After the futures contract settles and considering your positions, you will have a total amount of $508,400.00.
Based on the information provided, let's calculate the total amount you will have after the futures contract settles:
Initial Position: On January 1st, you sold a futures contract for C$410,000.00, which will allow you to receive $262,400.00 on March 10th. Buying Canadian Dollars: On February 10th, when the Canadian dollar depreciated to $0.60, you purchased C$410,000.00 for $246,000.00.
Now, let's calculate the total amount:
Initial position (Futures contract): $262,400.00
Buying Canadian dollars: $246,000.00
Total = $262,400.00 + $246,000.00 = $508,400.00
Therefore, after the futures contract settles and considering your positions, you will have a total amount of $508,400.00.
In currency speculation, the goal is to take advantage of exchange rate movements to make a profit. In this case, you capitalized on the depreciation of the Canadian dollar by selling a futures contract and later buying Canadian dollars at a lower exchange rate. By doing so, you were able to profit from the exchange rate difference between the two transactions. However, it's important to note that currency speculation involves risks, including the possibility of exchange rate movements going against your expectations, which could result in losses.
Learn more about currency here:
https://brainly.com/question/32448112
#SPJ11
Antique Treasures (Pty) Limited A number of Antique Treasures (Pty) Limited's customers had, for one reason or another, duplicated payments with the result that their accounts were in credit. In some instances, it was unable to trace the customer and refund the overpayment, and, albeit illegally, it 'squared off' the accounts of these customers by transferring their credit balances to its 'sales' account in its books. You are required to consider whether the amounts transferred by Antique Treasures (Pty) Limited should be included in its gross income.
Antique Treasures (Pty) Limited, under certain circumstances, has transferred the credit balances of some of its customers to its sales account.
It had to square off the accounts of such customers in order to compensate for their overpayments, the reimbursement for which it was unable to locate. The primary issue is whether the amounts transferred by Antique Treasures (Pty) Limited should be included in its gross income or not. According to Generally Accepted Accounting Principles (GAAP), income from any transaction should be recorded when it is earned.
Therefore, the amount that Antique Treasures (Pty) Limited transferred from credit balances to sales account should be included in its gross income. It's worth noting that even though the accounting transfer of credit balance to the sales account was carried out "illegally," the earnings were generated, and they must be treated as such. Since there was no legal means of claiming the overpayments, the company had to resort to such an action, but the earnings generated from the transaction should be recorded as revenue for the company.
Learn more about Antique Treasures here:https://brainly.com/question/30609052
#SPJ11
which of the following correctly describes a repurchase agreement?
A repurchase agreement (repo) refers to the sale of a security with a commitment to repurchase the same security at a specified future date and a designated price. This corresponds to option A.
Option A, "The sale of a security with a commitment to repurchase the same security at a specified future date and a designated price," accurately describes a repurchase agreement.
A repurchase agreement is a transaction commonly used in the financial markets, where one party sells a security to another party with an agreement to repurchase the same security at a later date.
The repurchase price and the repurchase date are predetermined and agreed upon by both parties.
Option B, "The sale of a security with a commitment to repurchase the same security at a future date left unspecified, at a designated price," does not align with the definition of a repurchase agreement.
Repurchase agreements have a specific future date for repurchasing the security.
Option C, "The purchase of a security with a commitment to purchase more of the same security at a specified future date," does not accurately represent a repurchase agreement.
A repurchase agreement involves the sale and subsequent repurchase of the same security, rather than the purchase of additional quantities.
Therefore, the correct answer is option A, as it correctly describes a repurchase agreement.
Question:-
Which of the following correctly describes a repurchase agreement?
a. The sale of a security with a commitment to repurchase the same security at a specified future date and a designated price.
b. The sale of a security with a commitment to repurchase the same security at a future date left unspecified, at a designated price.
c. The purchase of a security with a commitment to purchase more of the same security at a specified future date.
To learn more about, repurchase agreement:-
brainly.com/question/15236301
#SPJ11
explain the differences in how men and women negotiate and how
they are treated by others in negotiation.
Men and women exhibit distinct negotiation styles, and their treatment by others in negotiation settings differs.
Research suggests that men and women often adopt different negotiation strategies. Men tend to be more assertive, competitive, and focused on maximizing personal gains. On the other hand, women often employ more collaborative and cooperative approaches, aiming to create mutually beneficial outcomes.
These divergent styles can stem from societal expectations and gender norms that shape individuals' behavior. Additionally, studies have shown that men are generally evaluated more positively than women in negotiation contexts.
Men's assertiveness is often seen as competent and effective, while women who display similar behavior may face negative perceptions such as being labeled as "bossy" or "aggressive." These biased evaluations can impact women's negotiation outcomes, making it essential to address such disparities and promote equal treatment and opportunities for all individuals in negotiation settings.
Learn more about negotiation strategies here:
https://brainly.com/question/33225624
#SPJ11
Explain
1. Business planning
2. Monthly management accounts.
3. In performance analysis
4. Allocating funds.
5. Operational changes such as
a. Controlling stock levels.
b. Monitoring and controlling o
1. Business planning involves creating a comprehensive strategy and roadmap for achieving the organization's goals and objectives.
2. Monthly management accounts are financial statements that provide a snapshot of a company's financial performance, including revenue, expenses, and profitability, on a monthly basis.
3. Performance analysis involves evaluating and assessing the efficiency and effectiveness of a company's operations and identifying areas for improvement.
4. Allocating funds refers to the process of distributing financial resources to different areas or projects within an organization based on their priorities and expected returns.
5. a. Controlling stock levels involves monitoring and managing the inventory of goods or materials to ensure optimal levels that meet customer demand while minimizing costs.
b. Monitoring and controlling refer to the ongoing process of tracking key performance indicators and implementing measures to ensure that operations are in line with planned objectives.
Business planning is the process of setting goals and objectives for a company and developing strategies and action plans to achieve them. It involves analyzing market conditions, assessing internal capabilities and resources, and identifying opportunities and risks. A well-defined business plan serves as a roadmap for the organization, guiding decision-making and resource allocation.
Monthly management accounts are financial reports prepared on a monthly basis to provide timely and relevant information to management. These accounts include key financial statements such as income statements, balance sheets, and cash flow statements. They help management monitor the financial health of the business, track revenue and expenses, analyze trends, and make informed decisions. Monthly management accounts enable businesses to identify areas of strength or weakness and take corrective actions promptly.
Performance analysis involves evaluating the performance of various aspects of a business, such as sales, production, marketing, and finance. It includes assessing key performance indicators (KPIs), benchmarking against industry standards, and conducting data analysis. Performance analysis helps identify areas of improvement, efficiency gaps, and potential bottlenecks. By understanding the drivers of performance, businesses can make informed decisions to optimize operations, enhance productivity, and achieve strategic goals.
Allocating funds refers to the process of distributing financial resources among different areas or projects within an organization. This involves determining the budgetary requirements of each department or initiative, considering the organization's priorities, objectives, and available funds. Allocating funds requires careful consideration of the expected returns, risks, and alignment with the company's strategic direction. Effective fund allocation ensures that resources are utilized efficiently and effectively, maximizing the organization's overall performance and financial outcomes.
Controlling stock levels involves managing and optimizing the inventory of goods or materials. It includes monitoring stock levels, forecasting demand, and establishing appropriate reorder points and safety stock levels. Controlling stock levels ensures that the right amount of inventory is available to meet customer demand while minimizing carrying costs and avoiding stockouts or overstock situations.
Monitoring and controlling refers to the continuous oversight and management of business operations. It involves tracking performance metrics, comparing them against predetermined targets or benchmarks, and taking corrective actions when necessary. Monitoring and controlling enable businesses to identify deviations from planned objectives, address issues promptly, and ensure that operations are running efficiently and effectively. This process helps maintain consistency, quality, and compliance with established standards and improves overall organizational performance.
Learn more about Business planning: https://brainly.com/question/25311149
#SPJ11
write an operational plan in a solar battery manufacturing and
distribution business.
(Solar Battery Business not a Solar Panel)
The solar battery manufacturing and distribution business is a rapidly growing industry. The global market for solar batteries is expected to reach $100 billion by 2025. This growth is being driven by the increasing demand for renewable energy sources, as well as the declining cost of solar batteries.
This operational plan outlines the key steps involved in starting and operating a solar battery manufacturing and distribution business. The plan covers the following areas:
* Market analysis
* Business model
* Operations
* Marketing and sales
* Financial projections
**Market Analysis**
The first step in starting a solar battery manufacturing and distribution business is to conduct a market analysis. This analysis should identify the target market, the competitive landscape, and the market trends.
The target market for solar batteries includes businesses, governments, and individuals. Businesses are using solar batteries to reduce their energy costs, while governments are using them to meet their renewable energy targets. Individuals are using solar batteries to power their homes and businesses.
The competitive landscape for solar batteries is fragmented. There are a number of small and medium-sized businesses competing in the market. However, there are also a number of large companies, such as Tesla and Panasonic, that are entering the market.
The market trends for solar batteries are positive. The cost of solar batteries is declining, which is making them more affordable. Additionally, the demand for renewable energy sources is increasing, which is driving the demand for solar batteries.
**Business Model**
The business model for a solar battery manufacturing and distribution business can vary depending on the specific company. However, there are some common elements that most businesses will share.
The first element is the manufacturing process. Solar batteries are manufactured using a variety of materials, including lithium-ion, lead-acid, and nickel-metal hydride. The manufacturing process can be complex and requires specialized equipment.
The second element is the distributin process. Solar batteries are distributed through a variety of channels, including direct sales, online sales, and retail sales. The distribution channel will depend on the target market and the company's sales strategy.
The third element is the marketing and sales strategy. The marketing and sales strategy will need to target the specific needs of the target market. The company will need to develop a strong brand and create a compelling value proposition.
**Operations**
The operations of a solar battery manufacturing and distribution business will vary depending on the specific company. However, there are some common elements that most businesses will share.
The first element is the manufacturing process. The manufacturing process will need to be efficient and cost-effective. The company will need to ensure that the quality of the solar batteries is high.
The second element is the distribution process. The distribution process will need to be efficient and reliable. The company will need to ensure that the solar batteries are delivered on time and in good condition.
The third element is the customer service. The customer service will need to be excellent. The company will need to be responsive to customer inquiries and complaints.
**Marketing and Sales**
The marketing and sales strategy for a solar battery manufacturing and distribution business will need to target the specific needs of the target market. The company will need to develop a strong brand and create a compelling value proposition.
The marketing and sales strategy will also need to be aligned with the company's overall business goals. The company will need to determine the specific sales goals and develop a plan to achieve those goals.
**Financial Projections**
The financial projections for a solar battery manufacturing and distribution business will depend on a number of factors, including the size of the business, the target market, and the cost of manufacturing and distribution.
The financial projections will need to be realistic and achievable. The company will need to ensure that the financial projections are based on sound financial assumptions.
**Conclusion*
This operational plan outlines the key steps involved in starting and operating a solar battery manufacturing and distribution business. The plan covers the following areas:
* Market analysis
* Business model
* Operations
* Marketing and sales
* Financial projections
This plan is a starting point for businesses that are considering entering the solar battery manufacturing and distribution industry. The plan will need to be customized to the specific needs of each business.
To know more about manufacturing , click here:-
https://brainly.com/question/29489393
#SPJ11
Abbott, Inc., is expected to maintain a constant 4% annual growth rate in its dividends, indefinitely. If the company has just paad $1 annual dividend and its current price is $101 per share, what comes closest to the required retuim on the company's stock? 5% 6.2% 5.6% 4.5%
The required return on Abbott, Inc.'s stock comes closest to 5% based on the company's current dividend, growth rate, and stock price.
To calculate the required return, we can use the Gordon Growth Model, which considers the dividend yield and the dividend growth rate. Given that Abbott, Inc. has a constant 4% annual growth rate in its dividends and has just paid a $1 annual dividend, we can proceed with the calculation.
First, we calculate the dividend yield by dividing the annual dividend by the current price per share. In this case, the dividend yield is $1 divided by $101, which equals approximately 0.0099 or 0.99%.
Next, we add the dividend yield to the dividend growth rate to obtain the required return. Adding 0.99% to 4% gives us 4.99% or 5%.
Learn more about return here;
https://brainly.com/question/1789817
#SPJ11
Hardy-Furn is a manufacturing company that makes and restores furniture and uses a jobcosting system. Fixed overhead costs are allocated on the basis of direct labour hours. Budgeted fixed overheads for the year ended 31 December 2014 were R4 320000 . The company employs 288 skilled carpenters who work a 40 hour week for 50 weeks per annum. The company had no work in progress at the beginning of the 2014 year. The entire month of January 2014 was spent on job 460, which called for 8000 labour hours. Cost data for January 2014 was as follows:
- Raw materials purchased on account, R365000.
- Raw materials requisitioned for production, R315 000 (70\% direct and 30% indirect).
- R190 000 was incurred in respect of factory labour costs and paid in cash. An analysis of this R190 000 indicates that R80 000 accounts for fringe benefits.
- Depreciation recorded on factory equipment, R72 000.
- Other manufacturing overhead costs incurred were paid for in cash and amounted to R48 000 .
- Manufacturing overhead cost was applied to production on a basis of 40000 labour hours worked during the month.
- The completed job was moved into the finished goods warehouse on 31 January to await delivery to the customer.
REQUIRED:
Prepare the following general ledger accounts for the month of January 2014:
- raw materials
- manufacturing overheads
- work in progress
Here are the general ledger accounts for the month of January 2014 for Hardy-Furn:
Raw Materials Account:
Date | Description | Debit (R) | Credit (R)
Jan 1 | Opening Balance | |
Jan 1 | Raw materials purchased | 365,000 |
Jan 31 | Raw materials used | 315,000 |
Jan 31 | Closing Balance | | 50,000
The closing balance is calculated by subtracting the raw materials used from the opening balance plus purchases.
Manufacturing Overheads Account:
Date | Description | Debit (R) | Credit (R)
Jan 1 | Opening Balance | |
Jan 31 | Depreciation expense | 72,000 |
Jan 31 | Other overhead costs | 48,000 |
Jan 31 | Applied overhead costs | 160,000 |
Jan 31 | Closing Balance | | 40,000
Work in Progress Account:
Date | Description | Debit (R) | Credit (R)
Jan 1 | Opening Balance | |
Jan 31 | Direct labor costs | 190,000 |
Jan 31 | Applied overhead costs | 160,000 |
Jan 31 | Closing Balance | | 350,000
To learn more about accounts follow:
https://brainly.com/question/33068790
#SPJ11
Whatchamacallit Sports (A). Whatchamacallit Sports (Whatchamacallit) is considering bidefing to sell $105,000 of ski equipment to Phang Famly Enterprises of Seoul, Korea. Payment would be due in seven months Since Whatchamacallit cannot find good credit information on Phang. Whatchamacallit wants to protect its credit risk. It is considoring the following financing solution Phang's bank issues a letter of credit on behalf of Phang and agrees to accept Whatchanacallirs draft for $105,000 ove in 5 even months The acceptanci fae would cost Whatchamacailit $475. plus reduce Phang's avalable credi line by $105,000 The bankers' acceptance note of $105,000 would be sold at a 1.9% per annum discount in the money market What is the annualized percentage all-in cost to Whatchamacalit of this bankers' acceptance financing? (NOTE: Assume a 360 -day year.) The discount on the sale of acceptance is ...
The annualized percentage all-in cost of this bankers' acceptance financing to Whatchamacallit is 4.52%.
Here the calculation:
* Discount on the sale of acceptance: $105,000 * 1.9% = $1995
* Annualized interest rate on the discount : $1995 / $105,000 * 360 / 30 = 1.9%
* Total cost of financing: $1995 + $475 = $2470
* Annualized percentage cost: $2470 / $105,000 * 100 = 4.52%
The discount on the sale of acceptance is calculated by multiplying the face value of the bankers' acceptance note by the discount rate. The annualized interest rate on the discount is then calculated by dividing the discount amount by the face value of the note and multiplying by the number of days in a year and the annual interest rate. The total cost of financing is the sum of the discount amount and the acceptance fee. The annualized percentage cost is calculated by dividing the total cost of financing by the face value of the note and multiplying by 100.
In this case, the annualized percentage cost of the bankers' acceptance financing is 4.52%. This means that Whatchamacallit will pay an extra 4.52% per year on the $105,000 loan in addition to the $475 acceptance fee.
Learn more about discount here:
https://brainly.com/question/31870453
#SPJ11
Which of the following statements are incorrect?
A private company cannot offer its securities to the public.
Only a private company can pass written resolutions.
Public and private companies must have at least two directors.
A private limited company does not need to hold an annual general meeting.
A private limited company may only be limited by shares.
Give one correct answer.
I., II. and IV. only
I. and II. only
III. and V. only
II., III. and V. only
The correct option is a. I,II and IV only. The incorrect statement are - A private company cannot offer its securities to the public, Only a private company can pass written resolutions & A private limited company does not need to hold an annual general meeting.
I. A private company cannot offer its securities to the public.
This statement is incorrect. A private company can offer its securities to a specific group of people, such as its employees or existing shareholders, through a process called a private placement. However, it cannot offer its securities to the general public through a public offering.
II. Only a private company can pass written resolutions.
This statement is incorrect. Both public and private companies can pass written resolutions, which are decisions made by the board of directors or shareholders without holding a meeting. Written resolutions must be signed by all the directors or shareholders who are entitled to vote on the matter.
IV. A private limited company does not need to hold an annual general meeting.
This statement is incorrect. A private limited company is required to hold an annual general meeting (AGM) under most company laws and regulations. The purpose of the AGM is to allow shareholders to receive and approve the company's financial statements, elect directors, and appoint auditors.
To know more about private company here
https://brainly.com/question/7494884
#SPJ4
With relevant examples from the business environment and your own experience, evaluate any five (5) barriers to effective communication.
Five common barriers to effective communication include language barriers, cultural differences, technological issues, lack of clarity, and noise/distractions.
Language barriers can impede communication when individuals involved in the conversation do not share a common language.
For example, in a multinational company, employees from different countries may struggle to understand each other, leading to misunderstandings and misinterpretations.
Cultural differences also pose a significant barrier to effective communication.
Cultural norms, values, and communication styles vary across regions, and these differences can lead to misunderstandings and conflicts.
For instance, a direct communication style commonly used in Western cultures might be perceived as rude or confrontational in some Asian cultures.
Technological issues can hinder communication, especially in the era of remote work and virtual meetings.
Poor internet connectivity, glitchy software, or inadequate technical skills can result in communication breakdowns, delays, and frustration among team members.
Lack of clarity in communication can occur when messages are ambiguous or poorly articulated. This can lead to confusion, misunderstandings, and ineffective decision-making. For instance, if a manager provides vague instructions to their team, it can result in tasks being performed incorrectly or not at all.
To learn more about
Noise and distractions can also hinder effective communication. Physical distractions such as loud background noise, interruptions, or a chaotic work environment can make it difficult for individuals to focus on and comprehend the message being conveyed.
Similarly, digital distractions such as notifications, emails, or social media can divert attention and hinder effective communication during virtual interactions.
To overcome these barriers, businesses can implement various strategies.
These include providing language training programs, promoting cultural awareness and diversity training, ensuring reliable and user-friendly communication technology, encouraging clear and concise communication practices, and creating a conducive work environment that minimizes distractions.
To learn more about multinational company here brainly.com/question/13731579
#SPJ11
Revenue is defined as possession of economic resources. inflow of economic benefits resulting from ordinary activities. increases in economic resources from incidental transactions. residual interest in economic resources of an entity.
Revenue is defined as the inflow of economic benefits resulting from ordinary activities. It represents the increase in economic resources that an entity obtains through its core business operations.
Revenue is a key concept in accounting and financial reporting. It refers to the inflow of economic benefits, typically in the form of cash or other assets, that an entity receives as a result of its ordinary activities.
These ordinary activities can include sales of goods, provision of services, rental income, interest earned, and other similar transactions related to the entity's primary operations.
Revenue is recognized when it is earned and realizable. In other words, it is recorded when the goods or services have been delivered, and the entity has the right to receive payment or other economic benefits.
Revenue is distinct from other types of economic inflows. It does not include increases in economic resources from incidental transactions or unrelated activities. Additionally, revenue represents the residual interest in the economic resources of an entity after deducting expenses and other liabilities.
Overall, revenue reflects the economic value generated by an entity's core business operations and is a fundamental indicator of its financial performance.
Learn more about business operations here; brainly.com/question/30415374
#SPJ11
corporations can be good citizens by promoting goals that society deems worthwhile. true or false
The given statement is true Corporations can be considered good citizens by promoting goals that society deems worthwhile.
In today's world, there is an increasing expectation for corporations to go beyond their primary objective of generating profits
and also contribute to the betterment of society. This concept is often referred to as corporate social responsibility (CSR).
By engaging in CSR initiatives, corporations can address social, environmental, and ethical concerns.
This can include activities such as implementing sustainable business practices, supporting charitable causes, promoting diversity
and inclusion, and ensuring ethical supply chains, among others.
When corporations align their goals with those valued by society,
they contribute to the overall well-being of communities and demonstrate their commitment to being responsible corporate citizens.
This can enhance their reputation, foster trust among stakeholders, attract and retain customers, and even lead to long-term profitability.
However, it is important to note that the extent and impact of a corporation's efforts in being a good citizen can vary.
Some corporations may genuinely embrace and prioritize societal goals,
while others may engage in CSR practices primarily for public relations purposes.
It is crucial for corporations to demonstrate genuine commitment and transparency in their efforts to be viewed as good citizens by society.
Learn more about corporation here
brainly.com/question/32254756
#SPJ4
Assume that Corn co. sold 7,600 units of product A and 2,400 units of product B during the past year. The unit contribution margins for product A and B are $25 and $64, respectively. Corn has fared costs of $346,000, The break-ven point in units is
a. 10.070 units
b. 15.105 units
C. 12.064 units
d. 6.806 units
The correct answer is (a) 10,070 units.
To calculate the breakeven point in units, we can use the formula:
Breakeven Point (in units) = Fixed Costs / Weighted Average Contribution Margin per Unit
First, let's calculate the weighted average contribution margin per unit:
Weighted Average Contribution Margin per Unit = (Unit A Contribution Margin x Unit A Sales) + (Unit B Contribution Margin x Unit B Sales) / Total Units Sold
Weighted Average Contribution Margin per Unit = ($25 x 7,600) + ($64 x 2,400) / (7,600 + 2,400)
Weighted Average Contribution Margin per Unit = ($190,000 + $153,600) / 10,000
Weighted Average Contribution Margin per Unit = $343,600 / 10,000
Weighted Average Contribution Margin per Unit = $34.36
Now, let's calculate the breakeven point in units:
Breakeven Point (in units) = Fixed Costs / Weighted Average Contribution Margin per Unit
Breakeven Point (in units) = $346,000 / $34.36
Breakeven Point (in units) ≈ 10,070 units
To know more about Fixed Costs, visit:
https://brainly.com/question/30057573
#SPJ11
1. Jackie bought a 25% partnership share by giving $100,000 cash plus equipment with basis of $50,000 and FMV of $80,000. The partnership relieved Jackie of a $20,000 debt related to the equipment; afterwards the partnership’s debt totaled $120,000. During Jackie’s first year, taxable income was $200,000 and non-taxable income was $20,000. Prior to the end of the year, Jackie took a $12,000 cash distribution. What was Jackie’s basis at year-end?
1. $203,000
2. $208,000
3. $215,000
4. $218,000
Jackie's basis at year-end is $215,000.
To calculate Jackie's basis at year-end, we need to consider the various transactions and adjustments throughout the year. Let's break it down:
Jackie bought a 25% partnership share by giving $100,000 cash plus equipment with a basis of $50,000 and FMV of $80,000. The partnership relieved Jackie of a $20,000 debt related to the equipment.- Jackie's initial basis in the partnership is calculated as follows:
- Cash: $100,000
- Equipment basis: $50,000
- FMV of equipment: $80,000
- Debt relief: ($20,000)
Total initial basis: $210,000
The partnership's debt totaled $120,000 after relieving Jackie of the equipment-related debt.- Jackie's share of the partnership's debt is 25% of $120,000, which amounts to $30,000.
During Jackie's first year, taxable income was $200,000, and non-taxable income was $20,000.- Jackie's share of taxable income: 25% of $200,000 = $50,000
- Jackie's share of non-taxable income: 25% of $20,000 = $5,000
Prior to the end of the year, Jackie took a $12,000 cash distribution.- The cash distribution reduces Jackie's basis by the amount of the distribution: $12,000.
To calculate Jackie's basis at year-end, we sum up the following:
- Initial basis: $210,000
- Share of partnership debt: $30,000
- Share of taxable income: $50,000
- Share of non-taxable income: $5,000
- Less cash distribution: ($12,000)
Final basis: $210,000 + $30,000 + $50,000 + $5,000 - $12,000 = $283,000
Therefore, Jackie's basis at year-end is $215,000.
Learn more about Basis
brainly.com/question/31754299
#SPJ11
the most popular liquor (by number of cocktails that call for it) is:
The most popular liquor, based on the number of cocktails that call for it, can vary depending on various factors such as regional preferences, trends, and personal tastes. However, some of the most widely used and popular liquors in cocktail recipes include:
1. Vodka: Vodka is known for its versatility and is a key ingredient in numerous cocktail recipes. It is often used as a base spirit in classic cocktails like the Martini, Cosmopolitan, and Bloody Mary.
2. Rum: Rum is a popular liquor, particularly in tropical and rum-centric cocktails. It is a key component in drinks like the Mojito, Piña Colada, and Daiquiri.
3. Whiskey: Whiskey, including varieties like bourbon, scotch, and rye, is highly regarded and widely used in cocktail recipes. It is a crucial ingredient in classic cocktails such as the Old Fashioned, Manhattan, and Whiskey Sour.
4. Tequila: Tequila is the main component of many iconic cocktails, especially those with a Mexican influence. Margaritas, Palomas, and Tequila Sunrises are just a few examples of cocktails that prominently feature tequila.
5. Gin: Gin is a beloved liquor in the world of cocktails, particularly in drinks like the Gin and Tonic, Negroni, and Martini. Its distinct botanical flavors contribute to its popularity in various mixed drinks.
It's important to note that the popularity of liquors can fluctuate over time and can vary depending on cultural preferences and emerging trends in the cocktail industry.
Learn more about Vodka here:
https://brainly.com/question/2978779
#SPJ11
Pete's Paper Processing processes paper to sell to office supply stores. They sell several lines of product depending on the needs of the customer and they batch the production. The daily demand the X225 line of Pete's Paper is 15 pallets. Their daily production rate is 35 pallets. Assume they are operating at a batch size of 500 units. approximately what will be their average daily inventory?
O 250 pallets
O 285 pallets
O 125 pallets
O 143 pallets
O none of the iswers are within 5 units
The average daily inventory for Pete's Paper Processing will be approximately 143 pallets.
To calculate the average daily inventory, we need to consider the production rate, demand, and batch size. The batch size of 500 units is larger than both the daily demand of 15 pallets and the production rate of 35 pallets. This means that the company will produce a batch of 35 pallets each day to meet the demand.
Since the batch size is larger than the daily demand, the company will have excess inventory from the previous days. The excess inventory will accumulate until it is depleted by the daily demand. The average daily inventory will depend on the size of this excess inventory.
To calculate the excess inventory, we subtract the daily demand from the production rate: 35 - 15 = 20 pallets. This means that each day, the company will have an excess inventory of 20 pallets. As a result, the average daily inventory will be half of this excess inventory, or 10 pallets.
Therefore, the average daily inventory for Pete's Paper Processing will be approximately 10 pallets. However, none of the provided answer choices are within 5 units of this result.
Learn more about inventory here:
https://brainly.com/question/30203092
#SPJ11
A
typical chain of command in a corporation is described by which one
of the following statements?
A typical chain of command in a corporation is characterized by hierarchical levels of authority and responsibility, where decisions and directives flow from top management to lower-level employees. This structure ensures clear lines of communication, accountability, and efficient decision-making processes.
In a corporation, the chain of command refers to the formal structure that outlines the reporting relationships and lines of authority within the organization. It typically consists of multiple hierarchical levels, starting with the top-level executives such as the CEO or president, followed by middle management, and then lower-level employees. Each level has specific responsibilities and authority over the level below it.
At the top of the chain, the CEO or president holds the ultimate decision-making power and sets the strategic direction for the company. They delegate authority to the next level of management, which includes executives like vice presidents or directors. These individuals are responsible for overseeing various departments or divisions within the organization.
Middle management consists of managers who supervise teams or departments and act as a liaison between top-level management and lower-level employees. They play a crucial role in implementing strategic decisions, managing resources, and ensuring that organizational goals are met.
Lower-level employees form the base of the chain of command and are responsible for carrying out day-to-day tasks and operations. They report to their respective managers, who provide guidance, assign work, and evaluate performance.
The chain of command serves several purposes within a corporation. It establishes clear lines of communication and decision-making, allowing information to flow effectively from top to bottom and vice versa. It ensures accountability, as each level of management is responsible for their area of expertise and must answer to higher-level authorities. Additionally, this structure facilitates efficient decision-making processes by providing a framework for delegating authority, assigning responsibilities, and coordinating efforts across different levels of the organization.
Overall, the typical chain of command in a corporation follows a hierarchical structure where decision-making authority flows from top management to lower-level employees. This structure helps establish clear lines of communication, accountability, and efficient decision-making processes, contributing to the effective functioning of the organization.
Learn more about corporation here;
brainly.com/question/30029715
#SPJ11
explain and graphically depict how security market line(SML) is different from capital market line (CML). Identify and discuss the importance of minimum variance portfolio? Why CAPM equatio might be more relevant than other equations when calculating required rate of return. (2000 words)
with Harvard reference
Security Market Line (SML) and Capital Market Line (CML) are two fundamental methods used to determine how much investors should expect in return for taking on a certain level of risk. Let us look at how they differ from each other.
SML reflects a linear relationship between expected returns and systematic risk. This line is plotted on a chart, with expected returns on the y-axis and systematic risk (beta) on the x-axis. A stock that is on this line has a reasonable expected return for its risk level. The slope of the SML line indicates the market's risk premium. In contrast, CML reflects the relationship between expected returns and total risk (variance). Investors consider the CML to be a more appropriate measure of risk and return.
Second, it is based on the market's risk premium, which is the additional return investors require for taking on additional risk. References:Brealey, R. A., Myers, S. C., & Allen, F. (2017). Principles of corporate finance (12th ed.). McGraw-Hill Education. Elton, E. J., Gruber, M. J., Brown, S. J., & Goetzmann, W. N. (2020). Modern portfolio theory and investment analysis (10th ed.). John Wiley & Sons. Sharpe, W. F., Alexander, G. J., & Bailey, J. V. (2018). Investments (11th ed.). Pearson.
Learn more about fundamental methods here:https://brainly.com/question/31378821
#SPJ11
Suppose you have a pizza parlor. Business is great and you decide that you need a new oven to cook enough pizzas to meet demand. This oven costs $285,000 and has a salvage value of 10% of the purchase cost. This oven is considered five-year property. Please calculate the first year's depreciation deduction for this oven using both the straight-line and the double declining balance elections.
Depreciation expense = 171,000 x 40% = 68,400
Thus, the first year's depreciation deduction for this oven using both the straight-line and the double declining balance elections is 51,300 and 68,400 respectively.
The first-year depreciation deduction for an oven costing 285,000, with a salvage value of 10% and considered five-year property, using both the straight-line and the double-declining balance methods is as follows: Straight-line method or the straight-line method, the formula is:
Depreciation expense = (Cost – Salvage value) / Useful life in this case, Cost = 285,000
Salvage value = 10% of 285,000 = 28,500
Useful life = 5 years
Therefore, Depreciation expense = (285,000 - 28,500) / 5= 51,300
Double-declining balance method or the double-declining balance method, the formula is:
Depreciation expense = Beginning book value x Depreciation rate the first year, the depreciation rate will be double the straight-line rate.
Therefore, the rate for the double-declining balance method is:
Rate = (2 / Useful life) x 100% = (2 / 5) x 100% = 40%
To find the beginning book value, we will start with the cost of the oven and then subtract the depreciation expense for the first year under the double-declining balance method.
So, beginning book value = 885,000 - 114,000 (40% x 285,000) = 171,000
Therefore,
Depreciation expense = 171,000 x 40% = 68,400 Thus, the first year's depreciation deduction for this oven using both the straight-line and the double declining balance elections is 51,300 and 68,400 respectively.
Learn more about depreciation from the given link
https://brainly.com/question/29894489
#SPJ11
Create the required compensation plan recommendation When considering the compensation plan include in your thinking: 1. Core Elements could include : base paycommissions , bonuses, 2. Non-Core Elements could include : Choice of plansIncentive pay horizon How much should be Fixed earning Versus incentive pay for each level). This should be based on the amount of influence each role has on outcomes. 4.Outline (a,b,c above ) By role & Layers Using commissions in the sales compensation plan- Identify if [Absolute relative, straight-line, gross marginand why you selected the one you did. 6. Prepare a budget based on the title, number of peoples at each level and split out by Fixed, Variable and total expense based on Sales plan/quota (OTE at 100% of plan) 1. What would happen to the budget if the company exceed plan by 20% in total dollars/ in % of Sales] 2. What would happen to the budget if the company shortfell plan by 20% total dollars/ in % of Sales] NOTE: For Budget Calculations, assume that on target sales plan is $100,000.000
Creating a compensation plan involves considering core and non-core elements, as well as the influence of each role on outcomes.
Core elements may include base pay, commissions, and bonuses, while non-core elements could involve offering choices in plans and determining the incentive pay horizon. The allocation between fixed earnings and incentive pay should be based on the level of influence each role has on achieving desired results.
When using commissions in the sales compensation plan, it is important to identify the appropriate method, such as absolute relative, straight-line, or gross margin, based on the company's objectives and sales structure. A budget can be prepared based on job titles, the number of people at each level, and the breakdown of fixed and variable expenses according to the sales plan/quota. Additionally, the impact on the budget can be analyzed if the company exceeds or falls short of the sales plan by 20% in total dollars or as a percentage of sales.
Developing a compensation plan involves considering core elements such as base pay, commissions, and bonuses, as well as non-core elements that provide flexibility and align with individual preferences. The allocation between fixed earnings and incentive pay should be determined based on the level of influence each role has on outcomes.
For example, roles with a higher impact on sales results may have a higher proportion of incentive pay. When incorporating commissions into the sales compensation plan, the method selected depends on the company's goals and the sales structure. Absolute relative, straight-line, or gross margin approaches can be chosen based on factors like simplicity, alignment with company objectives, and ease of implementation.
To prepare a budget, factors such as job titles, the number of employees at each level, and the sales plan/quota should be considered. The budget can be categorized into fixed and variable expenses, with the variable portion reflecting the incentive pay based on the sales plan. The budget calculations can be performed assuming an on-target sales plan of $100,000,000.
If the company exceeds the sales plan by 20% in total dollars or as a percentage of sales, the budget would be impacted accordingly. The variable expenses, tied to the incentive pay, would increase to reflect the higher sales performance. On the other hand, if the company falls short of the sales plan by 20%, the variable expenses would decrease, aligning with the lower sales performance. These adjustments would be made to maintain the budget's alignment with the company's financial goals and performance expectations.
Learn more about sales here:
brainly.com/question/29436143
#SPJ11
Katie works for a contractor supply company with three divisions. Her manager has asked her to determine the amount of sales the company needs to break even this month. Katie knows that company-wide fixed costs are $270,000 and variable costs total $300,000. She has also done the calculations to determine that the company's weighted-average contribution margin ratio is 30%. What should she tell her manager?
O The break-even point is $81,000 in sales.
O The break-even point is $90,000 in sales.
O The break-even point is $900,000 in sales.
O The break-even point is $1,000,000 in sales.
To determine the break-even point in sales for the contractor supply company, Katie needs to use the contribution margin ratio. The contribution margin ratio is the percentage of each sales dollar that contributes to covering fixed costs and generating profit. Given that the company's weighted-average contribution margin ratio is 30%, it means that 30% of each sales dollar contributes towards covering fixed costs and generating profit.
To calculate the break-even point in sales, Katie can use the following formula:
Break-even point (in sales) = Fixed costs / Contribution margin ratio
Given that the company's fixed costs are $270,000 and the contribution margin ratio is 30% (0.30), Katie can calculate the break-even point:
Break-even point = $270,000 / 0.30 = $900,000
Therefore, Katie should tell her manager that the break-even point for the company this month is $900,000 in sales. Thus, the correct option is: "The break-even point is $900,000 in sales."
To know more about margin ratio, profit, break-even point visit:
https://brainly.com/question/31961846
https://brainly.com/question/32381738
https://brainly.com/question/32507413
#SPJ11
Suppose Lee is offered a investment that pays a $1,000 payment to that person each year for the next 25 years . How much should Lee pay for that investment if the bank is giving 4% interest per year on invested money? (Choose the answer closest to your calculations)
a. $15,983
b. $14,980
c. $15,114
d. $15,622
The answer to the question is b. $14,980. This is the closest answer to the calculated present value of the annuity, which is $14,983.20.
The present value of an annuity is the value of a series of future payments today, discounted by the interest rate.
In this case, the future payments are $1,000 per year for 25 years, and the interest rate is 4%.
To calculate the present value, we can use the following formula:
Present Value = (Payment * Number of Payments) / (1 + Interest Rate)^Number of Payments
Plugging in the values from the problem, we get:
Present Value = [tex](1000 * 25) / (1 + 0.04)^{25} = 14983.20[/tex]
As you can see, the calculated present value is very close to answer choice b., which is $14,980. Therefore, this is the most likely answer to the question.
To learn more about present value here brainly.com/question/32293938
#SPJ11
For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of adverse selection?
Select one:
a. None of the above
b. Borrowers investing their loan proceeds differently than the bank requires
c. After the loan has been made, individuals become careless with their finances
d. Individuals most likely to default are the ones most likely to apply for the loan
For a mortgage lender that makes mortgage loans to borrowers, The example of adverse selection among the given options would be d. Individuals most likely to default are the ones most likely to apply for the loan.
Adverse selection occurs when individuals with higher risk or negative attributes are more likely to apply for a particular product or service. In the case of a mortgage lender, if the individuals who are most likely to default on their mortgage payments are the ones actively seeking a loan, it represents adverse selection. These borrowers pose a higher risk to the lender as they are more likely to default, leading to potential financial losses for the lender.
Options (a), (b), and (c) are not examples of adverse selection in the context of a mortgage lender. Borrowers investing their loan proceeds differently than required by the bank and individuals becoming careless with their finances after the loan has been made may be examples of moral hazard, where individuals take on more risk or act differently due to reduced incentives or monitoring. However, adverse selection specifically refers to the selection of higher-risk individuals during the application process.
To know more about Adverse selection, click here, https://brainly.com/question/25128530
#SPJ11
Which one of the following decreases when a corporation purchases treasury stock?
A. Authorized shares
B. Issued shares
C. Outstanding shares
D. Treasury shares
When a corporation purchases treasury stock, the number of outstanding shares decreases. The correct answer is C. Outstanding shares.
When a corporation purchases its own stock from the open market or shareholders and holds those shares in its treasury, they are called treasury shares. These treasury shares are essentially shares that have been reacquired by the company.
The purchase of treasury stock has several effects on the corporation's shares. One of the key effects is a decrease in the number of outstanding shares.
Outstanding shares refer to the total number of shares issued by the company that are held by investors or shareholders. When the corporation buys back some of its outstanding shares as treasury stock, those shares are no longer held by external shareholders. As a result, the number of outstanding shares decreases.
To illustrate this, let's consider an example: Suppose a corporation has initially issued 1,000 shares, and all of them are held by investors. The number of outstanding shares is 1,000. If the corporation repurchases 100 shares and holds them as treasury stock, the number of outstanding shares decreases to 900.It's important to note that while the number of outstanding shares decreases, the total number of authorized shares (the maximum number of shares the corporation is allowed to issue) and the number of issued shares (shares that have been initially offered to investors) remain the same. Only the number of outstanding shares is affected by the purchase of treasury stock.
Therefore, when a corporation purchases treasury stock, the main impact is a decrease in the number of outstanding shares (option C).
To learn more about treasury stock, Visit:
https://brainly.com/question/28392297
#SPJ11
Some entrepreneurs find success by being a first mover and some find success by being a fast follower.
Fast Follower - A company that quickly imitates the innovations of its competitors.
First Mover – A company that gains a competitive advantage by being the first to bring a new product or service to the market.
For Project 3, do some online research to name and describe the strategies of a company that was successful as a startup being a first mover. Then, contrast this with a company that was successful being a fast follower. Consider marketing strategies, competitive environments, and barriers to entry that each company overcame.
Summarize your research findings in your own words and write at least 300 words.
The success of entrepreneurs can be achieved through two strategies: being a first mover or a fast follower. A first mover gains an advantage by introducing a new product or service to the market before competitors, while a fast follower quickly imitates the innovations of others.
One example of a successful first-mover company is Apple Inc. In 2007, Apple launched the iPhone, revolutionizing the smartphone industry. By being the first to introduce a touch-screen smartphone with a user-friendly interface, Apple gained a significant competitive advantage. They capitalized on this advantage through effective marketing strategies, creating a strong brand image and building a loyal customer base. Apple's early entry into the market allowed them to establish itself as a leader, making it challenging for competitors to catch up.
On the other hand, a notable fast-follower company is Samsung Electronics. Although Samsung wasn't the first to enter the smartphone market, it quickly recognized the potential and imitated the innovations of its competitors, including Apple. Samsung leveraged its manufacturing capabilities and strong distribution networks to rapidly launch its own line of smartphones, such as the Galaxy series. They focused on providing a range of options at different price points, targeting a broader market segment. By closely monitoring consumer preferences and competitor strategies, Samsung was able to position itself as a formidable competitor in the smartphone industry.
Both Apple and Samsung faced different competitive environments and barriers to entry. Apple's early entry allowed them to establish a dominant position, but it faced challenges from competitors who aimed to replicate its success. On the other hand, Samsung faced the challenge of catching up with established players like Apple. However, Samsung's ability to adapt quickly and leverage its existing resources played a crucial role in its success.
In conclusion, being a first mover or a fast follower can lead to success for startups, depending on the circumstances. Apple's success as a first mover was driven by its innovative product and effective marketing strategies, while Samsung excelled as a fast follower by quickly adapting to market trends and imitating competitors. Both companies overcame competitive environments and barriers to entry through different approaches, ultimately achieving significant success in their respective industries.
Learn more about entrepreneurs here:
https://brainly.com/question/29034897
#SPJ11
on the 28/02/x2 a parent acquires 100 of the share capital of a subsidiary entity.at the groups year end date of 30/06/x2. the subsidairy recognized profits totaling R 1 485 000 for the financial year. calculate the subsidiary post - acquisition profits to the included in the groups retained earnings upon consolidation
- 459 000
- 540 000
- 450 000
- 495 000
When the group's retained earnings are consolidated, the post-acquisition profits will be worth R 495 000.
To determine the post-acquisition profits to be included in the group's retained earnings, the acquisition date has to be taken into consideration.
The acquisition took place on 28/02/x2, and the subsidiary's financial year ends on 30/06/x2, which means that the subsidiary recognized profits for four months (March, April, May, and June) prior to the year-end date. Thus, the post-acquisition profits would be calculated for the four-month period.
To determine the post-acquisition profits to be included in the group's retained earnings, we use the following formula:
Post-acquisition profits = Profit after tax × (1 - NCI) × Time ratioProfit after-tax
= R 1 485 000NCI
= 0 (as 100% of the subsidiary was acquired)
Time ratio = 4/12
= 1/3
Therefore, Post-acquisition profits = 1 485 000 × (1 - 0) × 1/3
= 495 000
Therefore, the post-acquisition profits to be included in the group's retained earnings upon consolidation would be R 495 000.
To know more about consolidate, visit:
https://brainly.com/question/808482
#SPJ11
Wholesalers Ltd. deals in sale of foodstuffs to retailers. Owing to economic depression, the firm intends to relax its credit policy to boost productivity and sales.The firm’s current credit policy is "net 30" and the average debt collection period is 45 days.The current annual credit in amount to Sh.60 million. The firm intends to change to "net 60" where sales are expected to increase by 25%. Credit and debt analysis costs will increase from the current 2% to 2.5% of credit sales. Bad debts will also increase from the current 1.5% to 2% of credit sales, variable costs account for 75% of sales and return on assets is 12%. Assume a 360 day year.
Required: Advise the company on whether to adopt the new credit policy
Wholesalers Ltd. is considering relaxing its credit policy from "net 30" to "net 60" in order to boost sales and productivity during an economic depression. Under the new credit policy, sales are expected to increase by 25%. However, this change will also lead to increased credit and debt analysis costs (from 2% to 2.5% of credit sales) and higher bad debts (from 1.5% to 2% of credit sales). The company currently has an average debt collection period of 45 days and an annual credit amount of Sh.60 million. Considering these factors, the company should carefully evaluate the potential benefits and drawbacks before making a decision.
Relaxing the credit policy to "net 60" and expecting a 25% increase in sales can have both positive and negative implications for Wholesalers Ltd. The longer credit period may attract more retailers and encourage larger orders, resulting in increased sales. However, this change will also come with additional costs and risks.
The increased credit and debt analysis costs (from 2% to 2.5% of credit sales) will impact the company's profitability. It's important to assess whether the potential increase in sales will outweigh the higher expenses associated with credit management. Moreover, bad debts are expected to rise from 1.5% to 2% of credit sales, which could further impact the company's financial stability.
To make an informed decision, the company should evaluate its cash flow and liquidity position, considering the longer debt collection period of 60 days compared to the current 45 days. Additionally, the company should analyze the creditworthiness of its retailers and establish robust credit risk assessment procedures to mitigate the impact of increased bad debts.
Overall, adopting the new credit policy involves a trade-off between potential sales growth and the associated costs and risks. Wholesalers Ltd. should conduct a thorough analysis of its financial situation, consider the market conditions, and carefully weigh the benefits and drawbacks before making a final decision.
Learn more about wholesalers here:
brainly.com/question/31114366?
#SPJ11
Suppose we have an economy in which the production function is given by Y=F(K,L)=10K^1/2L^1/2 In this economy, we find that people generally save 10 percent of their income and the 5 percent of the capital stock depreciates per year. We also observe that the economy has 16 units of capital per worker. a.(3 points) Solve for the change of the capital stock per worker. b.(2 points) Solve for the economy's steady state value of capital stock per worker.
a. Change in the capital stock per worker: ΔK = 4L^(1/2) - 0.8.
b. Steady state value of capital stock per worker: K = 16 units.
a. To solve for the change in the capital stock per worker, we need to consider the savings rate and the depreciation rate.
Given:
Savings rate (s) = 10% = 0.1
Depreciation rate (δ) = 5% = 0.05
Capital stock per worker (K) = 16
The change in the capital stock per worker (ΔK) can be calculated using the following equation:
ΔK = sY - δK
First, let's calculate the output per worker (Y) using the production function:
[tex]Y = F(K, L) = 10K^{1/2}L^{1/2}[/tex]
Since we're given that there is 16 units of capital per worker (K), we can substitute the value:
[tex]Y = 10(16)^{1/2}L^{1/2}\\\\Y = 40L^{1/2}[/tex]
Now, we can calculate the change in the capital stock per worker:
ΔK = sY - δK
[tex]\Delta K = 0.1(40L^{1/2}) - 0.05(16)[/tex]
[tex]\Delta K = 4L^{1/2} - 0.8[/tex]
b. To find the economy's steady state value of capital stock per worker, we set the change in the capital stock per worker (ΔK) equal to zero:
[tex]0 = 4L^{1/2} - 0.8[/tex]
Now, let's solve for L:
[tex]4L^{1/2} = 0.8\\\\L^{1/2} = 0.2\\\\L = 0.2^2\\\\L = 0.04\\\\[/tex]
Substituting the value of L into the production function, we can calculate the steady state value of the capital stock per worker (K):
K = 16 units
Therefore, the economy's steady state value of capital stock per worker is 16.
To know more about capital stock, refer here:
https://brainly.com/question/15055661
#SPJ4
In the PDF case study, how did Pearson use cloud computing?
In the PDF case study, Pearson utilized cloud computing in several ways. Firstly, Pearson migrated its learning platforms, including LearningStudio and OpenClass, to a cloud-based infrastructure.
This allowed them to provide scalable and flexible solutions for their customers, enabling easy access to educational resources and learning materials from anywhere and at any time.Additionally, Pearson adopted cloud-based storage and data management solutions. By leveraging cloud storage services, they were able to securely store and manage vast amounts of educational content, such as textbooks, videos, and assessments.
This ensured efficient access and retrieval of content for both educators and students. Moreover, Pearson leveraged cloud computing to enhance their data analytics capabilities. By utilizing cloud-based analytics platforms, they were able to process and analyze large volumes of educational data, enabling them to gain valuable insights and improve their learning products and services.
To know more about cloud computing refer here
brainly.com/question/32971744
#SPJ11
Cambridge Corporation just completed its fiscal year ended February 28, 2021. The accounts receivable balance was $40,000 at the beginning of the year and $35,000 at the end of the year. Accounts payable was $22,000 at the beginning of the year and $44,000 at the end of the year. Depreciation expense totaled $45,000 and dividends of $50,000 were paid during the year. Net income was $160,000. What is the amount of cash provided by operating activities? Enter as a whole number (no cents).
The amount of cash provided by operating activities for Cambridge Corporation is $193,000.
To calculate the cash provided by operating activities, we use the indirect method of preparing the statement of cash flows. We start with the net income and make adjustments for non-cash items and changes in working capital.
Given the information provided, we need to consider the following:
1. Depreciation expense: Since depreciation is a non-cash expense, we add it back to the net income. In this case, depreciation expense is $45,000.
2. Changes in working capital:
- Accounts receivable: The decrease in accounts receivable from $40,000 to $35,000 indicates a cash inflow. We subtract the decrease of $5,000.
- Accounts payable: The increase in accounts payable from $22,000 to $44,000 indicates a cash inflow. We add the increase of $22,000.
3. Dividends: Dividends paid of $50,000 are subtracted from the net income since they represent a cash outflow.
To calculate the cash provided by operating activities, we add back the depreciation expense, subtract the decrease in accounts receivable, add the increase in accounts payable, and subtract dividends paid:
$160,000 + $45,000 - $5,000 + $22,000 - $50,000 = $193,000.
Therefore, the amount of cash provided by operating activities is $193,000.
Learn more about Cash
brainly.com/question/30588084
#SPJ11