Explanation:
A speech with the best pointers gets succeeded rather than the lengthier speech which does not have any highlights.
When we are presenting a speech, content is the first things that comes right in front of us, then comes the body posture, gestures, tone of voice, etc.
It is important to google for a best pointers, which is rarely known, few facts, few positive aspects, the challenges so that the speech will attract mass listeners.
The content gets successful only with the help of gestures and tone of voice. So we need major ideas and good tone of voice along with good gestures.
In early 2008, the price of oil on the world market increased, hitting a peak of about $140 per barrel in July 2008. In the second half of 2008, the price of oil declined, ending the year at just over $40 per barrel. Suppose that the global market for oil can be described by an upwardsloping supply curve and a downward-sloping demand curve. For each of the following scenarios, illustrate graphically how the exogenous event contributed to a rise or a decline in the price of oil in 2008: a) A booming economy in China raised the global demand for oil to record levels in 2008. b) As a result of the financial crisis of 2008, the United States and other developed economies plunged into a severe recession in the latter half of 2008. c) Reduced sectarian violence in Iraq in 2008 enabled Iraq to increase its oil production capacity
Answer:
a) A booming economy in China raised the global demand for oil to record levels in 2008
The booming Chinese economy shifted the oil demand curve to the right, because now more oil was demanded in the world economy at any given price. Because supply did not increase as much as demand, the price of oil rose.
b) As a result of the financial crisis of 2008, the United States and other developed economies plunged into a severe recession in the latter half of 2008.
The declining advanced economies of late 2008 shifted the oil demand curve to the left, because now less oil was demanded in the world economy at any given price. Because the world's supply of oil did not shrink as fast as demand, the price of oil fell.
c) Reduced sectarian violence in Iraq in 2008 enabled Iraq to increase its oil production capacity.
The more stable Iraq economy shifted the oil supply curve to the right, because now more oil was put in the market at any given price. Depending on the time of the year, this increased supply contributed either to dampening the price increase of early 2008, or to accelerating the price decline of late 2008.
An electronics company makes communications devices for military contracts. The company just completed two contracts. The navy contract was for 2,500 devices and took 26 workers three weeks (40 hours per week) to complete. The army contract was for 5,400 devices that were produced by 34 workers in four weeks (40 hours per week).
a. Calculate the productivity for navy and army contracts in units produced per labor hour. (Round your answers to 2 decimal places.)
b. On which contract were the workers more productive?
Final answer:
The productivity for the Navy contract is 0.80 devices/hour, whereas for the Army contract, it is 0.99 devices/hour. The Army contract had higher worker productivity.
Explanation:
To calculate the productivity for each contract, we will divide the total number of units produced by the total labor hours worked on each contract. For both contracts, workers work 40 hours per week.
Navy contract productivity:The total labor hours = 26 workers × 3 weeks × 40 hours/week = 3120 hours
The productivity = 2500 devices / 3120 hours = 0.80 devices/hour (rounded to two decimal places)
Army contract productivity:The total labor hours = 34 workers × 4 weeks × 40 hours/week = 5440 hours
The productivity = 5400 devices / 5440 hours = 0.99 devices/hour (rounded to two decimal places)
Comparing the productivity of the two contracts, the workers were more productive on the Army contract, with a higher number of devices produced per labor hour.
A sales representative at Universal Container needs assistance from specific product managers when selling certain deals. Product managers do not have access to opportunities, but need to gain access when they are assisting with a specific deal. How can a system administrator accomplish this?
A. Notify the product manager using opportunity update reminders.
B. Enable opportunity teams and allow users to add the product manager.
C. Use similar opportunities to show opportunities related to the product manager. D. Enable account teams and allow users to add the product manager.
Answer:
The correct answer is letter "B": Enable opportunity teams and allow users to add the product manager.
Explanation:
The situation portraits a gap between salespeople and product managers. Salespeople need assistance when selling certain products but product managers do not have access to those opportunities. In that case, a system administrator must link the two parties by enabling opportunity teams. Then, salespeople directly can add a product manager to the opportunity team according to the type of assistance needed.
In the year 2005, a company made $5.8 million in profit. For each consecutive year after that, their profit increased by 7%. How much would the company's profit be in the year 2009, to the nearest tenth of a million dollars
The profit in 2009 is 6.708 million dollars.
Explanation:To find the company's profit in the year 2009, we need to calculate the consecutive increase in profit from 2005 to 2009.
First, calculate the increase in profit for each year using the formula:
Increase = Profit * Increase percentage
For 2006, the increase is 5.8 million * 7% = 0.406 million
For 2007, the increase is (5.8 million + 0.406 million) * 7% = 0.433 million
For 2008, the increase is (5.8 million + 0.406 million + 0.433 million) * 7% = 0.469 million
Finally, to find the profit in 2009, add up the increases: 5.8 million + 0.406 million + 0.433 million + 0.469 million = 6.708 million (rounded to the nearest tenth of a million).
Ordinary life insurance involves policies marketed on an individual basis, on which policyholders receive a lump sum payment at maturity of the policy.
True/False
Answer:
The statement is: False.
Explanation:
Life Insurance is a financial contract that protects an individual's dependents in the case of his or her death. In life, the policy holder makes payments on a regular basis -typically monthly- to be covered and selects who the beneficiaries will be if he or she passes away. The beneficiaries receive a lump sum of payment only in front of that event.
In the lesson you learned that a market economy is where the prices of services and goods are determined through a free system. Based on what you learned in the lesson, describe two advantages and two disadvantages of this type of economy.
Answer:
ADVANTAGES OF MARKET ECONOMY
1, Consumer sovereignty
2. Innovation
DISDVANTAGES OF MARKET ECONOMY
1. Unhealthy rivalry
2. Market failure
Explanation:
Market economy also called free market economy or capitalist economy is a type of economic system that encourages free ownership of productive resources. in this type of economy, the ownership of productive resources is in the hands of the individuals, and the price system allocates resources
ADVANTAGES OF MARKET ECONOMY
1, Consumer sovereignty - In a market economy, the concept of consumer sovereignty is recognized, the consumer dictates the market offerings through the price system, what the consumers want will have high demand and that would be an incentive to the producer to supply more and vice versa.
2. Innovation - The drive to get a larger share in a keenly competed market, with competition within and without, will make businesses to spend on research and take innovative steps if they want to remain in relevant in the business landscape.
DISDVANTAGES OF MARKET ECONOMY
1. Unhealthy rivalry - The cut-throat competition in the market economy will lead to unhealthy rivalry among competitors, businesses would be out to take unfair advantage over the other with its attendant consequences. This may lead to supply of substandard products.
2. Market failure - The market forces as efficient as they are, sometimes failed to allocate resources optimally. The market failure was one of the courses of the greet depression.
How does taking a systems view of a project apply to project management?
Answer:
System view is having knowledge about each and every step involve in the process. To have a complete command and understanding of performing every step of the required task is known as System view.
For Example: lets take a Project of building a house manager needs to know each and every signal step involved in the complete project from map making to concrete structure, from paint to interior, from wooden work to sanitary etc. If the manager will have a complete command over each of the above defined activity then only the project will be completed effectively and efficiently.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces corn will produce
Answer:
Will specializes in producing corns.
Explanation:
The law of comparative advantage dictates that a country should only produce that good, in which its opportunity cost is lowest among its trade partner countries. In this way, that country will specialize in the way in producing that thing. In the long run, due to the specialization, the productivity level of that country will increase which might be inform of more skilled labor or the development of new technologies that increase the production output. The increased productivity due to specialization leads to the increased output for that nation.
In case of corn, the country might specialize in producing corn, and might develop more skilled labor and more value added products from corn to increase the economic output of the country.
Pluto Inc. borrows $3000 from Second National Bank by signing a promissory note. Recording this transaction will include which of the following?a. Debit notes receivableb. Debit cashc. Credit revenued. Credit note payable
Answer:
b. Debit cash and d. Credit note payable
Explanation:
On borrowing from the bank, the entries to be posted by Pluto Inc. will be;
Debit Bank/Cash account $3000
Credit Credit note payable $3000
The credit represents the liability which is the obligation to payback the loan at a future date.
The right options are; b. Debit cash and d. Credit note payable.
The recording of Pluto Inc.'s borrowing transaction involves debiting cash and crediting note payable.
When Pluto Inc. borrows $3000 from Second National Bank by signing a promissory note, the transaction will involve a debit to cash as the company is receiving money. Additionally, a credit to notes payable is recorded to indicate the company's liability to repay the loan. Thus, the correct answer is debit cash and credit note payable.
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Identify which of the following statement(s) is (are) correct as to why accounting is important. (check all that apply.) managers, creditors, investors and owners need reliable financial information in order to make decisions. Accounting information summarizes or conveys information about an organization’s business activities. Accounting information identifies, records and communicates information about a business
Answer:
The correct statements are A, B and C
Explanation:
Accounting plays a important role while running a business as it helps the company in keeping a track of expenditures as well as income, it ensures the statutory compliance.
Provide the owners, managers, investors and creditors reliable information so that could take the decisions.
It summarizes the information and help in conveying the information related to the firm activities.
It records as well as communicate the information regarding the business.
It is usually easier to change marketing channels than to change prices or promotion.True or false?
Answer:
True
Explanation:
True because changing marketing channels would have little affect over than changing prices or promotion strategy. This why it is preferred to change marketing channels than to change prices or promotion.
Answer:
TRUE
Explanation:
Changing marketing channels is typically easier than changing costs or advertising.
A marketing mechanism is the individuals, organizations that practice that is required to transfer ownership of products from the cost of quality to the point of consummation. It is the manner in which goods meet the end-user, the consumer; and is also regarded as a means of distribution.price and promotion are highly rigid things, that's why it is easier to change the marketing channel.
What impact are macroenvironmental factors likely to have on the level of student enrollments at colleges and universities over the next decade?
Answer:
Macro environmental factors likely to affect student enrollments at colleges and universities over the next decade includes sociocultural, economic, political and legal factors.
Explanation:
Macro environmental factors are very much external to student enrollments at colleges and universities over the next decade; however, they form an integral factor.
Sociocultural factors, such as the societal perception, and cultural systems, forms a vital role on the level of student enrollments at colleges and universities over the next decade?.
Answer and explanation:
The Macroenvironment is the conditions existing in an economy as a whole, rather than in a single sector or region. The macroenvironment is linked to the business cycle and includes trends in Gross Domestic Product (GDP), Inflation, Employment, Spending, and Monetary and Fiscal Policy.
All the factors mentioned above influence people's decisions and enrolling at college is a subject matter to those considerations. The employment rate, job positions available, wages and compensations are typical factors that help applicants to universities decide what career to choose and in the next decade that is not unlikely to change.
Niagara Resort Club sold plant assets at a $ 15 comma 000 loss. Where on the statement of cash flows should Niagara Resort Club report the sale of plant assets? How much should the business report for the sale?
Answer:
The sale of the plant assets reported in the Income statement is at profit or loss whereas the asset sold reported in the Statement of Cash flows will show a positive balance of $15,000 from investing activities.
Explanation:
The sale of Non current assets or fixed assets are always the amount that we received after the sale of the fixed asset. So the amount represented in the Statement of Cash Flows must be Total amount which is $15,000.
Why do financial managers refer to the opportunity cost of capital? How would you find the opportunity cost of capital for a safe investment?
Answer:
To find the opportunity cost of capital for a safe investment, managers and investors look at current interest rates on safe debt securities.
Explanation:
Opportunity cost of capital refers to the return that could have been earned by investing in another investment opportunity with comparable risk.
Answer:
Opportunity cost of the capital is usually (if we consider the tax implications on the returns demanded by the lenders) the return required by the investors
Explanation:
So assume that I am appraising a project and I need an investment of round about 1 million dollars. If I fund this investment from loan which costs me 10% and also increases the financial cost then its opportunity cost is 10% interest and additional risk increased. However I also have an offer from one of my friends who is willing to invest in this project and is offering me $0.5 million equity investment and demands 20% return on this investment alongwith lower financial risk. So the opportunity cost of this equity investment is 20% cost of equity along with lower financial risk.
We can find opportunity cost of capital for a safe investment from the yield of government gilts or treasury bond's yield on investment.
Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy. Year 1 Year 2 Amounts billed to clients for services rendered $ 184,000 $ 234,000 Cash collected from clients 167,000 197,000 Cash disbursements Salaries paid to employees for services rendered during the year 97,000 107,000 Utilities 33,500 47,000 Purchase of insurance policy 62,100 0 In addition, you learn that the firm incurred utility costs of $38,500 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.Prepare an income statement for each year according to the accrual accounting model.
Answer:
Answer in Attachment
Explanation:
Given the following information, calculate the funds from operation (FFO). Net income: $1,200,000, Gain/losses from infrequent and unusual events: $0, Amortization of tenant improvements: $120,000, Amortization of leasing expenses: $75,000, Depreciation (real property): $2,675,000.
A. $195,000
B. $1,395,000
C. $2,870,000
D. $4,070,000
Answer:
Option (D) is correct.
Explanation:
Funds from operation:
= Net income - Gain/losses from infrequent and unusual events + Amortization of tenant improvements + Amortization of leasing expenses + Depreciation (real property)
= $1,200,000 - $0 + $120,000 + $75,000 + $2,675,000
= $4,070,000
Therefore, the funds from operation is $4,070,000.
Southeast Jewelers Inc. sells only on credit. Its days sales outstanding is 73 days, and its average accounts receivable balance is $500,000. What are its sales for the year? Assume a 365-day year.
Answer:
$2,500,000
Explanation:
The computation of the sales amount is shown below:
= Average account receivable balance × total number of days in a year ÷ days sales outstanding
= $500,000 × 365 days ÷ 73 days
= $2,500,000
We simply apply the unitary method for this question that is shown above in the calculation part i.e multiplying the total number of days in a year by the average account receivable balance and then divided it by the days sales outstanding
Final answer:
To calculate Southeast Jewelers Inc's annual sales, use the formula for DSO, rearrange it to solve for sales, and substitute the given values to find that yearly sales are approximately $2.47 million.
Explanation:
The question asks us to calculate the total sales for the year for Southeast Jewelers Inc., knowing that the days sales outstanding is 73 days, and the average accounts receivable balance is $500,000.
To find the annual sales, we use the formula that relates days sales outstanding (DSO) with average accounts receivable (AR) and total sales (S): DSO = (Average AR / Sales) × 365. Rearranging this formula to solve for sales gives us S = (Average AR × 365) / DSO. Substituting in the values provided: S = ($500,000 × 365) / 73.
Performing the calculation, S equals $2,465,753.42 (rounded to two decimal places). Therefore, the total sales for Southeast Jewelers Inc. for the year are approximately $2.47 million.
Concord Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $20 per year. During November 2020, Concord sells 16,500 subscriptions beginning with the December issue. Concord prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue.a.Prepare the entry in November for the receipt of the subscriptionsb.Prepare the adjusting entry at December 31, 2014, to record sales revenue recognized in December 2014.c.Prepare the adjusting entry at March 31, 2015, to record sales revenue recognized in the first quarter of 2015.
Answer:
Explanation:
The journal entries are shown below:
a) Cash A/c Dr $330,000 (16,500 subscriptions × $20)
To Unearned subscription Revenue A/c $330,000
(Being the receipt of the subscriptions is recorded)
b) Unearned subscription Revenue A/c Dr $27,500
To Subscription Revenue A/c $27,500
(Being the sales revenue recognized in December 2014 is recorded)
The calculation is shown below:
= $330,000 × 1 month ÷ 12 month
= $27,500
c) Unearned subscription Revenue A/c Dr $82,500
To Subscription Revenue A/c $82,500
(Being the sales revenue recognized in March 31, 2015 is recorded)
The calculation is shown below:
= $330,000 × 3 month ÷ 12 month
= $82,500
Bower Company purchased Lark Corporation’s net assets on January 3, 20X2, for $632,000 cash. In addition, Bower incurred $9,000 of direct costs in consummating the combination. At the time of acquisition, Lark reported the following historical cost and current market data:
Balance Sheet Item Book Value Fair Value
Assets
Cash & Receivables $ 57,000 $ 57,000
Inventory 114,000 165,000
Buildings & Equipment (net) 207,000 307,000
Patent — 203,000
Total Assets $ 378,000 $ 732,000
Liabilities & Equities
Accounts Payable $ 20,000 $ 20,000
Common Stock 98,000
Additional Paid-In Capital 66,000
Retained Earnings 194,000
Total Liabilities & Equities $ 378,000
Required:
Prepare the journal entry or entries with which Bower recorded its acquisition of Lark’s net assets. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Record the payment of merger costs.
Record the acquisition of Lark Corporation net asets.
Answer:
Preparation of Journal Entries
Date Particulars Dr($) Cr($)
January 3, 20x2 Cash & Receivables 57,000
Inventory 165,000
Buildings & Equipment 307,000
Patent 203,000
Account Payable 20,000
Purchase Consideration 632,000
Gain on Purchase Bargain 80,000
(Being purchase of Lark
Corporation`s net assets)
Recording of merger costs.
(Debit) Cash $9,000
(Credit) Merger Expenses $9,000
Recording of acquisition of Lark Corporation`s net assets
(Debit) Investment in Lark`s net asset $712,000
(Credit) Cash $632,000
(Credit) Gain on Purchase Bargain $80,000
Explanation:
When acquiring another business, net asset (Total Assets - Total Liabilities) is valued at fair value (sometimes called market value, not book value. Hence, the reason why the fair value of Lark`s assets and liabilities was used in the calculation above. So the net assets ($57,000+$165,000+$307,000+$203,000 - $20,000) = $712,000.
After, calculating the net assets of the Lark, the purchase consideration given by Bower Company has to be removed from the net asset, in order to get the goodwill or gain on purchase bargain on the acquisition. The formula is Purchase consideration - Net assets of the target company = Goodwill (Gain on purchase bargain). If the purchase consideration is higher than the net assets, then goodwill is obtained. If the purchase consideration is lower than net assets acquired then, gain on purchase bargain is obtained.
In Bower`s case, gain on purchase bargain is obtained because net assets is greater than purchase consideration ($632,000 - $712,000).
Merger cost
Merger cost is not considered as part of purchase consideration. The merger cost is taken to income statement of Bower Corporation as expense.
Companies may want to consider budgeting for contributions to employee loss expenses (such as funerals) as well as for counseling services for employees and loved ones as part of ____.
a. crisis management budgeting
b. incident response budgeting
c. risk assessment budgeting
d. recovery criticality budgeting
As a part of crisis management budgeting the companies contribute to employee loss expenses (such as funerals) as well as for counseling services for employees and loved ones.
Option a
Explanation:
The process through which the company manages an unexpected or disruptive event or happening that may threaten a harm or shortcoming to the employees or stakeholders or the organization.
This is considered to be the most vital process in the public relations. There are three major elements that are common to create a crisis namely,
(a) threat
(b) short decision time
(c) element of surprise
Every organization would priorly plan a budget for a year that would help in compensating the loss that occur during the start of that financial year.
This crisis management budgeting would be a support or a backup for the company if it is about to face a problem or slowdown.
Trend analysis is one method of examining changes in a firm's performance over time, which the analysis of only one year's ratios will not show.
The given statement " Trend analysis is one method of examining changes in a firm's performance over time, which the analysis of only one year's ratios will not show " is TRUE.
Explanation:
The trend analysis can also be used to do a comparative analysis to assess the financial company's performance over a time period. Compared to quantitative statistics, the trend analysis is more efficient, making top management more successful and smart decision-making.
Trends in working capital management and its impact on firms' performance.
In the corporate and financial industries, pattern analytics are relevant. Trend analyzes are often used to make financial stability predictions and analyses. To order to determine how the business can do in the future, financial analysts analyze the previous results and existing financial conditions.
The following financial statement information is from five separate companies:
Company
A Company
B Company
C Company
D Company
E
December 31, 2012
Assets $ 55,000 $ 34,000 $ 24,000 $ 60,000 $ 119,000
Liabilities 24,500 21,500 9,000 40,000 ?
December 31, 2013
Assets 58,000 40,000 ? 85,000 113,000
Liabilities ? 26,500 29,000 24,000 70,000
During year 2013
Owner investments 6,000 1,400 9,750 ? 6,500
Net income (loss) 8,500 ? 8,000 14,000 20,000
Owner cash withdrawals 3,500 2,000 5,875 0 11,000
_______________________________________________________________________________________________
Company A
#1. What is the amount of equity on December 31, 2012 for Company A.
#2. What is the amount of equity on December 31, 2013 for Company A
#3. What is the amount of liabilities on December 31, 2013 for Company A
Company B
#1. What is the amount of equity on December 31, 2012 Company B
#2. What is the amount of equity on December 31, 2013 Company B
#3. What is net income for year 2013 Company B
#4. Create a statement of Owners Equity
(Equity, December 31st, 2012 = )
(Equity, December 31st, 2013 = )
Company C
#1. Calculate the amount of assets for Company C on December 31, 2013
#2. Create a statement of Owners Equity
(Equity, December 31st, 2012 = )
(Equity, December 31st, 2013 = )
Company D
#1. Calculate the amount of owner investments for Company D during year 2013.
#2. Create a statement of Owners Equity
(Equity, December 31st, 2012 = )
(Equity, December 31st, 2013 = )
Company E
#1. Calculate the amount of liabilities for Company E on December 31, 2012.
#2. Create a statement of Owners Equity
(Equity, December 31st, 2012 = )
(Equity, December 31st, 2013 = )
The question asks for various calculations related to equity, assets, and liabilities of five companies according to the given data. The required financial information is calculated using key accounting formulas. Due to format constraints, the creation of equity statements were omitted from this response.
Explanation:The subject of this question revolves around 'financial statement analysis' and 'equity calculation'. We need to use the following formulas:
Assets = Liabilities + Equity Beginning Equity + Net Income (Loss) + Owner Investments - Owner Cash Withdrawals = Ending Equity
Let's breakdown the calculations for each company:
Company A
Equity on December 31, 2012 = Assets - Liabilities = $30,500 Equity on December 31, 2013 = Beginning Equity + Net Income - Cash Withdrawals + Investments = $41,500 Liabilities on December 31, 2013 = Assets - Equity = $16,500
Company B
Equity on December 31, 2012 = Assets - Liabilities = $12,500 Equity on December 31, 2013 = Assets - Liabilities = $13,500 Net Income = Ending Equity - Opening Equity + Cash Withdrawals - Investments = $3,600
Company C
Assets on December 31, 2013 = Starting Equity + Net Income - Cash Withdrawals + Investments = $32,875
Company D
Owner Investments = Ending Equity - Opening Equity + Cash Withdrawals - Net Income = $5,000
Company E
Liabilities on December 31, 2012 = Assets - Opening Equity - Net income + Cash Withdrawals - Investments = $43,000
The creation of an equity statement was not included in this summary due to length constraints.
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Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places.
The question is incomplete. The complete question is given as follows:
Assume the following relationships for the Caulder Corp.:
Sales/Total assets =1.3
Return on assets (ROA)=4.0 %
Return on equity (ROE)= 8.0%
Calculate Caulder’s profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital.
Answer:
Profit margin = 3.08%
Debt ratio = 50%
Explanation:
Lets consider the meaning of the following terminologies:
Return on Assets: Return on EquityAssets turnoverEquity ratioDebt ratioProfit margin: This ratio relates profit to the sales revenue. It is the percentage of the sales revenue that is made as profit.
It is calculated as;
Profit margin = (profit/Sales) × 100 or i
Profit margin = Return on assets / assets turnover ii
Asset Turnover: Asset turnover measures the number of times a one dollar worth of asset is used to generate sales. It gives an idea of how efficient a business is using its assets to generate sales. The higher the better.
Asset turnover = Sales revenue/assets.
It is given in the question as 1.3 times
Return on Assets (R.O.A) ; The is the proportion (in %) of the total assets that is made as profit. That is, how much profit is made for every one Dollar invested in assets. It can be calculated as:
R.O.A = (Profit/Assets) × 100
Note, Assets = equity capital + debt capital.
It is also given in this question as 4.0%
So now we can calculate our profit margin using the second formula under profit margin;
Profit margin = R.O.A/ Asset turnover
= 4.0/1.3
= 3.08 %
Lets continue;
Return on Equity (R.O.E). Equity capital is the capital provided by the ordinary shareholders. So the ROE measures, in percentage, the amount made as profit for every one Dollar of equity capital invested . That is, how much return is earned (in %) on every dollar of equity capital invested.
It is calculated as follows:
ROE= (Profit/equity capital )× 100
It is given in the question as 8.0%
Equity ratio: The is the proportion of the total assets that is financed by equity capital.
Equity ratio = equity capital/(equity capital + debt capital) i
= ROA / ROE ii
Debt ratio: Debt represents capital provided by external financiers in terms of loans and advances. So debt ratio is the proportion of the total assets that is financed by debt capital.
It is determined as;
Debt ratio= debt capital/(equity capital + debt capital) or
Debt ratio = 1 – equity ratio
So lets apply all of these to the question;
Debt ratio = 1 - equity ratio
Remember that equity ratio = ROA/ ROE (using the second formula under equity ratio)
so equity ratio = 4/8 = 0.5
Finally,
Debt ratio = 1 - 0.5
= 0.5 × 100
= 50%
Which of the following would most likely shift a production possibilities curve to the right?a. shifting resources from the production of one good to the production of anotherb. a decline in the size of the labor forcec. an improvement in the education level of the work force of a nationd. a sudden substantial increase in consumer desires to purchase goods
Answer:
Option (d) is correct.
Explanation:
Production possibility curve refers to the graphical representation of the combination of two goods that an economy can produce with the available resources.
If there is an increase in the demand for goods or we can say that the consumer's desires to the buy the good increases then as a result this will shift the production possibility curve rightwards. Now, more of both the goods are produce by the economy.
Which of the following linkages has its human resource management functions built right into the strategy formulation and implementation processes?
A. integrative linkage
B. administrative linkage
C. one-way linkage
D. two-way linkage
E. executive linkage
Answer:
The correct answer is letter "A": integrative linkage.
Explanation:
There are four (4) different ways the Human Resource Management (HRM) can link with its management process: administrative linkage, one-way linkage, two-way linkage, and integrative linkage. Integrative linkage involves taking into consideration all the employees within an organization before deciding on what the company will do to achieve its objectives. Even if success is not guaranteed, with this approach firms are likely to accomplish their mission thanks to the contribution of different points of view on regards to the company.
For each of the following situations, state whether you agree or disagree with the financial reporting practice employed, and briefly explain the reason for your answer.
1.
The controller of the Dumars Corporation increased the carrying value of land from its original cost of $2 million to its recently appraised value of $3.5 million.
Answer:
Yes I agree with the controller of Dumars corporation because this is what IAS 16 says. IAS 16 Property, Plant & Equipment says that the asset must reflect its Fair value in the face of financial statements. The fair value measurement must be undertaken at the end of the year. This fair value measurement guidance(Revaluation of Non-current Assets) is in line with the prudence concept which says that liabilities and expenses must not be understated and Assets and Income must not be overstated. If we don't revalue our asset then there is increased chances of undervaluing depreciation expense due to undervalued assets.
Accounting treatment must be:
1. Waive off all the accumulated depreciation related to the revalued asset.
Dr Accumulated Depreciation XX
Cr Revaluation Reserves XX
2. Increase the cost of the asset to the revalued amount:
Dr Land (3.5-2)m $1.5m
Cr Revaluation Reserves $1.5
In the nutshell, we can say that the carrying value of the asset has been increased to the amount revalued.
Suppose Scott has a budget of $56 that he spends on movies (Q1) and roller skating (Q2). The price of movie tickets recently increased from $5 per person to $8 per person, and the price of roller skating decreased from $8 to $7 per person. What is Scott's new budget constraint?
Answer:
1.6 Q1 + 0.875 Q2 = $56
Explanation:
Budget constraint equation represents the total budget allocation to different activities under consideration.
old Budget Constraint
Q1 + Q2 = $56
New Budget Constraint
(Q1)*8/5 + (Q2)*7/8 = $56
(Q1)*1.6 + (Q2)*7/8 = $56
(Q1)*1.6 + (Q2)*0.875 = $56
1.6 Q1 + 0.875 Q2 = $56
So best answer made based on data available.
What will be the effect on the contribution margin ratio if the selling price per unit decreases and variable cost per unit remains the same?
A) It will remain the same.
B) It will decrease.
C) It will increase.
D) It is impossible to determine with the given information.
Answer:
correct answer is B) It will decrease.
Explanation:
we know that contribution margin ratio is express as
contribution margin ratio = ( Sales Revenue - Variable Costs ) ÷ Sales Revenue ...........................1
so here any increase in selling price increase contribution margin
and if the selling price per unit is decreases
and variable cost per unit remain same
contribution margin ratio will decrease
so here correct answer is B) It will decrease.
Enzo Design Corporation reports the following cost information for March: Cost of Goods Manufactured $ 85 comma 000 Finished Goods Inventory, March 1 4 comma 000 Finished Goods Inventory, March 31 2 comma 700 Work-in-Process Inventory, March 1 9 comma 680 Work-in-Process Inventory, March 31 1 comma 250 Direct Labor 36 comma 000 Direct Materials Used 16 comma 900 What is the amount of manufacturing overhead incurred by the company in March?
Answer:
manufacturing overhead= $23,670
Explanation:
Giving the following information:
Cost of Goods Manufactured $85,000
Work-in-Process Inventory, March 1 $9,680
Work-in-Process Inventory, March 31 $1,250
Direct Labor $36,000
Direct Materials Used $16,900
To calculate the manufacturing overhead we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
85,000= 9,680 + 16,900 + 36,000 + MOH - 1,250
23,670= manufacturing overhead
Explain the importance of quality management and apply statistical quality control techniques.
Answer:
Explanation:
Quality management systems philosophy is a holistic understanding that accepts the system as a whole and sees quality as a customer-oriented common function of every element in this whole. In the most general sense, it is the whole of planned and systematic activities carried out with the aim of achieving the targeted quality in an organization. There are some special dimensions that are common in every quality trying to be created. Dimensions help to perceive quality from different and different angles. The quality perceived by the consumer is examined in eight dimensions:
-Performance
-Features
-Reliability
-Relevance
-Durability
-Service Ability
-Aesthetic
- Perceived Quality
Statistical process control is a method of monitoring the production process using statistical tools to manage product quality “directly in the production process”. Statistical quality or process control is common in the industry and is one of the main and mandatory methods for implementing the requirements of the ISO / TS 16949 standard in the automotive industry. A key tool of the method is the Shekhart control card. This is a graphical tool for collecting data and making decisions regarding the stability or predictability of any process, which determines how to manage the corresponding process. Purposes of Statistical quality control:
- determine whether the process is within the technical requirements.
- determine if the process is running as part of a statistically controlled state:
- if the process is in a “statistically controlled” state, it is known how it will behave in the future, and whether it is possible to count on its results.
- timely identification of trends for corrective actions before the release of non-conforming products (maintenance of the process in a "statistically controlled" state).
- monitoring continuous process improvement through reduced variability.