On January 1, Hillcrest Co. acquired a 40% interest in Preston, Inc. with the excess of purchase price over book value solely attributable to equipment with a ten-year life and undervaluation by $250,000. During the year of acquisition, Preston reported net income of $500,000. What amount of Equity Income should Hillcrest report on its income statement for the year of acquisition? Select one: A. $200,000 B. $210,000 C. $190,000 D. $250,000
Answers
Answer:
C. $190,000
Explanation:
As per the given question the solution of Income reported on Income statement is provided below:-
here, we ill find first share in equity income and depreciation expenses on undervalue equipment to reach the i ncome reported on Income statement
Share in equity income = Net income × Interest
= $500,000 × 40%
= $200,000
Depreciation expenses on undervalue equipment = undervaluation ÷ Number of years × Interest
= $250,000 ÷ 10 × 40%
= $10,000
Income reported on Income statement = Share in equity income -Depreciation expenses on undervalue equipment
= $200,000 - $10,000
= $190,000
Related Questions
The famous observation that households and firms interacting in markets act as if they are guided by an “invisible hand” that leads them to desirable market outcomes comes from whose 1776 book?
Answers
The famous observation that households and firms interacting in markets act as if they are guided by an “invisible hand” that leads them to desirable market outcomes comes from Adam Smith's 1776 book.
Who was Adam Smith?This man is the person that is regarded as the father of economics. He was the one that described the invisible hands. That is all of the factors that are known as the drivers of the demand and the supply in the nation.
The invisible hands according to him are the drivers that would enable the demand and the supply of goods in an economy to get to the stage of equilibrium.
Hence the solution is Adam Smith.
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Which of the following statements is CORRECT? a. Most rapidly growing companies have positive free cash flows because cash flows from existing operations will exceed fixed assets and working capital needed to support the growth. b. In finance, we are generally more interested in cash flows than in accounting profits. Free cash flow (FCF) is calculated as after-tax operating income plus depreciation less the sum of capital expenditures and the change in net operating working capital. Free cash flow is the amount of cash that could be withdrawn without harming the firm's ability to operate and to produce future cash flows. c. The first major section of a typical statement of cash flows is "Operating Activities," and the first entry in this section is "Net Income." Then, also in the first section, we show some items that add to or subtract from cash, and the last entry is called "Net Cash Provided by Operating Activities." This number can be either positive or negative, but if it is negative, the firm is almost certain to soon go bankrupt. d. An increase in accounts receivable is added to net income in the operating activities section because if accounts receivable increase, then when they are collected cash will come into the firm. e. The next-to-last line on the income statement shows the firm's earnings, while the last line shows the dividends the company paid. Therefore, the dividends are frequently called "the bottom line."
Answers
Answer:
The correct statement:
b. In finance, we are generally more interested in cash flows than in accounting profits. Free cash flow (FCF) is calculated as after-tax operating income plus depreciation less the sum of capital expenditures and the change in net operating working capital. Free cash flow is the amount of cash that could be withdrawn without harming the firm's ability to operate and to produce future cash flows.
Explanation:
Statement 'a' is not correct because a rapidly growing company may experience negative and not positive free cash flows due to the huge investment in fixed assets and working capital to support the growth.
Statement 'c' could have been correct but for the conclusion that a negative cash flows will certainly lead a firm to go bankrupt. A firm can easily source for additional funding from other organizations, its stockholders, and financial institutions to smoothen the problems created by negative cash flows.
Statement 'd' is not correct as an increase in accounts receivable is a cash outflow instead of a cash inflow, which is indicated by a reduction in accounts receivable. Finally, "the bottom line" refers to the net income and not the dividends paid out of income. This makes statement 'e' to be incorrect as well, thus leaving only statement 'b' as the only true statement.
What is one major advantage of long-term savings strategies?
A.
They make more money available for nonessential purchases.
B.
They allow savings to grow significantly over time.
C.
They generally have the lowest available interest rates.
D.
They make it easier to pay for monthly expenses.
Answers
Answer:
It's b
Explanation:
I took a quiz
The major advantage of a long term savings plan is that: They allow savings to grow significantly over time.
What is savings?This is a term that is used to refer to the amount of money that is kept by a person over time.
The goal of savings is so that they can meet with unforeseen events. Savings help the owner to be able to take care of certain needs.
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All of the following are concepts learned in English courses except O A. how to speak the language. B. literary criticism. C. grammar. O D. public speaking. (apex)
Answers
Calculate Net Pay
Enter your gross pay, taxes, and deductions
below. Press calculate when you're ready.
Start period 02/01/2019
End period 02152019
Gross Pay
Gross Pay
$1,560.00
1,560.00
Earnings
Taxes
Deductions
$1.560.00
Federal (757) $118.09
Tax
FICA Medicare (1451 - 52262
294.37
FICA Social Security 16.2012 - 596.72
Deductions
State OK 13.650 - 55604
1,265.63
Total $2931
Calculate
Net Pay
Ok
Answers
Answer:
0
Explanation:
just did the module, there is no deduction cost
The calculated net pay is equal to 0
The formula for net pay is given as
Net pay = Gross pay - Deductions
The value for gross pay has been given to be = $1560
The value for deductions has also been given as = $1560
When we put these values into the formula:
Net pay = $1560 - $1560
= 0
Therefore we conclude that given a gross pay of 1560 and a deduction of 1560, the net pay is equal to 0
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Suppose the college administrators estimate that the beautification initiative will cost $3,600. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 170 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $18.
Answers
Answer:
the questions seems to be incomplete, so I looked for similar ones:
the total benefit of the project is estimated at $18 x 170 = $3,060
the result is probably lower than expected because:
this is an nonexcludable good, and it is nonrival in consumptionthe free rider problem occurs herecollege administrators should not carry out the project id they only base their decision on expected benefitExplanation:
what is the process or activity of optimally utilising human resources to achieve predetermined goals and objectives in the most efficient and effective way possible ?
Answers
Explanation:
Overview. Management is the act of engaging with an organization's human talent and using the physical resources at a manager's disposal to accomplish desired goals and objectives efficiently and effectively.
The process or activity of optimally utilising human resources to achieve predetermined goals and objectives in the most efficient and effective way possible is organizing.
What is the importance of human resources?
Human resources are the key elements in running the organization efficiently. They help to perform business operations as all the tasks are not operated with the help of machines or equipment. They also need instructions that are managed by the human resource of the organization.
Organizing is considered a management function that is implemented after the process of planning to arrange all the resources according to the techniques or procedures decided in planning.
An organization arranges all the resources of the business whether physical, human, or intangible, and engages them in business work by assigning their responsibilities.
Therefore, organizing is the process of utilizing human resources to achieve predetermined goals in an effective manner.
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Click this link to view O'NET's Skills section for Human Resources Managers, Note that common skills are listed
toward the top and less common skills are listed toward the bottom. According to O'NET, what are some common
skills needed by Human Resources Managers? Select four options
management of personnel resources
operation and control
social perceptiveness
speaking
O active listening
troubleshooting
Answers
Answer: B C and E
Explanation: Brainliest please
Answer:
A, C, D, and E.
Explanation:
A rational firm operating in a perfectly competitive market has its demand and total cost function given below.
TR=20Q-30Q2
TC=50+25Q-40Q2
Required
1.calculate Average fixed cost function)
2.Average variable cost function
3.Marginal cost function
4.Profit maximizing level of output
5.Maximum Profit
how do i tackel this
Answers
The average fixed cost function will be 50/Q.
How to calculate the cost?From the information given,
TR = 20Q - 30Q²
TC = 50 + 25Q - 40Q²
The average fixed cost will be:
= Fixed cost/Quantity
= 50/Q
The average variable cost will be:
= VC/Q
= (25Q - 40Q²)/Q
= 25 - 40Q
The marginal cost function will be:
TC = 50 + 25Q - 40Q²
We'll differentiate it. This will be:
MC = 25 - 80Q
The profit maximizing level of output will be:
MR = MC
20 - 60Q = 25 - 80Q
-60Q + 80Q = 25 - 20
20Q = 5
Q = 5/20 = 0.25
The profit will be:
= TR - TC
= 20Q - 30Q² - (50 + 25Q - 40Q²)
= [(20 × 0.25 - (30 × 0.25²)] - [(50 + (25 × 0.25) - (40 × 0.25²)
= [5 - 1.875] - [50 + 6.25 - 2.5]
= 3.125 - 53.75
= -50.625
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A successful data-driven market segmentation program depends on each of the following except:
a.
the rejection of tradiitional marketing research techniques
b.
the use of transactional and event data
c.
a common definition of market segments across all areas of the business
d.
developing a centralized and accessible CRM (Customer Relationship Management) database
Answers
A successful data-driven market segmentation program depends on the "use of transactional and event data", "a common definition of market segments", "and the development of a centralized CRM database" but it does not depend on "the rejection of tradiitional marketing research techniques".
The correct option to the given question is option a.
Traditional marketing research techniques, such as surveys, focus groups, and interviews, have long been used to gather insights about consumer behavior and preferences. While these techniques may have limitations, they still play a valuable role in understanding customer motivations and attitudes. Data-driven market segmentation programs can benefit from a combination of both traditional and data-driven research approaches. The use of transactional and event data is crucial for a data-driven market segmentation program. This type of data provides valuable information about customer behaviors, purchase patterns, and interactions with the business.
Having a common definition of market segments across all areas of the business ensures consistency and alignment in marketing efforts. This allows for targeted and personalized messaging that resonates with each segment. It also facilitates coordination between different departments, such as marketing, sales, and customer service, leading to a more cohesive and effective customer experience.
Finally, developing a centralized and accessible CRM database is essential for managing and analyzing customer data. It enables the integration of data from various sources, such as transactions, interactions, and demographic information, into a single platform. This centralized database provides a comprehensive view of customers, enabling more accurate segmentation and personalized marketing initiatives.
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* Distinguish between Accounts Receivable and
Account Payable.
Answers
Explanation:
Accounts receivable is money owed to a company by its debtors.
Account payable amounts due to vendors or suppliers for goods or services received that have not been yet paid for.
Answer:
Accounts receivable are the amounts owed to a company by its customers. it is an asset to the company
accounts payable are the amounts that a company owes to its suppliers.it is a liability to the company
Explanation:
please answer the following questions
Answers
Four factors that can contribute to the success of the magic florist business include Unique and Enchanting Floral Designs, Exceptional Customer Experience, Storytelling and Emotional Connections and Collaboration and Partnerships.
How the Florist Magic business can thrivethe business can thrive in the following ways:
Unique and Enchanting Floral Designs: A florist's magic business can thrive by offering distinctive and captivating floral arrangements. Incorporating elements like exotic flowers, uncommon color combinations, creative presentation styles, and enchanting themes can create a magical ambiance that sets the business apart from competitors.
Exceptional Customer Experience: Providing an exceptional customer experience is crucial for any successful business, including a florist's magic business. Going beyond the ordinary by offering personalized consultations, attentive service, and a warm and inviting atmosphere can help create a magical experience for customers.
Storytelling and Emotional Connections: Humans are naturally drawn to stories and emotional connections. A florist's magic business can leverage this by crafting narratives around their floral designs and using them to evoke emotions in customers.
Collaboration and Partnerships: Collaborating with other businesses or professionals can expand the reach and impact of a florist's magic business. Partnering with event planners, wedding venues, photographers, or even local artisans can create opportunities for cross-promotion and joint events.
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Company: Apple Inc.
Questions:
1. Provide a brief history of the company.
2. What is the company’s mission statement? What are the company’s goals?
3. What is the company’s general environment? What is the company’s task environment? What is the company’s internal environment?
4. How does the company handle corporate social responsibility?
5. Complete a SWOT Analysis for the company.
6. What is the company’s generic strategy (Cost Leadership, Differentiation, Focus)? Does the product life cycle strategy pertain to them? If so, give an example.
7. What is the company’s perspective on diversification (Single-Product, Related, or Unrelated) of their business? If applicable, complete a BCG Matrix for the company.
8. What are some examples of programmed decisions the company makes? What are some examples of non-programmed decisions the company makes?
9. What is the organization’s structure (basic form of an organization)? Do they utilize job specialization, enlargement, or enrichment? If so, how?
10. How do they handle HR issues, such as employee compensation, hiring, etc.?
PLEASE ANSWER FULLY AND PROVIDE THE SOURCES OF WHERE YOU GOT THE INFO FROM IN MLA OR APA FORMAT
Answers
Steve Jobs, Steve Wozniak, and Ronald Wayne established Apple Inc. in Cupertino, California on April 1, 1976. The corporation initially concentrated on producing personal computers, such as the Apple II and the Macintosh.
What are low entry barriers and competitiveness?Examples of low entry barriers include the necessity to have customers convert to a new brand without a lot of work or pain. Another example is the need to build a brand in a small market with little competition.
Why are entrance barriers so low?High exit barriers make markets unstable and incapable of self-regulation, which causes significant long-term fluctuations in profit margins. Because these markets are self-regulatory and stable, profit margins do not change much over time.
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A merchant plans to sell two models of home computers at costs of $250 and $400, respectively. The $250 model yields a profit of $45 and the $400 model yields a profit of $50. The merchant estimates that the total monthly demand will not exceed 250 units. Find the number of units of each model that should be stocked in order to maximize profit. Assume that the merchant does not want to invest more than $70,000 in computer inventory. (See Exercise 21 in Section 9.2.)
Answers
Answer:
That is there is maximum profit when 250 units of $250 model computer and 50 units of $400 model computer is stocked.
Explanation:
Let x represent the number of $250 model and let y represent the number of $400 model. Since the total monthly demand will not exceed 250 units, hence:
x + y < 250 (1)
Also the merchant does not want to invest more than $70,000, hence:
250x + 400y < 70000 (2)
x, y ≥ 0
Plotting the equations using geogebra online graphing tool. The solution to the problem is at (0,0), (200, 50), (250,0), (0, 175).
The profit equation is:
Profit = 45x + 50y
At (0,0); Profit = 45(0) + 50(0) = 0
At (250,0); Profit = 45(250) + 50(0) = $11250
At (0,175); Profit = 45(0) + 50(175) = 8750
At (200,50); Profit = 45(200) + 50(50) = $11500
Therefore the maximum profit is at (200, 50). That is there is maximum profit when 250 units of $250 model computer and 50 units of $400 model computer is stocked.
hyde's headphones sells deluxe headphones for $90 each. Unit variable expenses total $50. The breakeven sales in units is 2,000 and budgeted sales in units is 4,525. What is the margin of safety in dollars
Answers
Answer:
See below
Explanation:
Given the above information, margin of safety in dollars is computed as;
= (Total sales - Break even sales) × Sales price
= (4,525 - 2,000) × $90
= $227,250
Therefore, the margin of safety in dollars is $227,250
A firm's marketing mix consists of 4 major components, which are generally referred to as the four
Answers
A firm's marketing mix consists of 4 major components, which are generally referred to as the four: Ps.
What are marketing mix?Marketing mix can be defined as what a company or an organization used to distinguish its selves from other competitors so as to have a competitive advantage over others companies that sells the same or similar goods as theirs.
The four marketing mix which are the 4Ps are:
ProductPricePlacePromotionTherefore the marketing mix are the 4Ps.
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Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ACME Wayne ($ in millions) Corporation Enterprises Current assets: Cash and cash equivalents $ 407 $ 165 Current investments 6 463 Net receivables 706 86 Inventory 10,653 7,409 Other current assets 1,215 135 Total current assets $ 12,987 $ 8,258 Current liabilities: Current debt $ 7,421 $ 4,229 Accounts payable 1,687 941 Other current liabilities 1,193 2,375 Total current liabilities $ 10,301 $ 7,545 Required: 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) 1-b. Which company has the better ratio
Answers
Answer:
1-a. ACME corporation is 1.26
Wayne corporation is 1.09
1-b. ACME corporation
Explanation:
ACME ($ in millions) Wayne ($ in millions)
Total current assets $ 12,987 $ 8,258
Total current liabilities $ 10,301 $ 7,545
1-a) Formula for calculating current ratio: Current ratio = Current assets ÷ Current liabilities
ACME corporation, current ratio = $ 12,987 million ÷ $ 10,301 million = 1.26
Wayne corporation, Current ratio = $ 8,258 million ÷ $7,545 million = 1.09
1-b. The higher the current ratio, the better the liquidity position. ACME corporation has the better ratio.
1-The current ratio of. ACME corporation is 1.26 and Wayne corporation is 1.09.
1-b. ACME corporation
Calculation of the current ratio:ACME ($ in millions) Wayne ($ in millions)
Total current assets $ 12,987 $ 8,258
Total current liabilities $ 10,301 $ 7,545
1-a) The Formula for calculating current ratio is
Current ratio = Current assets ÷ Current liabilities
For ACME corporation
= $ 12,987 million ÷ $ 10,301 million
= 1.26
And,
Wayne corporation
= $ 8,258 million ÷ $7,545 million
= 1.09
1-b. The higher the current ratio, the better should be the liquidity position. ACME Corporation has the better ratio.
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ways to increase job satisfaction for managers
Answers
Answer:
Rephrase please
Explanation:
The Case: The hairdressing industry in Pakistan is flourishing day by day. There are certainly lots of hairdressers and each of the hairdressers has a slightly different type of skill. Some salons only cut, some only provide color services, some only do natural hair, some do all types, etc. Also, they have different premises situated in a different location where they provide the services. The prices offered by the hairdresser depend on the services offered by them and its uniqueness. If the particular hairdresser is known for providing the best services in the particular market then he can increase the prices of his services as he knows that consumers can pay slightly more amount of money for his superior services. There is relatively a low barrier for entry and exit for setting up a new hairdresser shop. Requirement: Read the above scenario and explain in which market structure ‘the hairdressing industry’ falls and how?
Answers
Answer:
The Hairdressing Industry in Pakistan
The market structure of "the hairdressing industry" falls under Monopolistic Competition. The features of this market structure include: many hairdresser shops, low barriers for entry and exit for setting up a new hairdresser shop, the hairdressing services are not perfect substitutes, and the pricing decisions of any one shop do not impact others.
Explanation:
In a monopolistic competition, each firm is differentiated from others by distinct goods and services. This situation is enhanced in a services industry, where different skills are employed to further differentiate each firm's services from the others. While the products and services may look similar, one cannot actually substitute one for the other. Therefore, each firm can charge different prices for their distinct products and services without being influenced by the other firms, unless through a cartel arrangement.
Use the following information about the current year's operations of a company to calculate cash provided by operations.Net income $ 100,000 Decrease in Accounts Payable 5,000 Increase in Accounts Receivable 4,000 Increase in Merchandise Inventory 8,000 Decrease in Salaries Payable 2,000 Depreciation Expense 6,000 Gain on Sale of Machinery 2,000
Answers
Answer:
Cash from operations:
Net income $100,000
Depreciation Expense 6,000
Decrease in Accounts Payable (5,000)
Increase in Accounts Receivable (4,000)
Increase in Merchandise Inventory (8,000)
Decrease in Salaries Payable (2,000)
Cash from operations $87,000
Explanation:
a) Data and Calculations:
Net income $ 100,000
Decrease in Accounts Payable 5,000
Increase in Accounts Receivable 4,000
Increase in Merchandise Inventory 8,000
Decrease in Salaries Payable 2,000
Depreciation Expense 6,000
Not an operating activity:
Gain on Sale of Machinery 2,000
b) The gain on the sale of machinery is not an operating activity or a cash flow item. Cash inflow is recorded when there is a sale of the machinery and as an investing activity. Increase in current assets (except cash) are uses of fund together with decreases in current liabilities.
Question 6 (10 points)
A company purchases $10,000 worth of equipment on account. What effe
this transaction have on the equity account?
Increases
Decreases
No Effect
Answers
Answer:
Equity is not changed by credit or purchases on account.
The correct is C. It has no effect
Explanation:
I am positive. Have a great day!
3
"It is necessary that competition exist if the whole economy
is to remain dynamic. When competition ceases to exist,
there will be no pressure to pass the benefits to the
consumer, nor will there be any reason to introduce new and
risky techniques."
The Federal Government has attempted to follow this advice
primarily by?
Answers
Answer:
The federal government supports competition by monitoring proper business practices and preventing monopolies that destroy competiton. This can be seen in US history when the government broke the monopoly from the standard oil comany. They dominated the market to a point where competition was impossible. As a result, the US government broke Standard Oild into smaller companies.
Explanation:
This a good answer i think.
The present value of the tax cost associated with the current sale of inventory for 50,000 and subsequent of Owl stock for 70,000
Answers
According to the question the present value of the tax cost would be $162,500.
What is tax cost?Tax cost is the amount of money paid to the government in the form of taxes. It is the amount of money that individuals, businesses, and other organizations must pay to the government based on their income, profits, or other activities. Tax costs can include income taxes, property taxes, sales taxes, payroll taxes, and other forms of taxes. Depending on the country or jurisdiction, different types of taxes may be included in the tax cost calculation.
The present value of the tax cost associated with the current sale of inventory for $50,000 and subsequent sale of Owl stock for $700,000 depends on the applicable tax rate in your jurisdiction.
Assuming a tax rate of 25%, the present value of the tax cost would be $162,500
($50,000 x 25% + $700,000 x 25%).
= $162,500.
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China has adopted a three-tier board structure, with a board of directors, a supervisory board, and a subordinate board. China has adopted a three-tier board structure, with a board of directors, a supervisory board, and a subordinate board. false
Answers
It is false that China has adopted a three tier structure of board of the company.
The Two Tier Board structure refers to the corporate structure that consists of two separate Boards of directors that govern such entity.
Currently, the Chinese companies have a two-tier board structure which consists of the supervisory board and a board of director.Hence, it is false that China has adopted a three tier structure of board of the company.
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1.
Marketing can be viewed as consisting of two general tasks; (1) finding out what
consumers need and then (2) developing strategies to satisfy those needs.
Propose the process of how marketers go about determining and satisfying
customer needs for lounge-wear during the pandemic?
[40 marks, 400 words)
Answers
Finding out what consumers need;
To determine your consumers' demands, collect input from them at each stage of your process. You may discover consumer requirements in a variety of methods, such as through focus groups, monitoring to your consumers or social networking sites, or doing keyword research.Effects of pandemic on marketing;
Epidemic has led in adjustments to promoting, marketing, commercial, and media spending, requiring businesses and kinds to rethink existing and future advertising and marketing efforts in order to maintain a steady stream of economic reward.
Pandemic has rendered people's lives and livelihoods helpless all over the world. It has also prompted a reassessment of what client care entails for vulnerable individuals and hence the potential customers that serve them. Examining customer journeys and satisfaction indicators to determine what consumers would want to have given rise to an extreme need to cope with what they have.
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Westco Company issued 14-year bonds a year ago at a coupon rate of 8 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 6.3 percent, what is the current bond price in dollars?
Answers
The current bond price in dollars is approximately $1,137.49.
To calculate the current bond price, we can use the present value of the bond's cash flows. Since the bond has a 14-year maturity and makes semiannual payments, it will have a total of 28 (14 years multiplied by 2) coupon payments.
The coupon rate is 8 percent, which means the bond pays $80 (8 percent of $1,000) in interest annually, or $40 per semiannual period. The bond also returns the face value of $1,000 at maturity.
To calculate the present value of the bond's cash flows, we discount each cash flow to its present value using the yield to maturity (YTM) of 6.3 percent. The YTM represents the market's required rate of return for the bond.
Using a financial calculator or spreadsheet software, we can discount each cash flow and sum them up to find the current bond price. The formula to calculate the present value of a bond's cash flows is:
PV = C * (1 - (1 + r)^(-n)) / r + F / (1 + r)^n
Where PV is the present value, C is the coupon payment, r is the YTM per period, n is the total number of periods, and F is the face value.
Plugging in the values for the given bond, we have:
C = $40
r = 6.3% / 2 = 0.0315 (semiannual YTM)
n = 28
F = $1,000
Using the formula and calculating the present value, we find that the current bond price is approximately $1,137.49.
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(Economics)
In an essay of at least two well-developed paragraphs, explain the global benefits of international trade and multinational corporations.
Answers
International trade refers to the exchange of goods and services across national borders. It plays a significant role in promoting economic growth and providing several global benefits.
One of the primary advantages of international trade is that it allows countries to specialize in producing goods and services in which they have a comparative advantage. This means that countries can focus on producing goods that they can produce more efficiently and at a lower cost compared to other countries. As a result, resources are allocated more efficiently, leading to increased productivity and higher standards of living.Furthermore, international trade enables countries to access a wider variety of goods and services that may not be available domestically. This increases consumer choices and provides opportunities for individuals to enjoy a higher quality of life. For example, consumers in a landlocked country can still enjoy fresh seafood by importing it from coastal countries. Similarly, individuals in colder climates can purchase tropical fruits from countries where they are grown.Multinational corporations (MNCs) also contribute to the global benefits of international trade. These are companies that operate in multiple countries, with business activities ranging from production to distribution. MNCs play a crucial role in facilitating international trade by establishing global supply chains, investing in foreign markets, and creating jobs. They bring capital, technology, and managerial expertise to host countries, which can lead to economic development and improved living standards.Moreover, MNCs often engage in research and development (R&D) activities, driving innovation and technological advancements. This can have far-reaching benefits for both the host country and the global economy. For instance, a multinational pharmaceutical company conducting R&D in a developing country may discover new drugs or medical treatments that can benefit people worldwide.In conclusion, international trade and multinational corporations provide numerous global benefits. They promote specialization, resource allocation efficiency, and access to a wider variety of goods and services. Additionally, MNCs contribute to economic development, job creation, innovation, and technological advancements. Overall, international trade and MNCs play a crucial role in fostering economic growth and improving the well-being of individuals and nations around the world.
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Coast-to-Coast Shipping Company's general manager reports quarterly to the
company president on the firm's operating performance. The company uses a
budget based on detailed expectations for the forthcoming quarter. The general
manager has just received the condensed quarterly performance report shown
below.
Budget Actual Variance
Net revenue $8,000,000 $7,600,000 $400,000 U
Fuel $160,000 $157,000 $3,000 F
Repairs and maintenance 80,000 78,000 2,000 F
Supplies and miscellaneous 800,000 788,000 12,000 F
Variable payroll 5,360,000 5,200,000 160,000 F
Total variable costs* $6,400,000 $6,223,000 $177,000 F
Supervision $160,000 $164,000 $4,000 U
Rent 160,000 160,000 ___
Depreciation 480,000 480,000 ___
Other fixed costs 160,000 158,000 2,000 F
Total fixed costs $960,000 $962,000 $2,000 F
Total costs charged against Revenue $7,360,000 $7,185,000 $175,000 F
Operating income $640,000 $415,000 $225,000 U
U = Unfavorable F = Favorable
*For purposes of this analysis, assume that all these costs are totally variable with respect to sales
revenue. In practice, many are mixed and have to be subdivided into variable and fixed components
before a meaningful analysis can be made. Also assume that the prices and mix of services sold remain
unchanged.
Although the general manager was upset about not obtaining enough revenue, she was happy that her
cost of performance was favorable; otherwise her net operating income would be even worse.
The president was totally unhappy and remarked: "I can see some merit in comparing actual
performance with budgeted performance because we can see whether actual revenue coincided with our
best guess for budget purposes. But I can't see how this performance reports helps me evaluate cost
control performance."
Required:
1. Prepare a columnar flexible budget for Coast-to-Coast Shipping at revenue levels of $7,000,000;
$8,000,000; and $9,000,000. Assume that the prices and mix of products sold are equal to the budgeted
prices and mix.
2. Express the flexible budget for costs in formula form.
3. Prepare a condensed table showing the master (static) budget variance, the sales volume variance,
and the flexible budget variance
Answers
1. Columnar Flexible Budget:
$7,000,000 $8,000,000 $9,000,000
Net Revenue $7,000,000 $8,000,000 $9,000,000
Fuel $140,000 $160,000 $180,000
Repairs and Maintenance $70,000 $80,000 $90,000
Supplies and Miscellaneous $700,000 $800,000 $900,000
Variable Payroll $4,690,000 $5,360,000 $6,030,000
Total Variable Costs* $5,600,000 $6,400,000 $7,200,000
Supervision $140,000 $160,000 $180,000
Rent $160,000 $160,000 $160,000
Depreciation $480,000 $480,000 $480,000
Other Fixed Costs $160,000 $160,000 $160,000
Total Fixed Costs $940,000 $960,000 $960,000
Total Costs $6,540,000 $7,360,000 $8,160,000
Operating Income $460,000 $640,000 $840,000
2. Formula for Flexible Budget Costs:
Total Variable Costs = (Variable Cost per Unit * Net Revenue) + Total Fixed Costs
3. Condensed Table:
Variance Master (Static) Budget Sales Volume Variance Flexible Budget Variance
Net Revenue $400,000 UF $0 $200,000 UF
Total Costs $175,000 F $0 $50,000 F
Operating Income $225,000 U $0 $150,000 U
The Master (Static) Budget Variance is the difference between the budgeted net revenue and the actual net revenue. In this case, it is an unfavorable variance of $400,000.
The Sales Volume Variance is the difference between the flexible budget net revenue and the budgeted net revenue. Since there is no change in the sales volume, this variance is zero.
The Flexible Budget Variance is the difference between the flexible budget total costs and the actual total costs. In this case, it is a favorable variance of $50,000. This indicates that the company was able to control costs better than anticipated.
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Computer-assisted telephone interviewing has replaced online survey research as the most popular method of
collecting data.
a. True
b. False
Answers
The statement "Computer-assisted telephone interviewing has replaced online survey research as the most popular method of collecting data." is false. Option B
What is Computer-assisted telephone interviewing?Generally, The Computer-Assisted Personal Interviews (CAPI) technique is a face-to-face data-collecting approach in which the interviewer utilizes a tablet, mobile phone, or computer to record responses made during the interview. This technique is also known as a computer-assisted telephone interview (CATI).
Computer-assisted telephone interviewing (CATI) is a method of conducting telephone surveys in which the interviewer is guided through the questions by a script that is generated by a software program.
In conclusion, The claim that computer-assisted telephone interviewing has surpassed online survey research as the most common approach of data collection is untrue.
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in addition to the financial statements, which of the following must be included in the annual reports?
Answers
In addition to financial statements (e.g. balance sheet, income statement, cash flow statement), annual reports usually include the following information:
Management Discussion and Analysis (MD&A), Auditor's Report, Corporate Governance Report, Risk Factor Disclosure, Shareholder Information, Glossary of Financial Terms, Executive Compensation
Give a brief description of the contents of annual reports.
Management's Discussion and Analysis (MD&A): A section that provides a narrative on the company's performance, financial results, and outlook.Corporate Governance Information: Details about the company's governance structure and how the board of directors is held accountable to stakeholders.Corporate Social Responsibility Report: Information about the company's commitment to environmental, social and governance (ESG) initiatives.Risk Factors: A section that highlights the risks and uncertainties the company faces, which could impact its financial performance.Executive Compensation: Details on the compensation packages of the company's executives.Financial Highlights: A summary of the company's key financial metrics and performance. Auditor's Report: An independent opinion from the company's auditors on the financial statements.Shareholder Information: Information on the company's shareholder structure, dividend history, and voting procedures.Hence, the answer is, Management Discussion and Analysis (MD&A), Auditor's Report, Corporate Governance Report, Risk Factor Disclosure, Shareholder Information, Glossary of Financial Terms, Executive Compensation
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