The answer is option A: Insured's computer is damaged by an electrical surge while neighbor is visiting.
Explanation:
Homeowners insurance policy is an insurance policy that covers the loss or damage to a home. Homeowners insurance can cover various damages to a home, its contents, personal liability, and other related losses.
Personal Liability on a Homeowners policy covers injuries or damages that the policyholder, or their family members, cause to other people or their property.It provides coverage for legal liability for accidents that occur in the home or on the insured's property.
Option A: Insured's computer is damaged by an electrical surge while a neighbor is visiting:
This is covered under personal liability. If the neighbor sues the insured for the damaged computer, the homeowners' insurance policy's personal liability coverage will pay for the loss.
Option B: Insured's 40-year-old sister falls down the stairs and breaks her leg when visiting:
This is not covered by personal liability, but rather by the medical payments coverage.Personal liability coverage provides coverage for damage caused to others and not for injuries that the insured family members sustain.
Option C: Insured's cat scratches a newly purchased leather sofa and chair with ottoman:
This is not covered under personal liability. The damage was caused by the insured's property, not by the insured or a family member. It is covered by the policyholder's property damage coverage.
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1. List and explain 2 strategies to Improve organizational effectiveness. 2. List and explain 2 techniques for goal setting. 3. List and explain 2 ways to practice workplace equity and inclusion.
To improve organizational effectiveness, clear communication channels and continuous learning are key. Setting SMART goals and utilizing the OKR framework aid in effective goal setting. Promoting workplace equity and inclusion involves diverse hiring, employee resource groups, and diversity training programs.
1. Strategies to Improve Organizational Effectiveness:
a) Clear Communication Channels: Establishing open and transparent communication channels within an organization is vital for enhancing organizational effectiveness. This ensures information flows smoothly, reducing misunderstandings and fostering collaboration.
b) Continuous Learning and Development: Encouraging a culture of continuous learning and development boosts organizational effectiveness. Providing opportunities for professional growth and training equips employees with the skills needed to enhance productivity and adapt to changes.
2.Techniques for Goal Setting:
a) SMART Goals: Setting Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals enables individuals and teams to create clear objectives that are actionable and trackable.
b) OKRs (Objectives and Key Results): The OKR framework involves defining ambitious objectives and measurable key results, enabling teams to align efforts, prioritize initiatives, and achieve impactful outcomes.
3.Ways to Practice andWorkplace Equity Inclusion:
a) Diverse Hiring and Inclusive Recruitment Practices: Promoting workplace equity and inclusion begins with diverse hiring and inclusive recruitment strategies. These involve actively seeking candidates from various backgrounds and implementing unbiased selection processes.
b) Employee Resource Groups and Diversity Training: Establishing Employee Resource Groups (ERGs) and providing diversity training programs create platforms for employees to connect, support one another, and raise awareness about biases, fostering an inclusive work environment.
Implementing these strategies and techniques enhances organizational effectiveness, fosters a positive work culture, and promotes equity and inclusion within the workplace.
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What is the title that AASB 112/IAS 12 Income Taxes uses to describe differences between the carrying amount of an asset or liability in the statement of financial position and the tax base of the asset or liability?
a.permanent differences.
b.timing differences.
c.carrying amount differences.
d.temporary differences.
Clear my choice Question 17 Not yet answered Marked out of 1.00 Flag question Question text
TI Ltd has the following tax balances at the end of its first financial period: current tax liability $12 000, deferred tax liability $15 000, and deferred tax asset $18 000. There is no tax on items of other comprehensive income. What recognise as income tax expense in its first financial period?
a.$30 000 [= $12 000 + $18 000]
b.$27 000 [= $12 000 + $15 000]
c.$15 000 [= $12 000 – $15 000 + $18 000]
d.$9000 [= $12 000 + $15 000 – $18 000]
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AASB 112/IAS 12 Income Taxes defines ‘current tax’ as:
a. the amount of income tax recognised that is attributable to the transactions and events of the current period.
b. the amount of income taxes payable (recoverable) classified as a current liability (current asset).
c. the amount of income taxes payable classified as a current liability.
d. the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period.
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AASB 112/IAS 12 Income Taxes defines ‘accounting profit’ as:
a. profit or loss and other comprehensive income for a period before deducting tax expense
b. profit or loss for a period after deducting tax expense
c. profit or loss for a period before deducting tax expense
d. profit or loss and other comprehensive income for a period after deducting tax expense
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Carmen Limited has an accounting profit before tax of $240 000. All of the following items have been included in the accounting profit: depreciation of equipment $30 000 (tax deductible depreciation is $40 000); entertainment expenses $10 000 (non-deductible for tax purposes); long service leave expense $80 000 (long service leave paid is $50 000). The tax rate is 30%. What is the taxable profit for the period?
a.$320 000.
b.$310 000.
c.$270 000.
d.$290 000.
The taxable profit for the period is $310,000. This is calculated by starting with the accounting profit of $240,000 and adjusting for the differences between accounting and tax rules.
The adjustments include adding back the non-deductible entertainment expenses of $10,000 and subtracting the tax-deductible depreciation of $40,000. The long service leave expense is not adjusted because it represents a timing difference, not a permanent difference. Finally, the taxable profit is multiplied by the tax rate of 30%.
The taxable profit is calculated by making adjustments to the accounting profit based on tax rules. Non-deductible expenses are added back, while tax-deductible expenses are subtracted. The long service leave expense is not adjusted because it represents a timing difference, meaning it will be deductible for tax purposes in future periods. The resulting taxable profit is then multiplied by the applicable tax rate to determine the income tax expense. In this case, the taxable profit is $310,000.
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the model was criticized, the model evolved incorporating time value of money to create the discounted payback method. The modeis stili refectad faulty ranking criteris but they provided important information about liguldity and risk. faulty ranking criteria but they provided important information about liquidity and risk. Cash flows expected in the distant future are risky than cash flows received in the near-term-which suggests that the payback period can also serve as an indicator of project risk. Suppose Extensive Enterprises's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5 years. If the project's weighted average cost of capital (WACC) is 9%, what is its NPV? $379,440 $344,945 5327,698 9362,192 Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply, The discounted payback period is calculated using net income instead of cash flows. The discounted payback period does not take the time value of money into account. The discounted payback period does not take the project's entire life into account.
The NPV of the project can be calculated based on the given information about the regular payback period and the project's weighted average cost of capital (WACC). However, the information provided in the question is insufficient to determine the NPV.
To calculate the NPV, we need the project's initial cost and the cash inflows for each period. Since the initial cost is not provided, we cannot determine the NPV. The NPV represents the present value of all cash inflows and outflows of a project, discounted at the project's WACC. Without the initial cost and specific cash inflows, it is not possible to compute the NPV in this case.
Regarding the disadvantages of using the discounted payback period for capital budgeting decisions, we need to check the statements provided:
1. The discounted payback period is calculated using net income instead of cash flows: This statement is not applicable because the discounted payback period is actually calculated using discounted cash flows, not net income. It takes into account the time value of money by discounting the cash flows to their present values.
2. The discounted payback period does not take the time value of money into account: This statement is incorrect. The discounted payback period does consider the time value of money by discounting the cash flows. It reflects the fact that cash flows received in the distant future are riskier than cash flows received in the near-term.
3. The discounted payback period does not take the project's entire life into account: This statement is true. The discounted payback period focuses on the time it takes to recover the initial investment, considering the discounted cash flows. It does not explicitly consider the project's entire life or the cash flows beyond the payback period.
In conclusion, the correct statement indicating a disadvantage of using the discounted payback period for capital budgeting decisions is: - The discounted payback period does not take the project's entire life into account.
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You borrow money on a self-liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest)
Loan amount $479,000
Interest Rate 17.2%
Life 43 years
Date of Loan January 1, 2021
Use the installment method - not straight line
Do NOT round any intermediate numbers.
Do NOT turn this into a monthly problem.
Do NOT put in minus signs, answer all positive numbers.
Required:
1. What is the annual payment (round to the nearest $)?
$
2. What are the total interest payments (round to the nearest $)?
$
3. After 16 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
Given data -
Loan amount: $479,000
Interest Rate: 17.2%
Life = 43 years
Date of Loan: January 1, 2021
Self-liquidating installment loan: Equal payments at the end of each year, each payment is part principal part interest The installment method is used.
Annual payment using the below formula:
PMT = P * r * (1 + r)^n / ((1 + r)^n - 1)
PMT = Payment amount
P = Principal, the present value of the loan = $479,000
r = Annual interest rate = 17.2% / 100 = 0.172
n = Number of payments = 43
Annual Payment = PMT
PMT = 479000 * 0.172 * (1 + 0.172)^43 / ((1 + 0.172)^43 - 1)
Annual Payment = $28,486.39
Therefore, the annual payment is $28,486.39.The total interest payment using the below formula:
Total Interest = Payment * Number of Payments - Principal
Total Interest = 28486.39 * 43 - 479000
Total Interest = $581,813.77
Therefore, the total interest payments are $581,813.77.
After 16 payments, the remaining number of payments is 43 - 16 = 27.
Payment after 16 payments:
Using the formula, Payment = P * r / (1 - (1 + r)^-n)
P = Principal, the present value of the loan = $479,000
r = Annual interest rate = 17.2% / 100 = 0.172n = Number of payments = 43
Payment after 16 payments = 479000 * 0.172 / (1 - (1 + 0.172)^-27)
Payment after 16 payments = $40,449.28
Remaining interest after 16 payments:
Total interest - Interest paid after 16 payments
Remaining interest after 16 payments = 581813.77 - 16 * 28486.39 - 27 * 40449.28
Remaining interest after 16 payments = $262,967.30
Percentage of the total interest paid after 16 payments:
Percentage of the total interest paid after 16 payments = (Total interest - Remaining interest after 16 payments) / Total interest * 100
Percentage of the total interest paid after 16 payments = (581813.77 - 262967.30) / 581813.77 * 100
Percentage of the total interest paid after 16 payments = 54.85% ≈ 55%Therefore, the percentage of the total interest paid after 16 payments (rounded to the nearest percentage point) is 55%.
Annual payment = $28,486.39
Total interest payments = $581,813.77
Percentage of the total interest paid after 16 payments = 55%.
The annual payment has been calculated using the formula PMT = P * r * (1 + r)^n / ((1 + r)^n - 1) and found to be $28,486.39.
The total interest payments have been calculated using the formula:
Total Interest = Payment * Number of Payments - Principal and found to be $581,813.77.
The percentage of the total interest paid after 16 payments has been calculated using the formula
Percentage of the total interest paid after 16 payments = (Total interest - Remaining interest after 16 payments) / Total interest * 100 and found to be 55%.
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A computer-products retailer purchases laser printers from a manufacturer at a price of $500 per printer. During the year the retailer will try to sell the printers at a price higher than $500 but may not be able to sell all of the printers. At the end of the year, the manufacturer will pay the retailer 30 percent of the original price for any unsold laser printers. No one other than the manufacturer would be willing to buy these unsold printers at the end of the year.
At the beginning of the year, before the retailer has purchased any printers, what is the opportunity cost of laser printers? In other words, what must a retailer "give up" in order to add one laser printer to its inventory?
After the retailer has purchased the laser printers, what is the sunk cost associated with each printer?
Suppose that at the end of the year, the retailer still has a large inventory of unsold printers. The retailer has set a retail price of $1,200 per printer. A new line of printers is due out soon, and it is unlikely that many more old printers will be sold at this price. The marketing manager of the retail chain argues that the chain should cut the retail price by $1,000 and sell the laser printers at $200 each. The general manager of the chain strongly disagrees, pointing out that at $200 each, the retailer would "lose" $300 on each printer it sells. Is the general manager’s argument correct?
The opportunity cost of laser printers for the retailer, before purchasing any printers, is the potential revenue that could be earned by using the resources required to acquire and sell a printer for an alternative purpose. It represents the value of the next best opportunity foregone. In this case, the opportunity cost could be the potential profit from selling other computer products or investing in different business ventures.
After the retailer has purchased the laser printers, the sunk cost associated with each printer is the original purchase price of $500. A sunk cost is a cost that has been incurred and cannot be recovered, regardless of future decisions or actions. Even if the retailer is unable to sell the printers or receives a partial payment from the manufacturer for unsold units, the sunk cost remains the same.
The general manager's argument is incorrect. The argument assumes that the retail price of $200 would result in a loss of $300 on each printer sold ($500 purchase price minus $200 selling price). However, this perspective overlooks the fact that the manufacturer will pay the retailer 30 percent of the original price for any unsold printers. If the retailer sells a printer for $200, it would still receive $150 ($500 * 30%) from the manufacturer, reducing the loss to $150 per printer. Therefore, while selling at $200 may not be ideal, it would result in a smaller loss compared to maintaining the original retail price.
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immediately upon receipt of cash, a responsible employee should
Immediately upon receipt of cash, a responsible employee should prepare a remittance listing
A remittance listing is a document that provides a detailed breakdown of cash received and the associated payments or transactions. It helps in accurately recording and documenting the cash received and ensures proper reconciliation with the company's financial records. While it is generally considered a good practice for responsible employees to prepare a remittance listing promptly after receiving cash, the specific procedures may vary depending on the company's policies and internal controls.
Here are the general steps involved in preparing a remittance listing:
Count and verify the cash: Upon receiving cash, the responsible employee should carefully count and verify the amount to ensure it matches the stated payment or transaction.Gather necessary information: Collect all relevant details related to the cash received, such as the payer's name, payment method, invoice or account number, and any additional relevant information required for accurate record-keeping.Prepare the remittance listing: Create a document or spreadsheet where you can record the details of each transaction. Include columns for the payer's name, payment amount, payment method, invoice or account number, and any other relevant fields based on your company's requirements.Enter the information: Enter the collected information into the remittance listing document for each transaction, ensuring accuracy and completeness. Double-check the entries to minimize errors.Reconcile the listing with cash received: Verify that the total cash amount recorded in the remittance listing matches the actual cash received. This step helps identify any discrepancies or errors that may have occurred during the counting or recording process.Submit for review and approval: Once the remittance listing is prepared and reconciled, it should be submitted to a supervisor or the appropriate authority for review and approval. This step ensures accountability and provides an opportunity for oversight and verification.Maintain proper documentation: Retain a copy of the remittance listing along with any supporting documents, such as receipts or payment slips, for future reference and audit purposes. Organize the documents securely as per your company's record-keeping policies.Remember, it's important to follow your company's specific procedures and internal controls when preparing a remittance listing. These steps serve as a general guideline, but the exact process may vary based on your organization's policies and requirements.
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Management has asked each department for two ways users can protect themselves online. What would you tell them?
The two ways users can protect themselves online is as follows mentioned below.
Strong and Unique Passwords: Encourage users to create strong and unique passwords for their online accounts. A strong password should be at least 8-12 characters long and include a combination of uppercase and lowercase letters, numbers, and special characters.
It is important to avoid using common or easily guessable passwords, such as birthdates or simple words. Additionally, users should avoid reusing passwords across multiple accounts, as this can increase the risk of a security breach. Utilizing a password manager can help users generate and securely store complex passwords.
Awareness of Phishing Attacks: Educate users about the risks of phishing attacks and how to identify and avoid them. Phishing is a fraudulent attempt to obtain sensitive information, such as usernames, passwords, or credit card details, by disguising as a trustworthy entity through email, phone calls, or malicious websites.
Users should be cautious when clicking on links or downloading attachments from unknown sources, and they should verify the legitimacy of websites or emails before providing any personal or financial information. Encourage users to report any suspicious emails or websites to the appropriate IT department or authorities.
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Apisco Inc. has market value of $560 million and 10 million shares outstanding. Selfcut Department Store has market value of $95 million and 5 million shares outstanding. Apisco is contemplating acquiring Selfcut. Apisco's CFO concludes that the combined firm with synergy will be worth $700 million, and Selfcut can be acquired at a price of $112 million.
If the acquisition is by stock, how many shares should be exchanged for all the shares of Selfcut to make the value of the stock offer equivalent to the cash offer of $112 million?
Group of answer choices
2,427,805
1,805,917
2,000,000
1,588,235
1,904,762
To make the value of the stock offer equivalent to the cash offer of $112 million, we need to find the number of shares that would be exchanged.
Therefore, if the acquisition is by stock, Apisco Inc. should exchange 2 million shares for all the shares of Selfcut.
correct answer is 2,000,00
The value of the stock offer can be calculated by multiplying the number of shares exchanged by the market price per share.
Let's denote the number of shares of Selfcut to be exchanged as "X."
We have the following information:
Apisco Inc. market value = $560 million
Apisco Inc. shares outstanding = 10 million
Selfcut Department Store market value = $95 million
Selfcut Department Store shares outstanding = 5 million
Combined firm value with synergy = $700 million
Price to acquire Selfcut = $112 million
To calculate the market price per share for Apisco Inc., we divide the market value by the number of shares outstanding:
Apisco Inc. market price per share = $560 million / 10 million = $56 per share
To make the value of the stock offer equivalent to the cash offer, we set up the following equation:
(X shares) * ($56 per share) = $112 million
Solving for X:
X = $112 million / $56 per share = 2 million shares
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You find a pale and sweaty maintenance worker who complains of trouble breathing and of the feeling of a heavy weight on his chest. After activating EMS, what should you do next?
If you find a maintenance worker who complains of trouble breathing, feels a heavy weight on their chest, and appears pale and sweaty, it could be indicative of a potentially serious medical condition such as a heart attack. In this situation, it is crucial to take immediate action to help the individual. After activating EMS (Emergency Medical Services) by calling the appropriate emergency number, you should:
1. Stay with the worker: Provide reassurance and let them know that help is on the way. Encourage them to stay calm and avoid any physical exertion.
2. Assist with prescribed medication: If the worker carries any prescribed medication for a known condition like angina, such as nitroglycerin, help them take it as directed.
3. Monitor vital signs: Keep an eye on the worker's condition. If they lose consciousness, check for breathing and initiate CPR if necessary. Be prepared to provide CPR until professional medical help arrives.
4. Gather information: If possible, gather relevant information about the worker's medical history, any known allergies, or any recent activities or events that might be relevant to their current condition. This information can be helpful for the medical professionals who will be providing treatment.
Remember, it is essential to prioritize the worker's well-being and rely on professional medical assistance. The actions outlined above aim to support the worker and maintain their safety until professional help arrives.
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On its December 31, 2010 balance sheet, Calhoun Company reported a 10,000 debit balance in its Securities FV Allowance - FVTOCI account (pro-asset). There was no change in 2011 in the composition of Calhoun's FVTOCI investments held. The following information pertains to that portfolio:
Security Cost FV - 12/31/11
X 125,000 160,000
Y 100,000 95,000
Z 175,000 125,000
The amount loss reported as a component of comprehensive income for the year ending December 31, 2011 is: A. 30,000. B. 20,000. C. 10,000. D. 0.
The amount loss reported as a component of comprehensive income for the year ending December 31, 2011 is A. $30,000.
The Securities FV Allowance - FVTOCI account is a contra-asset account that is used to reflect the decline in fair value of available-for-sale securities held by the company. The debit balance in this account indicates that there was an unrealized loss on these investments as of December 31, 2010. In 2011, the fair values of the securities held by Calhoun Company were as follows:
- Security X: Fair value increased from $125,000 to $160,000, resulting in a gain of $35,000.
- Security Y: Fair value decreased from $100,000 to $95,000, resulting in a loss of $5,000.
- Security Z: Fair value decreased from $175,000 to $125,000, resulting in a loss of $50,000.
Considering the losses and gains, the net loss on the portfolio for the year 2011 is $50,000 - $5,000 = $45,000.
Since the initial debit balance in the Securities FV Allowance - FVTOCI account was $10,000, the increase in the loss for the year 2011 would be $45,000 - $10,000 = $35,000.
However, the question asks for the amount reported as a component of comprehensive income, which means it includes both realized and unrealized gains and losses. Therefore, the amount loss reported as a component of comprehensive income for the year ending December 31, 2011 is $35,000 + $10,000 = $30,000 (option A).
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The cost leadership strategy is intended to generate a competitive advantage by achieving costs that are lower than all competitors. Using Porter’s Five Forces, analyze how cost leadership helps neutralize each of the major threats in an industry.
The cost leadership strategy is a business technique aimed at achieving lower costs than other competitors and gaining a competitive edge. According to Michael Porter's Five Forces, it is a technique that helps to neutralize each of the significant threats in an industry.
The five forces that Porter established as the foundation of his theory are:1. Threat of new entrants2. Bargaining power of suppliers3. Bargaining power of buyers4. Threat of substitute products or services5. Rivalry among existing competitorsWhen implementing a cost leadership strategy, a company attempts to reduce its costs to the lowest level feasible while maintaining product quality.
When a company employs this strategy, the following are some of the advantages it achieves:Low prices for products or servicesHigher market share due to lower pricesEase of adapting to price changes from competitorsIncreased barriers to entry for new competitors
Reduced bargaining power of suppliers and buyersReduced risk of substitute products or servicesThe following is how cost leadership helps neutralize each of the significant threats in an industry:1. Threat of new entrants: This threat is reduced by high cost levels, which make it difficult for new competitors to enter the market.2. Bargaining power of suppliers:
High cost levels reduce supplier bargaining power because they require more money to stay in business and can be substituted with cheaper alternatives.3. Bargaining power of buyers: Cost leadership allows companies to sell goods and services at lower prices, giving them an edge in negotiations with buyers.4. Threat of substitute products or services:
Lower prices make it difficult for substitute products or services to compete.5. Rivalry among existing competitors: This threat is reduced when companies can sell at lower prices without sacrificing quality, making it challenging for competitors to compete on price alone.
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diversity and conclusion unit 6. my instructor would like to know what my approach would look like ..... consider this...... you are the manager..... two women in your group that refuse to work with three other women and one man..... that you are responsible for. they are rude nasty to each other. they don't socialize or even talk with each other. it is clear that they come from different backgrounds........ they dress. speak, look and behave differently..... but have the skills needed for the job. using the tools you described.. how would you manage this situation and what would you do if they ultimately refuse to work with each other? so I'm guessing, me to use what you gave me before with the do's and don'ts I guess he want me to use that information thank you
Diversity in conclusion unit 6As a manager, in case two women in your group refuse to work with three other women and one man, you will have to understand that diversity exists and it is bound to be seen in all aspects of life.
People have different backgrounds, cultures, beliefs, values, dressing, and behavior, and it should not be an issue as long as the job is getting done.
In this regard, managing such a situation requires the following tools:
1. Effective communication,
2. Respect for diversity,
3. Problem-solving and decision-making skills,
4. Conflict resolution and mediation,
5. Positive reinforcement and feedback,
6. Active listening.
7. Encourage team building activities, such as social outings, lunches, or team building exercises to build relationships, boost morale, and create a sense of belonging.
Within this scenario, you should consider team-building activities that can bring the team together. If the two women still refuse to work with the other team members, consider seeking an external mediator to find out the root of the conflict and help the parties resolve it.
It's important to remain professional and focused on the task at hand. If the two women continue to refuse to work with the other team members, disciplinary action may be necessary. However, this should only be a last resort, after all other options have been exhausted.
Overall, managing diversity in the workplace requires an open mind, respect for others, and the ability to find solutions to any conflict that arises.
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1) The ER between the Swiss franc and the US dollar is one to one in the spot market. The interest rates in Switzerland and the US are -.01 and .03 respectively. Swiss franc. What kind of arbitrage will induce a profit for you, if the spot rate is 1.05 Swiss francs equal $1? Assume you start with $1 million.
2) Expound on interest parity theory in the aforementioned context. Is the above situation sustainable?
The ER between the Swiss franc and the US dollar is one to one in the spot market. The interest rates in Switzerland and the US are -.01 and .03 respectively.
1) Contributing in Switzerland: On the off chance that we change over $1 million into Swiss francs at the spot rate, we would get 1.05 million Swiss francs. By contributing this sum in Switzerland at an intrigued rate of -0.01, after one year, the speculation would be worth: 1.05 million * (1 - 0.01) = 1.0395 million Swiss francs
2) Contributing within the US: If we convert $1 million into Swiss francs and after that change over it back to dollars at the spot rate, we would have: 1.05 million / 1.05 = $1 million
By contributing this sum within the US at an intrigued rate of 0.03, after one year, the speculation would be worth: $1 million * (1 + 0.03) = $1.03 million
Comparing the returns, it is obvious that contributing within the US yields the next return. Hence, the arbitrage opportunity is to change over $1 million into Swiss francs, change over it back to dollars at the spot rate, and contribute within the US to win the next return.
In the given setting, the intrigued rate within the US is higher than the intrigued rate in Switzerland (0.03 vs. -0.01). Concurring with intrigued equality hypothesis, we would anticipate the Swiss franc to devalue in esteem relative to the US dollar to counterbalance the intrigued rate differential.
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The introduction of expectations in the goods market model makes the IS curve flatter, although it is still downward sloping.
In the goods market model, the introduction of expectations causes the IS (investment-savings) curve to become flatter while still maintaining a downward slope. This implies that changes in interest rates have a smaller impact on investment and output, reflecting the influence of future expectations on current economic decisions.
The IS curve represents the relationship between interest rates and the level of output in the goods market. In a basic goods market model, the IS curve is downward sloping, indicating that as interest rates decrease, investment increases, leading to higher output.
When expectations are introduced into the model, it affects investment decisions. If individuals have positive expectations about future economic conditions, they may be more willing to invest at higher interest rates, expecting higher returns in the future. Conversely, if expectations are negative, individuals may be more cautious and less willing to invest, even at lower interest rates.
This change in expectations alters the relationship between interest rates and investment, resulting in a flatter IS curve. A flatter IS curve implies that changes in interest rates have a smaller effect on investment and output. The impact of interest rate changes is dampened by the influence of expectations on investment decisions, as individuals consider future prospects when determining their investment levels.
Therefore, the introduction of expectations in the goods market model leads to a flatter IS curve, reflecting the role of expectations in shaping investment behavior and its impact on output.
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Shady Inc. manufactures outdoor umbrellas. The company has the capacity to produce 100,000 units per year, but it currently produces and sells 75,000 units per year. The following information relates to current production:
Sales price per unit $42
Variable costs per unit:
Manufacturing $25
Marketing and administrative $10
Total fixed costs:
Manufacturing $79,000
Marketing and administrative $25,000
If a special sales order is accepted for 5,500 umbrellas at a price of $42 per unit, fixed costs remain unchanged, and no variable marketing and administrative costs will be incurred for this order, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)
A. Increase by $38,500
B. Increase by $231,000
C. Increase by $93,500
D. Decrease by $93,500
The answer is: D. Decrease by $93,500.
Shady Inc. manufactures outdoor umbrellas. The company has the capacity to produce 100,000 units per year, but it currently produces and sells 75,000 units per year.
The following information relates to current production:Sales price per unit $42Variable costs per unit:Manufacturing $25Marketing and administrative $10Total fixed costs: Manufacturing $79,000 Marketing and administrative $25,000The operating income for Shady Inc can be calculated as follows:
Operating income = Total Sales - Total Variable Costs - Total Fixed CostsThe total sales of Shady Inc is calculated as $42 x 75,000 = $3,150,000
The total variable cost of Shady Inc can be calculated as follows:Total variable cost = Manufacturing Variable Cost + Marketing and Administrative Variable CostTotal manufacturing variable cost = 75,000 x $25 = $1,875,000
Total marketing and administrative variable cost = 75,000 x $10 = $750,000Total variable cost = $1,875,000 + $750,000 = $2,625,000Total fixed cost = $79,000 + $25,000 = $104,000
Therefore,Operating income = Total Sales - Total Variable Costs - Total Fixed Costs= $3,150,000 - $2,625,000 - $104,000= $421,000 Now, if a special sales order is accepted for 5,500 umbrellas at a price of $42 per unit, fixed costs remain unchanged, and no variable marketing and administrative costs will be incurred for this order.
The total variable cost for this special sales order can be calculated as follows:Variable manufacturing cost = 5,500 x $25 = $137,500Variable marketing and administrative cost = $0Total variable cost = $137,500 + $0 = $137,500
The revenue earned from the special sales order = $42 x 5,500 = $231,000Operating income for this special order can be calculated as follows:Operating income = Total Revenue - Total Variable Cost - Total Fixed Costs= $231,000 - $137,500 - $104,000= -$10,500.
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in 250 words explain what are product market stakeholders and
their importance.
Product market stakeholders are individuals or groups who have a direct or indirect interest in a company's products or services and can significantly impact the success or failure of a business in the marketplace. These stakeholders include customers, suppliers, competitors, distributors, and regulatory bodies, among others. Understanding and effectively managing the relationships with these stakeholders is crucial for a company's long-term success and sustainability.
Customers are one of the most important product market stakeholders. They are the end-users of the products or services and their satisfaction and loyalty are essential for the company's profitability. By meeting customer needs and providing value, companies can build strong relationships, foster brand loyalty, and gain a competitive advantage in the market.
Suppliers are another important stakeholder group. They provide the necessary inputs, materials, or components for the production of goods or services. Maintaining positive relationships with suppliers is crucial for ensuring a reliable supply chain, securing favorable pricing, and maintaining product quality.
Competitors are also significant stakeholders as they operate in the same market and vie for the same customers. Understanding the competitive landscape and effectively positioning products or services against competitors is essential for differentiation and market success.
Distributors play a vital role in getting products to customers. They help with product placement, logistics, and expanding the reach of products into different markets. Building strong partnerships with distributors can enhance a company's distribution network and increase market penetration.
Regulatory bodies and government agencies are critical stakeholders, especially in highly regulated industries. Compliance with regulations and maintaining positive relationships with these stakeholders is crucial for avoiding legal issues, ensuring product safety, and meeting industry standards.
Overall, product market stakeholders are essential for the success of a business. By understanding their needs, expectations, and motivations, companies can tailor their products or services to meet market demands, build mutually beneficial relationships, and achieve long-term success in the competitive marketplace. Effectively managing these relationships can lead to increased customer satisfaction, market share, and ultimately, profitability.
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ATT Manufacturing Co. is planning to product new type of desks. Company uses MARR as 10% per year. Evaluate the following two alternatives by Present Worth Analysis using Least Common Multiple (LCM) technique. Select the PW value of Alternative X.
The task is to evaluate two alternatives using Present Worth Analysis with the Least Common Multiple (LCM) technique and select the Present Worth (PW) value of Alternative X.
Present Worth Analysis is a financial analysis method used to compare different investment alternatives by converting their cash flows into their equivalent present values at a specified discount rate.
The Least Common Multiple (LCM) technique is a method that allows for the comparison of cash flows of different lengths by finding the least common multiple of their time periods.
To solve the problem, we would need the cash flows and their respective time periods for Alternative X and the other alternative. Using the LCM technique, we determine the common time period for both alternatives and discount each cash flow to its present value using the given Minimum Attractive Rate of Return (MARR) of 10% per year.
The Present Worth (PW) value of each alternative is calculated by summing the present values of their cash flows.
Once the calculations are performed, the PW value of Alternative X can be identified and selected based on which alternative yields the higher PW value.
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_________ is the shortest book in the old testament.
The shortest book in the Old Testament is the Book of Obadiah. It consists of only one chapter with 21 verses. the Book of Obadiah is a prophetic book that focuses on the judgment and downfall of the nation of Edom.
Edom, the descendants of Esau, had mistreated their brother Israel and rejoiced in their misfortune. The book contains a message of condemnation against Edom and a promise of restoration for Israel. Despite its brevity, it conveys a powerful message about God's justice and faithfulness to His chosen people.
The Book of Obadiah is the shortest book in the Old Testament, consisting of only one chapter with 21 verses. It is a prophetic book that addresses the nation of Edom, the descendants of Esau, who had a tumultuous relationship with their brother Israel. The book condemns Edom for their mistreatment of Israel and their rejoicing in Israel's misfortune. It speaks of God's judgment upon Edom and their ultimate downfall. At the same time, it offers a message of hope and restoration for Israel, assuring them of God's faithfulness and justice. Despite its brevity, the Book of Obadiah conveys significant themes of justice, sibling rivalry, and divine sovereignty.
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Private equity (PE) refers to capital investment made into companies that are not publicly listed or traded, and the capital mainly comes from institutional investors, such as pension funds, and accredited investors who are financially sophisticated enough to bear the risks. Most companies start off as private with the goal of going public someday; some public companies can also sell out their public shares if they see more benefits in the private sector. In both situations, the offerings of private equity firms can help.
Imagine you are starting a new private equity firm. You, as a general partner (GP), intend to raise a private equity fund of $300 million. With that fund, you plan to invest in companies you have identified and researched. After these investments are exited, you will distribute returns to your investors, limited partners (LPs). These distributions are unlikely to happen for several years. In other words, the LP capital is locked into the fund for many years.
Why do you think this illiquidity is a characteristic of PE investments?
Illiquidity is a characteristic of PE investments because the money invested in private equity firms is usually locked up for a long time, making it difficult for investors to access their capital when they need it.
Private equity (PE) investment is one in which capital investment is made into non-publicly traded companies. The capital is usually provided by institutional investors such as pension funds, and sophisticated investors who are willing to take on risks. LP capital is locked into the fund for many years, which is why illiquidity is a characteristic of PE investments. LPs are aware of this when they enter into a private equity fund agreement, and they understand that the capital they invest will be locked into the fund for several years.
Investors who do not have an investment horizon of at least five to seven years or more are typically discouraged from investing in private equity firms. LPs must commit a large sum of money for a long time to invest in private equity firms. This is one of the reasons why the capital invested in PE firms is regarded as illiquid and a characteristic of PE investments.
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Suppose that a firm has estimated its demand curve as q = 172,864 - 59*q, where P is the price per unit and q is the quantity of units produced. What is the firm's marginal revenue equal to when it produces 2,786 units? Please round to two decimal places. (Hint: this is the demand, not the inverse demand!)
We need to multiply the derivative of the demand function with respect to quantity (q) in order to determine the marginal revenue. q = 172,864 - 59q is the formula for the demand function. We get -59 when we take this function's derivative with regard to q. Therefore, when the company produces 2,786 units, the marginal revenue is equal to -592,786 = -$164,774
Demand in economics refers to a consumer's desire to buy products and services as well as their readiness to pay a given price for them. The amount requested of an item or service often decreases as its price rises. The amount required will rise in response to a drop in the cost of a commodity or service.
Because it makes sense and organically happens throughout nearly any day, demand is a concept that both consumers and businesses are highly acquainted with. Customers who are keeping an eye on particular things, for instance, could buy more of them when the prices are low.
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Which of the following is an example of an adjusting entry?
a. Recording the purchase of supplies on account
b. Recording depreciation expense on a truck
c. Recording the billing of customers for services rendered.
Recording depreciation expense on a truck is an example of an adjusting entry.
An adjusting entry is made at the end of an accounting period to ensure that the financial statements reflect the correct account balances and adhere to the matching principle. Adjusting entries are necessary to recognize revenues and expenses in the period in which they are earned or incurred, even if the associated cash transactions have not occurred.
Recording depreciation expense on a truck is an example of an adjusting entry because it recognizes the allocation of the truck's cost over its useful life as an expense. Depreciation is a non-cash expense, and adjusting entries are made to reflect the gradual wear and tear or obsolescence of long-term assets.
Option a, recording the purchase of supplies on account, is an example of a regular entry to record a transaction. It does not involve adjusting the accounts at the end of an accounting period.
Option c, recording the billing of customers for services rendered, is also a regular entry to record the revenue earned when services are provided. It does not involve adjusting the accounts at the end of an accounting period.
Therefore, only option b, recording depreciation expense on a truck, is an example of an adjusting entry.
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Six months ago, Alexander opened a new branch office of his company, Ty-D-Homes, in San Francisco. The San Francisco office is his sixth office—he already had three offices in Los Angeles and two in San Diego. His business provides home cleaning services for busy working people and families. The cleaning industry is booming, and Alexander’s customer base has been steadily climbing. However, even with the growth in absolute customer numbers that Alexander has been experiencing, he knows that his market share is dwindling. In other words, his competitors are growing at a pace faster than his. Alexander’s sense is that this is due to their higher customer retention rates. Since the industry as a whole is growing, both he and his competitors are acquiring new customers at a steady rate, but because his competitors are better able to hold on to their customers, their growth is outpacing his. Whereas it is tempting for Alexander to focus on his steadily climbing customer numbers and ignore his dwindling market share and low customer retention rates, he knows that this would be devastating to his future success. Like all business owners, he understands that customer retention is crucial to profitability. He also realizes that low customer retention rates are a signal that things are not going as well in his business as he would like them to be. Alexander knows he needs to address this problem head-on. Why is he losing customers? Who is he losing, and why?
Alexander needs to prioritize addressing the low customer retention rates to ensure future success. By improving service quality, communication, and customer satisfaction, he can enhance customer loyalty and regain market share.
Alexander is losing customers primarily due to low customer retention rates. While his company is acquiring new customers, his competitors are better able to hold on to their existing customers, leading to a faster growth rate for his competitors and a dwindling market share for Alexander. This indicates that his competitors are providing a higher level of customer satisfaction and building stronger customer loyalty.
To identify who Alexander is losing as customers, it is crucial to analyze the factors that contribute to customer retention. It could be that his company is failing to meet customer expectations in terms of service quality, reliability, or responsiveness. Poor communication, lack of personalized attention, or inconsistent service delivery could also be factors driving customers away.
Additionally, Alexander should consider the competitive landscape. His competitors might be offering better pricing, promotional offers, or additional services that attract customers away from Ty-D-Homes. Conducting market research and analyzing customer feedback can provide valuable insights into why customers are choosing competitors over his company.
In conclusion, Alexander needs to prioritize addressing the low customer retention rates to ensure future success. By improving service quality, communication, and customer satisfaction, he can enhance customer loyalty and regain market share. It is crucial for him to understand why customers are leaving and to adapt his business strategies accordingly, keeping in mind the changing needs and expectations of his target market.
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Fantasy Transport Company has average invested capital of $750,000 and a target return on investment of 12%. The total cost per unit is $10 based on a volume level of 20,000 units. Fantasy’s markup percentage on total cost is:
Multiple Choice
a 3.200%.
b 45.0%.
c 14.7%.
d 26.7%.
e None of the answers is correct.
In this scenario, we are given that Fantasy Transport Company has an average invested capital of $750,000 and a target return on investment of 12%. the correct answer is (b) 45.0%. Fantasy Transport Company's markup percentage on total cost is approximately 45.0%.
The total cost per unit is $10, and the volume level is 20,000 units. We are asked to determine Fantasy's markup percentage on total cost. To calculate the markup percentage on total cost, we need to determine the desired profit amount. The desired profit is the target return on investment, which is 12% of the average invested capital.
Desired profit = Average invested capital * Target return on investment
Desired profit = $750,000 * 0.12 = $90,000
Next, we need to calculate the total cost of producing 20,000 units.
Total cost = Total cost per unit * Volume level
Total cost = $10 * 20,000 = $200,000
Finally, we can calculate the markup percentage on total cost.
Markup percentage on total cost = (Desired profit / Total cost) * 100
Markup percentage on total cost = ($90,000 / $200,000) * 100 ≈ 45.0%
Therefore, the correct answer is (b) 45.0%. Fantasy Transport Company's markup percentage on total cost is approximately 45.0%.
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You hold an equally weighted portfolio of 4 shares, lets us call them A, B, C and D. (a) Suppose the portfolio value is $1 million and the share prices are $250 for A, $500 for B, $1000 for C, and $2,000 for D. How many do you hold of each share? (b) After one month you have ordinary (not log) returns of 10% on A, –5% on B, 6% on C, and 4% on D. What is the new value of your portfolio? (c) Given these returns, how many of each share should you buy or sell to rebalance to an approximately equally-weighted portfolio again? Note: Your rebalanced portfolio will only be approximately equally weighted because fractional share amounts cannot be bought or sold, so you must round your answers to the nearest integer.
(a) For D, we hold 125 shares because 125 × $2,000 = $250,000 , (b) New value of portfolio = $1,312,500 (c) we need to buy 134 shares of A, sell 26 shares of B, sell 9 shares of C, and sell 7 shares of D .
(a) We are given that the portfolio value is $1 million and the share prices are $250 for A, $500 for B, $1000 for C, and $2,000 for D.
We need to find how many of each share we hold. Since we have an equally weighted portfolio, we can allocate 25% of our portfolio to each of the four shares.
Therefore, the amount invested in each share is $250,000.
The number of shares we hold for each stock is as follows:
For A, we hold 1,000 shares because 1,000 × $250 = $250,000
For B, we hold 500 shares because 500 × $500 = $250,000For C, we hold 250 shares because 250 × $1,000 = $250,000For D, we hold 125 shares because 125 × $2,000 = $250,000
(b) The ordinary return is calculated as follows:
Ordinary return = (New Price – Old Price)/Old Price
We need to find the new price for each stock.
The new prices are as follows:
For A, the new price is $275 because 1.1 × $250 = $275
For B, the new price is $475 because 0.95 × $500 = $475
For C, the new price is $1,060 because 1.06 × $1,000 = $1,060
For D, the new price is $2,080 because 1.04 × $2,000 = $2,080
The new value of the portfolio is the sum of the new values of each of the four stocks:
New value of portfolio = (Number of shares of A × New price of A) + (Number of shares of B × New price of B) + (Number of shares of C × New price of C) + (Number of shares of D × New price of D)
New value of portfolio = (1,000 × $275) + (500 × $475) + (250 × $1,060) + (125 × $2,080)
New value of portfolio = $1,312,500
(c) The first step is to calculate the return of each stock. The return is the change in the stock price over the month divided by the old price.
The returns are as follows:
For A, the return is 0.10 or 10%.
For B, the return is -0.05 or -5%.
For C, the return is 0.06 or 6%.
For D, the return is 0.04 or 4%.
Next, we need to calculate the target value of each stock.
Since we have an equally weighted portfolio, each stock should represent 25% of the portfolio after rebalancing. Therefore, the target value for each stock is 25% of the new value of the portfolio.
We already calculated the new value of the portfolio as $1,312,500.
Therefore, the target value for each stock is $328,125.
Next, we need to calculate the difference between the current value and the target value for each stock.
The differences are as follows:
For A, the difference is $33,750 because $328,125 – (1,000 × $275) = $33,750
For B, the difference is -$12,500 because $328,125 – (500 × $475) = -$12,500
For C, the difference is -$9,375 because $328,125 – (250 × $1,060) = -$9,375
For D, the difference is -$12,500 because $328,125 – (125 × $2,080) = -$12,500
To rebalance the portfolio, we need to buy more of the stocks that are below the target value and sell the stocks that are above the target value.
We should buy or sell enough shares to bring the difference between the current value and the target value as close to zero as possible. We should round our answers to the nearest integer.
Therefore, we need to buy 134 shares of A, sell 26 shares of B, sell 9 shares of C, and sell 7 shares of D.
The new number of shares we should hold for each stock is as follows:
For A, we should hold 1,134 shares because 1,000 + 134 = 1,134
For B, we should hold 474 shares because 500 – 26 = 474
For C, we should hold 241 shares because 250 – 9 = 241
For D, we should hold 118 shares because 125 – 7 = 118
Therefore, we should buy 134 shares of A, sell 26 shares of B, sell 9 shares of C, and sell 7 shares of D. The new number of shares we should hold for each stock is 1,134 shares of A, 474 shares of B, 241 shares of C, and 118 shares of D.
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"Do you see any truly competent workers? They will serve kings rather than working for ordinary people." – Proverbs 22:29
This DQ talks about structural unemployment and how it relates to keeping your skills up to date. What is structural unemployment, and how does it relate to this scriptural passage about truly competent workers?
Structural unemployment refers to a type of unemployment caused by a mismatch between the skills and qualifications of workers and the requirements of available job opportunities.
Structural unemployment arises when changes in the economy, technology, or industry render certain skills or occupations obsolete or less in demand. As a result, individuals possessing those skills may struggle to find suitable employment. The passage from Proverbs 22:29 suggests the recognition and appreciation of highly skilled individuals who possess exceptional competence and abilities.
It implies that such competent workers have the opportunity to serve those in positions of authority, symbolized by kings, who value their skills and are willing to employ them. However, the passage also implies that ordinary people, lacking the same level of competence, may face challenges in securing suitable employment due to a potential mismatch between their skills and the requirements of available job opportunities. Therefore, the scripture indirectly relates to the concept of structural unemployment, highlighting the importance of maintaining and developing relevant skills to remain competitive in the labor market.
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The CRA reports remittances received from a regular remitter using the Statement of Account for Current Source Deductions (PD7A).
True
False
The statement "The CRA reports remittances received from a regular remitter using the Statement of Account for Current Source Deductions (PD7A)" is false.
The Statement of Account for Current Source Deductions (PD7A) is a form provided by the Canada Revenue Agency (CRA) to employers to help them report and remit their payroll deductions, including income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums. The PD7A is used by employers to calculate and report the amounts owing to the CRA for payroll deductions.
However, it is the responsibility of the employer, not the CRA, to report and remit the deductions accurately using the PD7A form. The CRA does not report the remittances received from regular remitters. Instead, it receives the remittances and verifies the accuracy of the reported amounts through its own processes and systems.
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On March 15.2020, Stink Inc- issued $946 in principal of frve-year zero coupon bonds on July 1,2020, The company, 50 id the bonds at a $193 discount to par. How much interest expense will Stink record over the life of the bond?
To calculate the interest expense over the life of the bond, need to determine the interest component of the bond's discount. Zero coupon bonds do not pay periodic interest payments, but they are issued at a discount to their face value. The difference between the face value and the issue price represents the interest earned over the life of the bond.
Interest expense refers to the cost incurred by an individual or a business entity for borrowing money. It is the amount of interest paid on outstanding loans, credit cards, or other forms of borrowed capital. Interest expense is a common component of the income statement and is typically listed as a separate line item.
When an individual or a company borrows money, they are charged interest by the lender as compensation for the use of the funds. The interest rate is usually determined by various factors, including the borrower's creditworthiness, the term of the loan, and prevailing market rates.
For businesses, interest expense is considered a tax-deductible expense, which helps reduce the overall taxable income. It is an essential component in determining a company's net interest expense and can have a significant impact on its profitability.
It's important to note that interest expense is different from interest income. Interest income refers to the money earned by an individual or business from investments or loans made to others, while interest expense refers to the money paid by the borrower.
Stink Inc issued $946 in principal of five-year zero coupon bonds on July 1, 2020, at a $193 discount to par. The discount of $193 represents the interest earned over the life of the bond.
To find the interest expense, we divide the discount by the number of years until maturity. In this case, the bond has a five-year maturity.
Interest Expense = Discount / Number of Years until Maturity
Interest Expense = $193 / 5
Interest Expense ≈ $38.60
Stink Inc will record approximately $38.60 in interest expense over the life of the bond.
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2 points You forecast the following levels in year 1 : Accounts Receivable =$137,000; Accounts Payable =$115,000; and Inventory = $43,000. If each of these begins at a level of $0 in year zero, what year 1 incremental cash flow reflects the change in NWC? Enter your answer in dollars and be sure to use a negative sign ( −) if the answer is a cash outflow.
The year 1 incremental cash flow reflecting the change in Net Working Capital (NWC) is -$65,000.
To calculate the change in Net Working Capital, we need to subtract the year 0 levels from the year 1 levels for each component.
The change in Accounts Receivable is $137,000 - $0 = $137,000. This represents an increase in cash flow because as the accounts receivable increase, more cash is tied up in outstanding customer payments.
The change in Accounts Payable is $115,000 - $0 = $115,000. This represents a decrease in cash flow because as the accounts payable increase, less cash is paid out to suppliers.
The change in Inventory is $43,000 - $0 = $43,000. This also represents an increase in cash flow because as inventory levels increase, more cash is tied up in the purchase and storage of goods.
To calculate the overall change in NWC, we sum up the changes in each component: $137,000 + (-$115,000) + $43,000 = $65,000. The negative sign in front of the change in accounts payable indicates a cash outflow. Therefore, the year 1 incremental cash flow reflecting the change in NWC is -$65,000, meaning a cash outflow of $65,000.
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Calculate and analyze the Standardized statements and the
different types of financial ratios by functional categorization of
the National Bank of Canada for 2019, 2020 and 2021
years.
The National Bank of Canada, or NBC, is one of Canada's largest commercial banks. It was founded in 1859 and provides a wide range of banking, wealth management, and financial planning services to individuals, businesses, and institutions.
The following are the standardized statements and financial ratios by functional categorization of the National Bank of Canada for the years 2019, 2020, and 2021:
2019:Net Income: $2,658 million
Total Assets: $273,704 million
Total Liabilities: $246,018 million
Total Equity: $27,686 million
Common Equity Tier 1 Ratio: 11.9%
Return on Equity (ROE): 9.6%
Return on Assets (ROA): 0.97%
Efficiency Ratio: 56.2%
2020:Net Income: $2,361 million
Total Assets: $289,202 million
Total Liabilities: $262,270 million
Total Equity: $26,932 million
Common Equity Tier 1 Ratio: 12.1%
Return on Equity (ROE): 8.8%
Return on Assets (ROA): 0.83%
Efficiency Ratio: 55.7%
2021:Net Income: $2,280 million
Total Assets: $334,188 million
Total Liabilities: $301,903 million
Total Equity: $32,285 million
Common Equity Tier 1 Ratio: 12.5%
Return on Equity (ROE): 7.1%
Return on Assets (ROA): 0.68%
Efficiency Ratio: 57.6%
What is the significance of Standardized Statements?The NBC's standardized statements are important because they provide investors, creditors, and other interested parties with a standardized set of financial statements that are easy to compare across companies.
By using standardized statements, analysts can identify trends and compare performance over time. The NBC's standardized statements are grouped by functional category, such as assets, liabilities, income, and expenses. This makes it easier for analysts to compare the bank's performance to other banks in the same industry.
What are Financial Ratios?Financial ratios are tools used by investors, creditors, and analysts to assess a company's financial health.Ratios are derived from financial statements and are used to measure a company's liquidity, profitability, solvency, and efficiency. Common financial ratios include;
*Current ratio
*Quick ratio
*Debt-to-equity ratio
*Return on equity ratio
*Return on assets ratio.
These ratios can be compared to industry averages or the company's historical ratios to identify trends and potential problems.
What do the Financial Ratios for the National Bank of Canada show?The NBC's financial ratios for the years 2019, 2020, and 2021 show a decline in profitability and efficiency over time. The bank's return on equity (ROE) and return on assets (ROA) ratios have both declined over the three-year period, indicating that the bank is becoming less profitable. Additionally, the bank's efficiency ratio has increased, indicating that it is becoming less efficient at generating revenue. However, the bank's common equity tier 1 ratio has increased, indicating that it has become more solvent over time.
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Abbi is receiving an insurance payout and has a choice of the following when money is worth 3.5% compounded annually: Option 1$7000 per year paid at the end of each year for 7 years Option 2$17000 paid now, \$22 000 paid 5 years from now, and $6000 paid 7 years from now What is the PV of Option 1?
a. $43014 b. $44300 c. $42802 d. $45023
The present value (PV) of Option 1 is approximately $43014. Therefore, the correct answer is (a) $43014.
To calculate the present value (PV) of Option 1, we need to discount the future cash flows back to the present using the given interest rate of 3.5% compounded annually.
Option 1 offers $7000 per year paid at the end of each year for 7 years. We can calculate the PV using the formula for the present value of an annuity:
PV = Cash Flow * [1 - (1 + r)^(-n)] / r
where r is the interest rate and n is the number of years.
Plugging in the values:
Cash Flow = $7000
r = 3.5% or 0.035
n = 7
PV = $7000 * [1 - (1 + 0.035)^(-7)] / 0.035
PV ≈ $43014
Therefore, the present value of Option 1 is approximately $43014.
From the given options, the correct answer is (a) $43014.
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