After completing the Walmart Assessment Test, you will immediately obtain your score. It will appear green if you passed.
What is Walmart assessment?An exam is used to assess potential candidates for employment at Walmart. It is called the Walmart Retail Associate Assessment (RAA) or Walmart Assessment Test. In a nutshell, the Walmart Assessment Test gauges applicants' capacity to comprehend and manage customer-related issues.Think of professional scenarios rather than personal ones as you respond to each question. Keep in mind that some questions may ask the same thing but under a different guise, so make every effort to be extremely consistent throughout your responses. According to Walmart, you ought to move swiftly and avoid devoting excessive time to any one query.You must pass each section of the four-part test in order to pass the entire thing. The entire application is a failure if you fail even one section. In contrast, you have six months to reapply if you do not pass the assessment test.To learn more about Walmart assessment refer to:
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lewis company is considering a project that requires an initial investment of $120,000 and will generate net cash flows of $32,000 per year for 6 years. lewis requires a return of 9% on its investments, and the present value factor of an annuity for 6 years at 9% is 4.4859. lewis company should not accept the project because its net present value is negative. group startstrue or falsetrue, unselectedfalse, unselected
Lewis Company shouldn't take on the project because it has a negative net present value. This statement is false.
What is meant by present value?Present value (PV) is the current value of a future financial asset or stream of cash flows, given a specific rate of return.
The value of a sum of money today is known as its present value. For instance, if you are promised $110 in a year, the present value is what that $110 is currently worth.
The future value is equal to the present value divided by the sum of 1 plus the interest rate per period raised to the number of time periods, according to the present value formula PV = FV/(1+i)n.
Given,
net present value =present value /(1+9%)6
=120000/(1+9%)6
=784800
The net present value is 784800
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Which of the following is most likely to occur in the commitment stage of developing partnerships?
A. Evaluating after-sales services
B. Gathering precall information
C. Managing change
D. Cold calling prospects
E. Getting an initial order
Managing change is most likely to occur in the commitment stage of developing partnerships
A partnership is a type of business where two or more people join forces to manage the risks of running a business, share ownership of the business, and make profits and losses together. The partners pledge to combine their resources for the benefit of the company. Partners should communicate openly and regularly about any changes that may impact the partnership. This can help to ensure that partners are aware of the changes.
Managing change is an important aspect of developing and maintaining partnerships. In the commitment stage of partnership development, partners have typically made a commitment to work together towards a shared goal and have established a framework for collaboration. At this stage, it is important for partners to be open to adapting to changing circumstances and to be willing to modify their approach as needed.
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on which of the following is there a tax incentive in the united states? (i) health insurance purchased through employers (ii) employer contributions for life insurance (iii) rental value on owner-occupied housing (iv) your mortgage
Answer: (iv) or (iii)
Explanation:
what differences, if any, are there between a list of components derived from a physical inspection and a list of components derived from control panel and system properties?
The main difference between a list of components derived from a physical inspection and a list of components derived from the control panel and system properties is the accuracy of the inventory.
A physical inspection of components allows for a more detailed and accurate inventory of components, as it includes a direct visual inspection of the components.
On the other hand, a list of components derived from the control panel and system properties is less accurate and is mainly used to identify general properties of the components, such as the type, brand, and version of the components.
Additionally, a physical inspection can help identify any deterioration in the components, which is not possible with a list of components derived from the control panel and system properties.
Furthermore, a physical inspection of components can help identify any irregularities in the components, such as a loose connection or a defective component, which is not possible with a list of components derived from the control panel and system properties.
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How does a baby inherit Tay-Sachs disease from his her parents?
A genetic ailment called Tay-Sachs is passed from one generation of parents to the next. When a child inherits a defect (mutation) in the HEXA gene from both parents, the condition takes place.
Why does Tay-Sachs illness occur?An enzyme known as B-Hexosaminidase A (HexA) is required for the regular breakdown of a fatty substance known as GM2 ganglioside by the neurons of the nervous system, including the brain and spinal cord. The gene that instructs the neurons to create HexA is mutated in TSD patients, preventing the neurons from manufacturing the enzyme. In other words, the fatty substance accumulates in the brain and spinal cord, resulting in cell death and injury. A child must have an altered gene copy from both parents in order to have TSD. This implies that for a kid to have TSD, both parents must be hereditary carriers.
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What are some of the key benefits of enterprise agile?
Being able to inspect and adapt at scale is more what enterprise agile is all about.
Agile is a notable improvement technique and the methodology of decision for the majority improvement groups, particularly those attempting to establish a climate of constant conveyance.
At the point when we consider Agile, we frequently consider elevated degrees of coordinated effort and adaptability well as an iterative climate in which necessities advance close by evolving needs. Therefore, we additionally will generally conceptualize Agile as a methodology that helps advancement groups across different enterprises convey new elements quicker.
There are many benefits of Agile methodology for project management. Agile techniques can assist groups with overseeing work all the more proficiently and accomplish the work all the more successfully while conveying the greatest item inside the requirements of the financial plan.
Significant advantages of visual project management for Agile include:
Perceivability of venture subtleties
Expanded group proficiency
Capacity to adjust to changes
Capacity to scale
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What are four ways taxes impact the economy?
Among the fundamental UK taxes are Value Added Tax, Capital Gains Tax, Inheritance Tax, and Property Taxes (VAT). Since many of them are progressive taxes, those with higher incomes are required to pay a larger portion of them.
How might taxes affect the economy?Since customers have less money to spend as a result of higher taxes, demand decreases. Trade is hampered since there is less money for the government to invest in roads as a result of decreased taxes. Lower taxes result in unemployment since the government can't afford to hire as many workers.
Long-term effects of taxes on the economy?primarily through the supply side. The way in which economic resources are distributed may be affected by specific tax preferences, but high marginal tax rates may hinder productivity, saving, investing, and innovation. However, tax reductions might also slow down long-term economic growth through increasing deficits.
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What are the 5 basic types of accounts?
The 5 types of bank account is:
Checking AccountSavings AccountCertificate of Deposit (CD)Money Market AccountIndividual Retirement Accounts (IRA)What is Bank Account?A bank account is a unique identity that your bank assigns to each deposit. We store our earnings in an account to do financial transactions with the money we withdraw from it. With one account, we can withdraw or deposit funds, purchase financial services, make payments and transfer funds to other accounts electronically. Accounts are like mini financial centers where we regulate our finances. It is essential that people can decide which bank account best suits their individual needs and circumstances.
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What is the main purpose of a loan?
Answer:
To get if you need help wit money or some
Explanation:
What are the 4 steps in the loan application process?
This is the initial stage of the loan origination process, which also includes the following steps: Loan Application, Application Processing, Underwriting Process, Credit Decision, Quality Check, and Loan Funding.
When one or more people, businesses, or other entities lend money to other people, businesses, or other entities, that is considered loan. In addition to the money borrowed, the recipient often becomes obligated to pay interest charges until the obligation is repaid. Documentation proving the debt typically includes details like the principal amount owed, the interest rate levied by the lender, and the payment deadline. The loan involves a temporary division of the subject asset between the lender and the borrower. Lender approval of the loan is motivated by the interest payment. Each of these conditions and requirements are upheld in a formal loan.
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the formula for the fixed asset turnover ratio equals . multiple choice question. net revenue/total assets net revenue/average net fixed assets net income/average total assets average net fixed assets/total assets
The asset turnover ratio is calculated as net revenue divided by the average total assets, where net revenues is the total income retained by the business.
Asset turnover: what is it?Asset turnover is the ratio of total income or sale to average assets. This metric can be used by investors to assess how effectively a business is using its resources to boost sales. The ratio of asset turnover is a tool used by investors to compare enterprises in the same sector or group.
Is substantial asset turnover beneficial?A greater ratio of asset turnover is preferable in general. A business is running more effectively than its rivals and making appropriate utilization of its capital when it earns more income from its assets. A poor asset turnover ratio could imply that a corporation has poor inventory control or surplus manufacturing capacity.
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outstanding stock of cavco included 20,000 shares of $5 par common stock and 4,000 shares of 6%, $10 par, cumulative preferred stock. in 2020, cavco declared and paid dividends of $3,000. in 2021, cavco declared and paid dividends of $6,000. how much of the 2021 dividend should be distributed to preferred shareholders?
The dividend that should be paid to preferred shareholders in 2021 is indicated in the presented statement at $2400.
Who is a shareholder's owner?Anyone who has "shares" in a corporation limited by shares is referred to by this moniker. In proportion to the number of shares you own, you are a shareholder and own a portion of the business. There may be one or many stockholders in a firm.
Briefing:The following chart illustrates how the dividend amount paid to preferred shareholders was calculated:
= Number of non-cumulative preferred stock shares × par value per share × dividend rate
= 4,000 shares × $10 × 6%
=2400$
If there are dividend arrears for the non-cumulative preferred shares, they are not paid.
To arrive at the projected value, we merely multiplied each common shares shares even by par value as well as the dividend yield.
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What is the difference between Scrum kanban and XP?
The key difference between Kanban and Scrum is that Kanban is continuous, while Scrum is iterative.
A Scrum team looks to enhance production over the period of successive sprints and to raise the team's "velocity," or the number of related estimation points accomplished in a sprint, whereas a Kanban group checks "cycle time" and aims for lead - time that are quick and predictable. Given its consistency and predictability, it reassures large organisations, Scrum may well be better suited for scalability.
While Scrum teams may not always work on each item in priority order once per sprint, XP teams must adhere to priority order when completing tasks. If the client decides on a new priority, XP teams can add new tasks to an iteration and swap out tasks of equal size (as long as they haven't been started).
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what is the first step that individuals responsible for the development of a business connuity plan should perform.
B. The BCP process as a whole is guided by the business organization analysis, which assists the initial planners in selecting suitable BCP team members.
Consider the potential effects of each kind of disaster or risk event that your company might face as the first step in building its BCP.
What is the most vital phase in the business coherence the executives cycle?Step 1: Risk evaluation. This phase consists of:...
Step 2: of the Business Impact Analysis (BIA)
Step 3: Developing a Business Continuity Plan.
Step 4: Plan and strategy development.
Step 5: Prepare for testing and upkeep.
What is the first step in a BCP for business continuity?Understanding the critical business processes is the first step in developing a business continuity plan. Due to, for example, revenue loss, interruptions in customer service, or damage to the brand, critical business processes are essential for the company's survival.
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Full Question = What is the first step that individuals responsible for the development of a business continuity plan should perform?
A. BCP team selection
B. Business organization analysis
C. Resource requirements analysis
D. Legal and regulatory assessment
A separate account for each material employed in the manufacturing process is found in the O general ledger O materials ledger O receiving report O job cost sheet
A separate account for each material that is employed in the manufacturing process is found in the materials ledger. Therefore, the correct answer is the second option.
A materials ledger is a tool that is used to collect transaction data for materials used in the manufacturing process. The materials that it collects data from are the ones whose master data is stored in the material master.
Materials ledger used the data to calculate prices to valuate these materials. It can calculate prices in multiple currencies and actual costing. Using a materials ledger improves the transparency of material movements and inventory.
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nelson manufacturing produces bulky heating systems that are installed in large office buildings. the company wants to avoid paying the high costs associated with shipping their product overseas. what would be the best way for nelson manufacturing to accomplish this?
The business should produce the goods locally. By doing this, the business can avoid paying the exorbitant price of transporting its goods abroad.
What is cost reduction?Cost reduction is a strategy adopted by businesses to lower their expenses and boost revenues. The techniques can change depending on the goods or services a firm offers. Every choice made during the product development process has an impact on the price.
Normally, businesses don't place a lot of emphasis on price when launching a new product. When competition develops and price becomes a differentiator in the market, cost becomes more significant.
Cost-cutting measures' significance in respect to other strategic corporate objectives is frequently contested.
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What does it mean when a company issues more stock?
The mean when a company issues more stock is the number of common stock that being traded in the stock market is increased.
What is the impact from company issues more stock?The company that issues more stock or additional shares will make the current investors or existing investor have share dilution.
Share dilution is can happen because there are too many stock in market than the normal because the additional shares that issued by company, it will make the value of existing shares decrease.
Thus, the mean when company issues more stock is the number of common stock will increase and can create share dilution.
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the return on shares of ustc company is predicted under the following various economic conditions:recession -0.05normal 0.07boom 0.24analysts estimate the probability of recession at .40, the probability of normal conditions at 0.30, and the probability of an economic boom at 0.30.what is the expected return of the stock?
It's the ability to understand and predict an outcome.
What is the expected share return?Percentage is the fraction of an amount expressed as a number out of hundred. The sign used to denote percentages is %. Percentages are used to measure frequency.Probability determines the odds that a random event would happen. The probability the event occurs is 1 and the probability that the event does not occur is 0. The more likely the event is to happen, the closer the probability value would be to 1. The less likely it is for the event not to happen, the closer the probability value would be to zero.Probability is calculated by dividing the number of ways the event can occur by the total number of outcomes. Probability and odds are different concepts. Odds are the probability that something happens divided by the probability that it doesn't happen.Probability provides information about the likelihood that something will happen. Meteorologists, for instance, use weather patterns to predict the probability of rain. In epidemiology, probability theory is used to understand the relationship between exposures and the risk of health effects.
The expected share return = (0.2 x 5) + (0.6 x 10) + (0.2 x 15%)
1 + 6 + 3 = 10%
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From a tax-paying investor’s point of view, a stock repurchase?
From a tax-paying standpoint, a stock repurchase makes more sense than a cash dividend.
A firm may repurchase its own shares from the market through this process. If management believes that a company's shares are undervalued, the company may repurchase its shares. There are two alternatives available to the firm: either it may purchase shares directly from the market or it can give its stockholders the option to sell their shares to the company at a predetermined price.
Repurchases lead to a decrease in the number of outstanding shares, which is often perceived by investors to increase stock prices. It is assumed that interest in the shares won't decline as a result of the action.
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What is the simple definition of agile?
Agile is a notable improvement technique and the methodology of decision for the majority improvement groups, particularly those attempting to establish a climate of constant conveyance.
At the point when we consider Agile, we frequently consider elevated degrees of coordinated effort and adaptability well as an iterative climate in which necessities advance close by evolving needs. Therefore, we additionally will generally conceptualize Agile as a methodology that helps advancement groups across different enterprises convey new elements quicker.
There are many benefits of Agile methodology for project management. Agile techniques can assist groups with overseeing work all the more proficiently and accomplish the work all the more successfully while conveying the greatest item inside the requirements of the financial plan.
Significant advantages of visual project management for Agile include:
Perceivability of venture subtleties
Expanded group proficiency
Capacity to adjust to changes
Capacity to scale
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viking corporation is operating at 80% of capacity, which means it produces 8,000 units. variable cost is $100 per unit. wholesaler y offers to buy 2,000 additional units at $120 per unit. wholesaler z proposes to buy 1,500 additional units at $140 per unit. which offer, if either, should viking corporation accept? fixed costs are not affected by accepting either offer.
Selling the products to Wholesaler Z is the wisest course of action. You still have the option to sell 500 additional units if Wholesaler Y approves.
Describe wholesalers:A supplying organisation called as a wholesaler serves as a go-between for manufacturers and retailers. With a retail license, they are able to purchase goods in bulk from producers at a lower cost and resell them to other company owners for a little premium. Typically, a wholesaler doesn't sell goods to final customers directly.
Briefing:Providing the following details:
Each unit carries a variable cost of $100.
Wholesaler Y promises to purchase 2,000 extra units for $120 each.
Wholesaler Z suggests purchasing 1,500 more units at a cost of $140 each.
In this scenario, the alternative with the highest revenue gain is the optimal option to select:
Income impact equals the whole contribution margin
Retailer Y:
Effect on income equals 2,000*(120 - 100) = a gain of $40,000
Retailer Z:
Effect on income equals 1,500*(140 - 100)= a gain of $60,000
Selling the products to Wholesaler Z is the wisest course of action. You still have the option to sell 500 additional units if Wholesaler Y approves.
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The complete question is-
Viking Corporation is operating at 80% of capacity, which means it produces 8,000 units. Variable cost is $ 100 per unit. Wholesaler Y offers to buy 2,000 additional units at $ 120 per unit. Wholesaler Z proposes to buy 1,500 additional units at $ 140 per unit. Which offer, if either, should Viking Corporation accept? Fixed costs are not affected by accepting either offer.
A. Accept both.
B. Reject both.
C. Accept Wholesaler Y
D. Accept Wholesaler Z
How much does taxes Remove from paycheck?
The tax deducted can be calculated through Paycheck by following steps:
Refer to your employer's withholding documents and current tax brackets to calculate your federal income taxCalculate your Federal Insurance Contributions Act (FICA) tax using the new rates for Medicare and Social SecurityDetermine if state income tax and other state and local taxes are withheld.Divide the total of all applicable taxes by the gross salary of the employeeThe result is the amount of tax deducted from the paycheckPaycheck are how businesses pay employees for their work. Typical delivery schedules are bi-weekly and monthly, although this varies based on employer preferences and state laws and regulations. Specific business requirements, such as a collective bargaining agreement that applies to union employees, may limit the amount of payment.
Traditionally, employees received printed cheque in person or by mail, but more often than not today, the money is deposited electronically into a bank account. Some employers may offer optional payment options, such as debit cards, which can be an advantage for unbanked employees.
How to calculate the tax deducted from the paycheck?
Refer to your employer's withholding documents and current tax brackets to calculate your federal income taxCalculate your Federal Insurance Contributions Act (FICA) tax using the new rates for Medicare and Social SecurityDetermine if state income tax and other state and local taxes are withheld.Divide the total of all applicable taxes by the gross salary of the employeeThe result is the amount of tax deducted from the paycheck.Statistics, though, are only one part of the big pay picture.
How to calculate net income
Determine your taxable income by subtracting any pre-tax contributions to benefitsWithhold all applicable taxes (federal, state and local)Deduct any after-tax contributions to benefitsDecorate the reward, if necessaryThe result is net incomeHow to calculate annual income
To calculate the annual salary, multiply the gross salary (before taxes) by the number of pay periods per year.
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$300 base price plus $20 per guest for up to 30 guests, what is the rate of change per guest?
$300 base price plus $20 per guest for up to 30 guests, the rate of change per guest
20 is the rate of change/slope
The term "rate of change" (ROC) describes the rate at which something changes over time. Thus, it is not the amount of individual changes themselves but rather the acceleration or deceleration of changes (i.e., the rate). Rate of change is a tool used in finance to comprehend price returns and spot trend momentum.A population of rats growing at 40 rats each week is another illustration of a rate of change. A vehicle moving at 68 miles per hour (distance traveled changes by 68 miles each hour as time passes) a vehicle traveling at 27 miles per gallon, or 27 miles for each gallon of fuel
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Why are databases important to business? How do databases generate sales and-or profits? What databases do you interact with, and how do they benefit you? What is meant by requirements gathering, and why is it important to clearly define the data requirements of a database before creating it? Read the General Business Example on page 7 of the Frost section of the text. This page describes how to categorize data requirements from a form used by a company called Reading Fool. Turn to page 12 of the text, and pick one of the practice exercises: 1, 2, 3, 4, or 5. Present your solution here. List the category first, and then put all of the data items in parentheses after the category.
Businesses depend on databases because they make it possible to store, manage, and access vast volumes of structured data quickly and effectively.
Databases may help firms increase revenue and bottom lines in a number of ways. Businesses, for instance, might learn more about the wants and preferences of their clients by storing consumer data.
The act of locating and composing a database's data requirements is known as requirements gathering. Before building a database, it's critical to identify these requirements precisely because doing so will help to ensure that the database is built to accommodate user needs and will be capable of supporting the needed procedures and functions.
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What is the term for the method of providing training to employees while they are on the job?
On the job training is the term that is used for the method of providing training to the employees while they are under employment of their jobs.
An employee is bound to receive training from the superiors or co-workers before he or she can actually begin working in an organization. On-the-job training is an essential practice to be undertaken before assigning any new project or task to a new employee in an organization. It helps in effective and mannerly completion of the activities and projects. The training becomes essential so that the employees are able to do what the companies want.
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when new firms enter a market, existing firms will sell than before, and their market power will . b. when firms exit a market, remaining firms will sell than before, and their market power will . c. if there is free exit from and entry into an industry, long-run economic profits will be for firms in that industry.
Market power is the capacity of a business (or collection of enterprises) to increase and maintain prices above the level that would prevail under competition.
How do economic profits change in the long run?Because an unlimited number of businesses are manufacturing uniform, endlessly divisible items, profits and losses are eventually abolished. There are no entrance hurdles for businesses, and all customers are fully informed.Long-term expansion of an industry occurs when there are economic profits in that business. As new businesses enter the market, the supply curve moves to the right, prices drop, and profits decline. Up until economic profits are nil, businesses keep entering the sector.Economic profit, also known as normal profit, must ultimately equal zero. Due to the introduction of new enterprises, which lowers the market price, economic profit is zero over the long term.fill in the blank answers
when new firms enter a market, existing firms will sell than before, and their market power will less. when firms exit a market, remaining firms will sell than before, and their market power will less. if there is free exit from and entry into an industry, long-run economic profits will be equal to zero for firms in that industry.Learn more about Market power refer to :
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lumeris inc., an automobile manufacturer, has an inflexible work schedule and requires its workers to work nine hours a day and six days a week. its laborers do not have adequate skills to perform their job efficiently. the inflexible work schedule and inadequate labor skills are examples of .
A corporation will have cost benefits as its output levels rise, according to the theory of economies of scale. As capacity and/or volume (production) rise, the average unit cost of a good in this case decreases.
What Are Economies of Scale?Cost advantages that businesses enjoy when production becomes efficient are known as economies of scale. By increasing production and reducing expenses, businesses can attain economies of scale. Costs are divided over a greater number of products, which causes this. Fixed and variable costs are both possible.Generally speaking, economies of scale are influenced by the size of the business. Cost savings increase when a company grows in size. There are internal and external economies of scale. Internal economies of scale are based on management choices, whereas external ones are affected by external forces.Among the internal tasks that are also regarded as operational efficiencies and synergies are accounting, information technology, and marketing.Costs per unit are reduced as a result of economies of scale for a number of different reasons. To start, increased technological integration and worker specialization increase output. Second, cheaper per-unit expenses may result from greater supplier purchases, more significant advertising investments, or lower capital costs. Third, spreading internal function costs across a larger volume of manufactured and sold units aids in cost reduction.To Learn more About economies of scale refer to:
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calgary industries is preparing a budgeted income statement. predicted sales for the year are $730,000 and cost of goods sold is 40% of sales. the expected selling expenses are $81,000 and the expected general and administrative expenses are $90,000, which includes $23,000 of depreciation. the company's income tax rate is 30%. budgeted net income is:
The budgeted net income for Calgary Industries is supposed to be $244,800.
How do you calculate the budgeted net income?Net Income = Sales - Cost of Goods Sold - Selling Expenses - General and Administrative Expenses - Depreciation - Income Tax
Plugging in the given values, we get:
Net Income = $730,000 - (40% * $730,000) - $81,000 - $90,000 - $23,000 - (30% * ($730,000 - (40% * $730,000) - $81,000 - $90,000 - $23,000))
The cost of goods sold is 40% of sales, so it is (40% * $730,000) = $292,000.
The income tax is 30% of the income before tax, which is $730,000 - (40% * $730,000) - $81,000 - $90,000 - $23,000 = $244,000.
Substituting these values into the formula above, we get:
Net Income = $730,000 - $292,000 - $81,000 - $90,000 - $23,000 - (30% * $244,000)
Net Income = $730,000 - $292,000 - $81,000 - $90,000 - $23,000 - (30% * $244,000)
Net Income = $730,000 - $292,000 - $81,000 - $90,000 - $23,000 - $73,200
Net Income = $244,800
Therefore, the budgeted net income for Calgary Industries is $244,800.
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which of the following might be expected fiscal policies under a keynesian approach? group of answer choices running a budget deficit. expanding government spending through new projects. government borrowing to fund programs. government control of markets. lowering taxes to increase public spending. cutting both taxes and spending.
The one that might be expected fiscal policies under a keynesian approach is option F. cutting both taxes and spending
What is a keynesian approach?Keynesians is of the opinion that since prices are somewhat rigid, fluctuations in any component of spending say consumption, investment, or government expenditures will cause output to change. If government spending increases, and all other spending components remain constant, then output will increase.
Therefore, the correct answer is as given above
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southwestern supply company has an economic order quantity for item a of 200 units. the annual demand for the product is 5,000 units, and the cost of placing an order is $8. if the company operates 200 days a year and the lead time for the item is five days, what is the reorder point if a safety stock of 50 units is maintained? a.4 days b.25 units c.50 units d.175 units
The EOQ model is actively used by economists within companies to plan the operations because this quantitative model allows the significant decrease of costs.
What do you understand by economic order quantity?Economic order quantity (EOQ) is a calculation companies perform that represents their ideal order size, allowing them to meet demand without overspending. Inventory managers calculate EOQ to minimize holding costs and excess inventory.Economic order quantity is important because it helps companies manage their inventory efficiently. Without inventory management techniques such as these, companies will tend to hold too much inventory during periods of low demand while also holding too little inventory during periods of high demand.Also referred to as 'optimum lot size,' the economic order quantity, or EOQ, is a calculation designed to find the optimal order quantity for businesses to minimize logistics costs, warehousing space, stockouts, and overstock costs. The formula is: EOQ = square root of: [2(setup costs)(demand rate)] / holding costs.Annual demand = 1,000
Working days = 250 days per year
Demand per day = 1000/ 250 = 4 units per day
Lead Time demand = Lead time x Average sales per day
= 6 days lead time x 4 units per day = 24 units
reorder point= Lead time demand + Safety stpock
Safety stock = Reorder point - lead time demand
= 50 - 24 units
Safety stock= 26 units
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