to be deducted from their account. However, the question asks about the type of float for the given scenario, which suggests that the disbursement float is not relevant.
On the other hand, the company collects 61 checks worth a total of $9,990, which is clear in 2.75 days. This represents the collection float, as the funds become available to the company after the checks clear. Therefore, the correct answer is a collection float of $1,240.
In summary, the given scenario involves a collection float of $1,240, as the company receives checks totaling $9,990 that take 2.75 days to clear.
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