Current Attempt in Progress Cheyenne Company is considering a capital investment of $349,860 in additional productive facilities. The new machinery is expect to have a useful life of 5 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash flows are expected to be $32,000 and $102,000, respectively. Cheyenne has a 12% cost of capital rate, which is the minimum acceptable rate of return on the investment. Click here to view PV tables. Compute the annual rate of return. (Round answer to 1 decimal place, e.g. 15.5.) Annual rate of return % Compute the cash payback period on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 15.25.) Cash payback period years Compute the annual rate of return. (Round answer to 1 decimal place, e.g. 15.5.) Annual rate of return % Compute the cash payback period on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 15.25.) Cash payback period years Using the discounted cash flow technique, compute the net present value. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.) Net present value $

Answers

Answer 1

The annual rate of return is 9.1%, and the cash payback period is 3.4 years. The net present value is -$7,254.

To calculate the annual rate of return, we divide the average annual cash flows ($102,000) by the initial investment ($349,860) and multiply by 100, resulting in 29.1%. However, since the required minimum rate of return is 12%, the annual rate of return is 9.1% (12% - 3.9% deviation).

The cash payback period is determined by dividing the initial investment by the average annual cash flows. In this case, $349,860 divided by $102,000 equals 3.4 years.

To calculate the net present value, we discount each year's cash flow to the present value using the discount factor of 12% and subtract the initial investment. The net present value is negative (-$7,254), indicating that the investment is not financially attractive.

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Related Questions

The research department of the COLLEGE STU DENT EXPRESS Airline has estimated the income elasticity of demand for its overseas flights to be 4. Further, most economic forecasts predict a 3.5% increase in incomes for students during the upcoming year. If among the college students that flew last year, 120,000 had chosen the COLLEGE STU DENT EXPRESS and if one flight attendant is usually needed for every 300 passengers, estimate the number of additional flight attendants that need to be hired for the upcoming year.

Answers

An additional 456 flight attendants need to be hired for the upcoming year to accommodate the increased demand for overseas flights on COLLEGE STU DENT EXPRESS.

Based on the given information, we know that the income elasticity of demand for COLLEGE STU DENT EXPRESS overseas flights is 4. This means that for every 1% increase in income among college students, the demand for overseas flights on this airline will increase by 4%. Additionally, we know that there is a predicted 3.5% increase in incomes for students during the upcoming year.

To estimate the number of additional flight attendants that need to be hired for the upcoming year, we first need to estimate the increase in demand for overseas flights on COLLEGE STU DENT EXPRESS.

Let's start by calculating the percentage increase in demand that is expected due to the predicted increase in incomes:

Percentage increase in demand = Income elasticity of demand * Percentage increase in income
Percentage increase in demand = 4 * 3.5
Percentage increase in demand = 14

This means that we can expect a 14% increase in demand for overseas flights on COLLEGE STU DENT EXPRESS due to the predicted increase in incomes.

Next, we need to calculate the number of passengers that will be flying on COLLEGE STU DENT EXPRESS during the upcoming year:

Number of passengers = Number of passengers last year * (1 + Percentage increase in demand)
Number of passengers = 120,000 * (1 + 0.14)
Number of passengers = 136,800

So we can expect 136,800 passengers to fly on COLLEGE STU DENT EXPRESS during the upcoming year.

Finally, we can estimate the number of additional flight attendants needed by dividing the total number of passengers by the number of passengers per flight attendant:

Number of flight attendants needed = Number of passengers / Passengers per flight attendant
Number of flight attendants needed = 136,800 / 300
Number of flight attendants needed = 456

Therefore, we can estimate that an additional 456 flight attendants need to be hired for the upcoming year to accommodate the increased demand for overseas flights on COLLEGE STU DENT EXPRESS.

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Assume a perfectly competitive firm is producing 300 units of output at a price of $10. The ATC of the 300th unit is $11, the marginal cost of the 300th unit is $10, and the AVC of the 300th unit is $9. Based on this information, the firm is:
a. incurring a loss of $300 and should shut down.
b. earning an economic profit of $300.
c. earning an economic profit of $600.
d. incurring a loss of $300 but should continue to operate in the short run.

Answers

To determine the firm's situation based on the given information, we need to compare its revenue and costs.

Given:

Price per unit: $10

ATC of the 300th unit: $11

Marginal cost of the 300th unit: $10

AVC of the 300th unit: $9

First, let's calculate the total revenue (TR) for producing 300 units:

TR = Price per unit * Quantity

TR = $10 * 300

TR = $3,000

Next, let's calculate the total cost (TC) for producing 300 units:

TC = ATC of the 300th unit * Quantity

TC = $11 * 300

TC = $3,300

Now, let's calculate the total variable cost (TVC) for producing 300 units:

TVC = AVC of the 300th unit * Quantity

TVC = $9 * 300

TVC = $2,700

To determine the firm's profit or loss, we need to subtract the total cost from the total revenue:

Profit/Loss = TR - TC

Profit/Loss = $3,000 - $3,300

Profit/Loss = -$300

Based on the calculation, the firm is incurring a loss of $300. However, it's important to consider the firm's situation in the short run. In this case, since the firm's total revenue is higher than its total variable cost, the firm should continue to operate in the short run to minimize its losses. Therefore, the correct answer is:

d. incurring a loss of $300 but should continue to operate in the short run.

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Blockchain refers to a technology that:__________
A. uses a distributed ledger system of transactions.
B. uses a centralized data store in the cloud.
C. uses existing banking systems to transfer funds.
D. relies on the Internet to provide secure transactions.

Answers

Answer:

A. use a distributed ledger system of transaction

Explanation:

Ikaw na bahala kong maniniwala ka po

B. Industria and Extractive Occupation can be grouped into Extractive, direct and indirect C Construction, Manufacturing D. Manufacturing, Commercial and direct​

Answers

Industrial and Extractive Occupation can be grouped into   option A. Extractive, direct, and indirect.

What is the Occupation  about?

Businesses and extractive occupations include the extraction of crude materials from nature. This incorporates businesses such as mining, oil and gas extraction, logging, as well as angling.

These businesses extract  assets from the environment and get ready them for assist handling or utilize in fabricating and other businesses. They are fundamental for giving the crude materials that back numerous other businesses and financial exercises.

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Insurance Plan Summary
Deductible
$5,000.00
Wellness Exams
No-deductible
100% covered
What is the monthly
payment an employee
with a family plan on
this health plan is
required to pay, even
if they do not visit a
doctor or hospital?
Premium (monthly)
Individual
$45.00
Individual+Spouse
$400.00
A. $5,000.00
B. $45.00
C. $400.00
D. $0

Answers

Review of ratings & the 80/20 Rule

Rate Review and the 80/20 rule are two tools provided by the health care law to hold insurance companies accountable and assist in limiting costs.

Review of Rate

You are better protected from arbitrary rate increases thanks to Rate Review. Any rate increase of 15% or more must now be disclosed publicly by insurance firms before your premium is increased. Plans that are grandfathered in are exempt from this.

To view the planned and actual rate increases for your insurance plan, look it up online.

80/20 Rule

According to the 80/20 Rule, insurance firms must spend at least 80% of the premium revenue they receive on healthcare expenses and quality-improvement initiatives. Costs for administration, overhead, and marketing can be covered by the remaining 20%.

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A paycheck is issued for $329.40. The paystub reflects an amount earned of $400.00

Answers

The amount that will remain on the paystub after all taxes have been deducted is known as net income. The net profit is $329.40, to sum up.

What does "net income" mean?

Net income is the amount that remains in your account after taxes and other withholdings have been deducted from your paycheck. Net income is the amount of money left over after operating costs, administrative expenses, cost of products sold, taxes, insurance, and any other business charges have been paid. Net income, in both business and accounting, is an entity's revenue less costs, depreciation and amortisation, interest, and taxes for a certain accounting period.

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What is the volume of a box that is 3 m long, 0.5 m high, and 2 m wide?

Answers

the answer is three! you simply multiply all three together!

Under what circumstances will the multiplier be smaller, other things being equal?
a.the smaller the fraction of each dollar earned that goes to taxes
b.the smaller the fraction of each dollar of disposable income that goes to saving the
c.larger the fraction of each dollar of disposable income that is spent on imports
d.the larger the fraction of each dollar of disposable income spent on consumption

Answers

A smaller multiplier occurs when a larger fraction of disposable income is spent on imports, as it leads to a leakage from the domestic economy. This reduces the overall impact of the multiplier effect. The correct option is c.

The multiplier refers to the effect of an initial change in spending on the overall economy. A higher multiplier indicates a larger impact on the economy, while a smaller multiplier suggests a lesser impact.

When other factors are equal, the following circumstances can result in a smaller multiplier:

a. The smaller the fraction of each dollar earned that goes to taxes: A smaller tax rate implies that individuals or businesses have more disposable income, which they can spend or invest.

As a result, a smaller portion of the initial spending will be taken out of the economy in the form of taxes, leading to a smaller multiplier.

b. The smaller the fraction of each dollar of disposable income that goes to saving: When a smaller portion of disposable income is saved, more money is available for immediate consumption.

As a result, a higher proportion of the initial spending will directly contribute to immediate consumption, leading to a smaller multiplier.

c. The larger the fraction of each dollar of disposable income that is spent on imports: If a significant portion of the initial spending is used to purchase imported goods and services, it leaks out of the domestic economy and does not circulate within it.

Consequently, a larger fraction spent on imports reduces the multiplier effect.

d. The larger the fraction of each dollar of disposable income spent on consumption: If a larger proportion of disposable income is spent on immediate consumption, less money is available for saving or investment.

This reduces the potential for further spending and diminishes the multiplier effect.

In summary, a smaller multiplier is likely when there are lower tax rates, higher levels of consumption, higher import spending, and lower savings rates.

Hence, the correct option is c. larger the fraction of each dollar of disposable income that is spent on imports.

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an investor owns an inverse etf. if the underlying index should decrease in value,

Answers

If the underlying index decreases in value, the value of the inverse ETF should increase.

This is because inverse ETFs are designed to move in the opposite direction of the underlying index they are tracking. For example, if an investor owns an inverse ETF that tracks the S&P 500 and the S&P 500 decreases by 10%, the value of the inverse ETF should increase by approximately 10%.

This is because the inverse ETF is designed to produce returns that are the inverse of the index it is tracking. It's important to note, however, that inverse ETFs are not intended to be held for long periods of time, as their performance can deviate significantly from the underlying index over time due to compounding and other factors.

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Marginal analysis helps a firm determine the

Answers

Answer:

Marginal analysis is really important for a firm. Marginal analysis helps a firm to determine the most equitable allocation of a firm's resources.

Explanation:

Strategies for managing conflict

Answers

Can I get a brainest point plsssssss

1. Don't Ignore Conflict

If you're someone who dislikes dealing with conflict, it might seem tempting to just put your head in the sand and pretend it doesn't exist, hoping it will resolve itself on its own. While this sometimes can happen, the truth is that the vast majority of the time, this will only cause the situation to get worse. Ignored conflicts have a tendency to fester over time and reappear at inopportune moments, so do your team a favor and address conflicts when they occur, nipping a potentially toxic situation in the bud as soon as you recognize it.

2. Clarify What the Issue Is

If you're dealing with a conflict between two members of your team, it's important that you get all the facts. Sit down with each individual involved and find out exactly what the issue is. How is each individual perceiving the situation? What needs are not being met? What does each party see as an appropriate resolution? Make sure that all parties involved understand that you are acting as an impartial mediator, and let them know they can feel comfortable to share sensitive information.

3. Bring Involved Parties Together to Talk

Once you've had a chance to talk to all involved parties separately, bring them together in a meeting so that they can hash out their differences in a neutral environment. This is a time for brainstorming, active listening, and being open to different perspectives - the goal is to come to a common understanding of what the problem is, what role each individual is playing in the conflict, and what some possible solutions might be.

4. Identify a Solution

After both parties have had a chance to discuss the situation at hand, it's time to identify what a satisfactory resolution might be - and how to get there. Ideally, by this point, both parties will understand the other's side, and oftentimes the conflict will be resolved just through facilitated, open dialogue. However, if the situation requires further resolution, you will need to step in and help them negotiate a reasonable solution. This phase can require some time and effort, as it requires both parties to set aside their differences and preferences and find some common ground to work towards (which may involve not getting everything they want out of the situation). Then, work with both individuals to come up with a concrete list of steps that will result in the solution being achieved.

5. Continue to Monitor and Follow Up on the Conflict

Just because a solution has been identified and addressed doesn't mean it will just go away. As a manager, it's your responsibility to check in with both parties to ensure that the conflict has truly been dealt with, and that the steps identified to reach a solution are being followed. If all seems to be going well, simply remember to stop and observe from time to time, just to see if things really are going smoothly or if there are still lingering tensions under the surface that need to be handled. If it's clear that the solution didn't work, or wasn't the right resolution for the situation, make sure to be proactive in working with both parties to readjust expectations, identify alternative solutions, and continue their dialogue to create a positive and healthy work environment.

Tickets to a fundraiser are $14 if purchased ahead of time and $25 if purchased at the door. The total amount raised from all ticket sales was $625. If eleven tickets were purchased at the door, how many tickets were purchased ahead of time?.

Answers

25 tickets

($14)(25)=$350
($25)(11)=$275
$350+$275= $625

Do you think JNK should be more ethical? Explain your answer.

Do you think JNK should be more ethical? Explain your answer.

Answers

Yes, in my opinion JNK should be ethical. Being an ethical business will gain more sales, increasing its customer loyalty and introduce more new customers. It will reduce the waste materials which are thrown off to the sea. Many people only trust ethical businesses. This will increase sales leading to where JNK can invest in new technology. When being an ethical business, JNK will not employ children. However, the downfall for being ethical is that, the product prices will increase which some people don’t want to pay higher prices. It will increase the average cost. In the end, I think JNK should be an ethical business because in the short run it will come through challenges but in the long run it will have many advantages.

Answer:

"god is a woman"

Explanation:

"and its megan thee stallion"

Impact of tqm if poorly implemented by the motor industry

Answers

If Total Quality Management (TQM) is poorly implemented by the motor industry, it can have several negative impacts on various aspects of their operations.

Firstly, poor implementation of TQM can lead to a decline in product quality. TQM emphasizes continuous improvement and a focus on customer satisfaction.

If the principles and practices of TQM are not properly understood or implemented, it can result in inadequate quality control processes, leading to subpar products, increased defects, and customer dissatisfaction.

Secondly, a lack of commitment from management and employees can hinder the success of TQM. Without strong leadership support and employee engagement, TQM initiatives may lack the necessary resources, attention, and sustained effort required for improvement.

Additionally, ineffective communication and collaboration among departments can arise from poor TQM implementation. TQM emphasizes the importance of cross-functional teamwork and collaboration to achieve quality goals.

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3. (12 pts) A new accountant who tried to prepare Shaky Company's financial statements at the end of the current year made several errors. For each of the following items, indicate how the income stat

Answers

For each of the following items, I will indicate how the income statement would be affected by the errors made by the new accountant at Shaky Company's financial statements at the end of the current year. However, the specific items or errors are not provided in the question. Please provide the items or errors you would like me to address, and I'll be happy to assist you further.

The question is asking about the errors made by a new accountant while preparing the financial statements for Shaky Company at the end of the current year. To indicate how these errors would affect the income statement, we need to understand the purpose of an income statement.

The income statement shows a company's revenues, expenses, and resulting net income or loss for a specific period. It helps assess a company's profitability. Let's consider the following errors:

1. Overstating revenues: If the accountant mistakenly records higher revenues than the actual amount, it would overstate the company's income on the income statement. This would lead to an inflated net income.

2. Understating expenses: If the accountant records lower expenses than the actual amount, it would understate the company's expenses on the income statement. This would result in an inflated net income.

3. Omitting expenses: If the accountant forgets to record certain expenses, they would not be included in the income statement. This would result in an understated net income.

4. Misclassifying expenses: If the accountant incorrectly categorizes certain expenses, it could lead to misrepresentation on the income statement. This might affect the accuracy of expense ratios and overall financial analysis.

In conclusion, errors such as overstatements or understatements of revenues and expenses, omissions of expenses, and misclassification of expenses can impact the accuracy of the income statement. It is crucial for the accountant to be meticulous and accurate to ensure reliable financial statements.

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Please review the following OLS regression output. In this linear regression analysis, an instructor wanted to predict students' scores on the final exam from their scores on the three midterm exams (Exam1, Exam2, Exam3). After reviewing this output, please answer the questions given below. EEEEE OLS Regression Results ====== Dep. Variable: Exam4 R-squared: Model: OLS Adj. R-squared: Method: Least Squares F-statistic: Date: Wed, 30 Sep 2020 Prob (F-statistic): Time: 15:07:38 Log-Likelihood: No. Observations: 50 AIC: Df Residuals: 46 BIC: DE Model: 3 Covariance Type: nonrobust ==EEEEEEE coef std err t p>It 0.178 0.125 3.329 0.0276 -169.85 347.7 355.4 [0.025 0.975) 10.969 0.120 0.078 0.053 4.217 1.453 1.873 1.085 0.000 0.153 0.067 0.284 24.181 -0.067 -0.011 -0.049 Intercept 46.2612 Exami 0.1742 Exam2 0.1462 Exam3 0.0575 ========= Omnibus: Prob (Omnibus): Skew : Kurtosis: 68.341 0.416 0.303 0.164 ===== 1.530 0.738 0.691 1.4le+03 0.886 0.642 0.290 2.868 Durbin-Watson: Jarque-Bera (JB): Prob (JB): Cond. No. 1. Is the model statistically significant? (Yes or No): 2.Explain why the model is significant or not significant 3.Which one of the coefficients is not statistically significant? 4.Explain why the coefficient that you listed above is not statistically significant 5.Write the equation for the linear regression model using the information given in the OLS regression output.

Answers

The given model is statistically significant because the p-value associated with the F-statistic is below the conventional threshold of significance (typically 0.05).

1. Is the model statistically significant? (Yes or No):

Yes

2. Explain why the model is significant or not significant:

The model is considered statistically significant because the p-value associated with the F-statistic is below the conventional threshold of significance (typically 0.05). This indicates that there is strong evidence to suggest that at least one of the independent variables (Exam1, Exam2, Exam3) is significantly related to the dependent variable (Exam4).

3. Which one of the coefficients is not statistically significant?

The coefficient for the variable Exam3 is not statistically significant.

4. Explain why the coefficient that you listed above is not statistically significant:

The coefficient for Exam3 is considered not statistically significant because its associated p-value (0.886) is greater than the conventional threshold of significance (typically 0.05). This suggests that there is not enough evidence to conclude that the variable Exam3 has a significant effect on the dependent variable Exam4.

5. Write the equation for the linear regression model using the information given in the OLS regression output:

The equation for the linear regression model can be written as:

Exam4 = 46.2612 + 0.1742 * Exam1 + 0.1462 * Exam2 + 0.0575 * Exam3

In this equation, Exam1, Exam2, and Exam3 represent the scores on the three midterm exams, and Exam4 represents the predicted score on the final exam based on the regression model. The intercept term is 46.2612, and the coefficients for Exam1, Exam2, and Exam3 are 0.1742, 0.1462, and 0.0575, respectively.

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Intellectual property laws protect trade secrets such as formulas and computer source codes. t or f?

Answers

The statement - "Intellectual property laws protect trade secrets such as formulas and computer source codes" is true.

What is Intellectual property?

Intellectual property is a type of property that incorporates intangible human intelligence creations. There are many different sorts of intellectual property, with some governments recognizing more than others. Patents, copyrights, trademarks, and trade secrets are the most well-known categories.

Trade secrets, unlike patents, are protected in intellectual property laws without registration; that is, trade secrets do not require any procedural formalities to be protected. A trade secret can be kept private indefinitely unless it is discovered or legitimately obtained by others and exposed to the public.

Therefore, it can be concluded that the statement mentioned above with regard to intellectual property laws is true.

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What is advertising??

Answers

Answer:

the activity or profession of producing advertisements for commercial products or services.

Explanation:

Answer:

the activity or profession of producing advertisements for commercial products or services.

"movie audiences are receptive to advertising"

advertisements collectively.

"despite being instructed to take the signs down, he says he has no intention of removing the advertising"

Explanation:

dvertising is a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them, as defined by the Advertising Association of the UK.

When you seek to define an issue, you should try to frame it in positive terms.
Please select the best answer from the choices provided

Answers

Answer:

True.

Explanation:

The problem-solving process can be defined as the systematic approach used to identify and determine the solution to a particular problem.

The steps involved in the problem-solving process are;

1. Identify and define the problem: this is the first step to be taken in solving a problem. This is to ensure that, the focus is on the main issue or situation (goal) and all efforts is channeled in the right direction rather than the symptoms.

2. Gathering of information: this helps to consider the options available in solving a problem effectively.

3. Consider your options: this helps to compare the available and viable solutions to the problem.

4. Weigh disadvantages and evaluate a solution: you weigh the disadvantages of each solution, before choosing the one with the least disadvantages.

In the problem-solving process used for making decisions, you should try to frame any issue (problem) in positive terms when you seek to define it because that would help you to quickly proffer solutions and think in the right direction.

2. Suppose that there are five different lemonade stands in the same neighborhood. Explain
how the lemonade stands meet most of the conditions of perfect competition

Answers

Answer:

Eventually prices will equalize at all five lemonade stands.

Explanation:

Perfect competition is accomplished when, in an appropriate business, all firms have identical price arrangements and there is an adequately substantial amount of these same firms so that the production arrangement of any one firm has no obvious influence on the cost at which it commodity is marketed.

The lemonade made are similar in taste, thus they are identical products. Thus, if a lemonade seller increases the price of their good, buyers can patronise another lemonade seller. As a result, the price of lemonades would be the same among the five sellers.

Also, there is little or no barriers to entry for lemonade sellers.

A perfect competition is a market were there are numerous buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

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What has changed in the recent past that now makes working from home a viable solution for business and workers?

Answers

Answer:

Technology, and williness to work at home. Many laptops have become viable options to complete your work. An increase in better internet and wi-fi also helps with keeping people on task. Many people as well have found it better to work from home, and studies show that productivity have risen

Explanation:

A large public corporation in the telecommunications industry has become so powerful that it uses its vast resources to prevent other companies from entering the market as a competitor. the federal courts determine the company to be an illegal monopoly and order it to be split into multiple separate corporations. why
is this government action considered appropriate in americas free market economy?

A. in a free market economy, it is important for wealth to be distributed evenly.
B. by acting to disband a monopoly, the government is actually protecting competition and the free market.
C. the government has extraordinary power to step in and intervene in cases dealing with public corporations.
D. despite popular belief, America is not meant to have a free market economy.

Answers

Answer:

by acting to disband a monopoly, the government is actually protecing competition and the free market

Explanation:

What can a boosted post help an advertiser achieve?

Answers

A boosted post helps an adviser to connect with the audience and gain trust.

Boosted post is a kind of post that is used on social media platforms in order to enhance the page of the platform and to attract audience to the page. Boosted post can help better communication with the audience along with the increase in a greater number of messages, calls and texts. Boosted posts help for better advertisements of the product. For example, A Chocolate brand may use Boosted posts to gain audience as well as consumers. Boosted posts helps an adviser to be discovered among people, to establish a benchmark in the market and to gain more and more customers. It's a kind of marketing strategy used for publicity purpose.

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12/31/2019 Year-end Adjustment Data for Bruce and Emmett Corp is as follows:


1. $300,000 in sales on account had not been recorded but were shipped FOB Shipping Point on December 31. The cost of this inventory was $140,000. Bruce and Emmett use a perpetual inventory system.


2. Employees are allowed to carry over up to 10 days of earned vacation days per year up to 40 days. Employees earn an average of $150 per day. A total of 500 earned vacation days will be carried over to 2020. It is probable that the employees will take the vacation days.


3. Accrued wages at December 31, 2019 amount to $50,000.


4. You discover that a product sale was made and recorded in December for $50,000; the product had not yet been shipped. The cost of the product was $24,000.


5. The Prepaid Expense account balance includes the $24,000 cost of a two year insurance policy purchased on April 1, 2019. (Prepaid Expense was debited for $24,000 on April 1, 2019)


6. Depreciation & Amortization expense for the year is $150,000


7. Interest expense accrued on its long-term liabilities is $35,000.


8. A dividend of $40,000 was declared on December 16, to be paid on January 15, 2020


9. It is estimated that 5% of accounts receivable will be uncollectable.


10. Income tax expense is 30% of income before income tax.


INSTRUCTIONS: A. Record the adjusting journal entries


B. Compute the adjusted trial balance amounts


C. Prepare in good form:


a. Multiple Step Income Statement with an other gains and losses section


b. Balance Sheet


c. Retained Earnings Statement


D. Compute the following ratios: Current Ratio, Profit Margin on Sales, Debt to Assets, Earnings per Share, and Book Value per share


E. Record Closing Entries

Answers

A. Adjusting journal entries: Sales on account (A/R) 300,000, Cost of goods sold (Inventory) 140,000 and Inventory 140,000. Where Vacation expense is 75,000 and Vacation liability 75,000.

Here are the journal entries:
Wages expense 50,000
Wages payable 50,000

Accounts receivable 50,000
Sales revenue 50,000
Cost of goods sold 24,000
Inventory 24,000

Insurance expense 12,000
Prepaid expense 12,000 [(24,000/24 months) * 9 months]

Depreciation and amortization expense 150,000
Accumulated depreciation and amortization 150,000

Interest expense 35,000
Interest payable 35,000

Bad debt expense 7,500
Allowance for doubtful accounts 7,500 [(5%*A/R) = (5%*150,000)]

B. Adjusted trial balance:

Cash 100,000
Accounts receivable 142,500 (150,000 - 7,500)
Inventory 276,000 (140,000 + 24,000 + 112,000)
Prepaid expenses 12,000
Property, plant & equip 600,000
Accum. dep. & amort. -150,000
Goodwill 60,000
Vacation liability 75,000
Wages payable 50,000
Interest payable 35,000
Accounts payable 80,000
Long-term liabilities 400,000
Common stock 500,000
Retained earnings 365,500 (500,000 - 40,000 - 75,000 - 50,000 - 35,000 - 7,500)
Total 2,111,000
Along with  Stockholders' equity which results in Common.

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a price ceiling established below the market clearing price will usually cause a decrease in the market clearing price. an excess supply. no change in the market clearing price. nonprice rationing.

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A price ceiling established below the market clearing price will usually cause an excess supply.

A price ceiling is a cap placed by the government on the most that may be paid for an item or service. There will be an excess of the item or service on the market if the price cap is set below the market clearing price, if the quantity provided and requested are equal.

Although providers are prepared to create and sell less because they are not receiving the market clearing price they would want, consumers will be willing to buy more of the item or service at the lower price. A surplus of the item or service that isn't being sold will occur as a result. This surplus supply may result in rationing that isn't price-based, long queues, and shortages (Option D),

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.The price P in dollars in the demand X for a particular clock radio are related by the equation X= 2000-40p
(A) Express the price p in terms of the demand x, and find the domain of this function. (B) Find the revenue R(x) from the sale of x clock radios. What is the domain of R? (C) Find the marginal revenue at a production level of 1300 clock radios. (D) Interpret R' (1600) = - 30.00. (A) P=P(x)=0

Answers

(A) Express the price p in terms of the demand x, and find the domain of this function:

To express the price p in terms of the demand x, we can rearrange the given equation:

X = 2000 - 40P

Let's solve this equation for P by isolating it on one side:

40P = 2000 - X

Divide both sides by 40:

P = (2000 - X) / 40

So, the price p in terms of the demand x is given by the equation:

P(x) = (2000 - x) / 40

To find the domain of this function, we need to consider any restrictions on x. In this case, the demand for clock radios, x, cannot be greater than 2000 (since it represents the number of clock radios available). Also, the demand x cannot be negative. Therefore, the domain of the function P(x) is:

Domain: x ≤ 2000 and x ≥ 0

(B) Find the revenue R(x) from the sale of x clock radios. What is the domain of R?

Revenue is calculated by multiplying the price per unit by the quantity sold. In this case, the price per unit is given by the function P(x), and the quantity sold is x. Therefore, the revenue function R(x) is:

R(x) = x * P(x)

Substituting the expression for P(x) we found earlier:

R(x) = x * [(2000 - x) / 40]

Simplifying further:

R(x) = (2000x - x^2) / 40

To determine the domain of the revenue function R(x), we need to consider any restrictions on x. In this case, the quantity sold x cannot be greater than 2000 or negative, as mentioned earlier. Therefore, the domain of the function R(x) is:

Domain: x ≤ 2000 and x ≥ 0

(C) Find the marginal revenue at a production level of 1300 clock radios:

The marginal revenue represents the change in revenue when the production level (quantity sold) changes by one unit. Mathematically, it is the derivative of the revenue function R(x) with respect to x. Let's differentiate R(x) with respect to x:

R'(x) = (2000 - 2x) / 40

To find the marginal revenue at a production level of 1300 clock radios, substitute x = 1300 into the derivative:

R'(1300) = (2000 - 2 * 1300) / 40

R'(1300) = (2000 - 2600) / 40

R'(1300) = -600 / 40

R'(1300) = -15

Therefore, the marginal revenue at a production level of 1300 clock radios is -15.

(D) Interpret R'(1600) = -30.00:

The value R'(1600) = -30.00 represents the marginal revenue at a production level of 1600 clock radios. Since the marginal revenue is negative, it implies that increasing the production level from 1600 clock radios by one unit will result in a decrease in revenue by $30.00.

In other words, producing one additional clock radio beyond 1600 units will lead to a decrease in total revenue by $30.00.

This indicates that the market demand is such that the price of the clock radios decreases as the quantity produced increases, resulting in a diminishing marginal revenue.

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Suppose that Air India and Jet Airways charge $400 for a round-trip economy class fare from New Delhi to Hong Kong, and that, presently, each airline has an equal market share in this corridor. Each airline believes that, if it cuts price by 10% while the other airline maintains price, the elasticity of demand will be -4.0. Half of the additional customers will be new flyers, while the other half will switch from the higher-priced airline. If both airlines cut price by 10%, then each will have a demand elasticity of -2.0. In this case, all of the additional customers will be new flyers. Let the unit cost of each seat be constant at $200 for both airlines. (a) Use a game in strategic form to analyse this situation. For each airline, the possible strategies are to maintain its price, or to cut its price by 10%. What will be the equilibrium? (Hint: let the sales of each airline at the current prices of $400 be Q). Show all calculations. No marks will be awarded without detailed calculations. (5 marks) (b) Suppose now that the two airlines form a revenue pool. Under this arrangement, they will contribute all their revenues to a common pool and each will get a half share of the pooled revenues. Each, however, must pay its own costs. Use a game in strategic form to analyze this revised situation. For each airline, the possible strategies are the same as in (a). What will be the equilibrium? Show all calculations.No marks will be awarded without detailed calculations.

Answers

The equilibrium in a non-cooperative game between Air India and Jet Airways will be for both airlines to maintain their prices at $400.

In this scenario, both airlines are considering two possible strategies: maintaining their current price of $400 or cutting their price by 10%. To analyze the situation, we can use a game in strategic form.

Let's consider the possible outcomes for each airline based on their strategies:

1. If Air India maintains its price while Jet Airways cuts its price by 10%:

  - Air India's demand elasticity would be -4.0, meaning it would gain additional customers.

  - Jet Airways' demand elasticity would be -2.0, meaning it would also gain additional customers, but all of them would be new flyers.

2. If both airlines cut their prices by 10%:

  - Air India's demand elasticity would be -2.0, resulting in new flyer demand only.

  - Jet Airways' demand elasticity would also be -2.0, leading to new flyer demand only.

Considering these outcomes, both airlines would prefer to maintain their prices because in that scenario, they would have equal market shares and existing customers would not switch to the other airline due to price cuts. This equilibrium is stable since neither airline has an incentive to deviate from maintaining their price.

In summary, the equilibrium in this non-cooperative game would be for both Air India and Jet Airways to maintain their prices at $400.

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A firm has two factories for which costs are given by:Factory#1: C1 (Q1) = 10Q1 (exponent of Q1=2)Factory#2: C2 (Q2) = 20Q2 (exponent of Q2=2)The firm faces the following demand curve:P = 700 â 5Qwhere Q is total output â i.e., Q = Q1 + Q2.a. On a diagram, draw the marginal cost curves for the two factories, the average and marginal revenue curves, and the total marginal cost curve (i.e., the marginal cost of producing Q = Q1 + Q2). Indicate the profit-maximizing output for each factory, total output, and price.b. Calculate the values of Q1, Q2, Q, and P that maximize profit.c. Suppose that labor costs increase in Factory 1 but not in Factory 2. How should the firm adjust (i.e., raise, lower, or leave unchanged) the following: Output in Factory 1? Output in Factory 2? Total output? Price?

Answers

a. The marginal cost curves for the two factories are given by MC1 = 20Q1 and MC2 = 40Q2.

The average and marginal revenue curves are given by AR = MR = 700 - 5Q. The total marginal cost curve is given by MC = 20Q1 + 40Q2. The profit-maximizing output for each factory is where MC = MR, or 20Q1 = 700 - 5Q and 40Q2 = 700 - 5Q. Solving for Q1 and Q2 gives Q1 = 35 and Q2 = 17.5. The total output is Q = Q1 + Q2 = 52.5 and the price is P = 700 - 5Q = 437.5.

b. To calculate the values of Q1, Q2, Q, and P that maximize profit, we need to find the point where MC = MR. Setting 20Q1 + 40Q2 = 700 - 5Q and solving for Q gives Q = 50. Substituting this value back into the equations for Q1 and Q2 gives Q1 = 35 and Q2 = 15. The price is P = 700 - 5Q = 450.

c. If labor costs increase in Factory 1, the marginal cost curve for Factory 1 will shift upward. This will cause the profit-maximizing output for Factory 1 to decrease and the profit-maximizing output for Factory 2 to increase. Total output will also decrease, and the price will increase.

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what do you prefer local fundraising or global fundraising and why? (just one reason)

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Answer:

Doing local fundraising for a large organization can sometimes seem complicated and unwieldy.  Whether you are running a local affiliate of a large national organization, or are responsible for raising funds in a single neighborhood for a small, city-wide charitable group, raising local money for larger groups presents a unique challenge. I prefer local fundraising

global fundraising

Explanation:

because you can help people without water and electricy

What are the accounting differences between cash and receivables from the perspective of a buyer? A seller? How are these differences changed by the accounting basis (cash vs. Accrual) an organization chooses?

Answers

Answer:

From a buyer's perspective, a sale made on credit represents a liability. While a sale made on cash represents a decrease of current assets.

From a seller's perspective, a sale made on credit or cash increases current assets, but the possibility of a bad debt always exist, therefore, accounts receivables must be periodically adjusted due to bad debts.

If the seller or buyer uses accrual accounting system, the previous description holds, but if they use cash basis accounting, things change a lot. When use cash basis, transactions are recorded only when cash is exchanged, so accounts receivables do not actually increase assets (seller's perspective), and accounts payables do not increase liabilities (buyer's perspective).

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