When economic profits are positive in a perfectly competitive industry, we would not expect the market supply curve to shift to the left as a result.
Positive economic profits would entice new businesses to enter the market, boosting competition and possibly causing a change in the market supply curve to the right in a perfectly competitive industry. Businesses are price takers in a totally competitive market, which means they have no control over the market price and must accept it as provided. It is a sign that the market price is higher than the average total cost of production when businesses in the sector are making economic profits. This draws new participants to the sector because they see a chance to make money.
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4-AREKS CORP. realize the production and marketing of a kind of an electrical appliance. Financial information of the business for a period are given below:
Unit Sale Price
Sales quantitiy
Production Quantity
Direct Material
Direct Labor
Variable Manufacturing Overhead
Fixed Manufacturing Overhead
Marketing Expenses
60$/Unit
29.100 Unit
35.200 Unit
12$/Unit
9 $/Unit
3 $/Unit
281.600 $
420.000 $
Administration Expenses
240.000 $
FIFO method is used fort he inventories.
a) Prepare the Income Statement with Full Costing Method,
b) Prepare the Income Statement with Variable Costing Method.
To prepare the income statement using the full costing method, we need to consider all the costs incurred in the production and sale of the electrical appliances. The income statement would include the following components:
a) Income Statement with Full Costing Method:
Sales Revenue:
Quantity Sold × Unit Sale Price = 29,100 units × $60 = $1,746,000
Cost of Goods Sold:
Direct Materials: Quantity Produced × Cost per Unit = 35,200 units × $12 = $422,400
Direct Labor: Quantity Produced × Cost per Unit = 35,200 units × $9 = $316,800
Variable Manufacturing Overhead: Quantity Produced × Cost per Unit = 35,200 units × $3 = $105,600
Total Manufacturing Cost = Direct Materials + Direct Labor + Variable Manufacturing Overhead
Total Manufacturing Cost = $422,400 + $316,800 + $105,600 = $844,800
Gross Profit:
Sales Revenue - Cost of Goods Sold = $1,746,000 - $844,800 = $901,200
Operating Expenses:
Fixed Manufacturing Overhead = $281,600
Marketing Expenses = $420,000
Administration Expenses = $240,000
Total Operating Expenses = Fixed Manufacturing Overhead + Marketing Expenses + Administration Expenses
Total Operating Expenses = $281,600 + $420,000 + $240,000 = $941,600
Net Income:
Gross Profit - Total Operating Expenses = $901,200 - $941,600 = -$40,400
b) To prepare the income statement using the variable costing method, we will only consider the variable costs directly associated with the production and sale of the electrical appliances. The income statement would include the following components:
b) Income Statement with Variable Costing Method:
Sales Revenue:
$1,746,000 (same as in the full costing method)
Variable Cost of Goods Sold:
Direct Materials: Quantity Produced × Cost per Unit = 35,200 units × $12 = $422,400
Direct Labor: Quantity Produced × Cost per Unit = 35,200 units × $9 = $316,800
Variable Manufacturing Overhead: Quantity Produced × Cost per Unit = 35,200 units × $3 = $105,600
Total Variable Manufacturing Cost = Direct Materials + Direct Labor + Variable Manufacturing Overhead
Total Variable Manufacturing Cost = $422,400 + $316,800 + $105,600 = $844,800
Variable Selling and Administrative Expenses:
Marketing Expenses = $420,000
Contribution Margin:
Sales Revenue - Variable Cost of Goods Sold - Variable Selling and Administrative Expenses
$1,746,000 - $844,800 - $420,000 = $481,200
Fixed Manufacturing Overhead: $281,600 (not included in the variable costing method)
Fixed Selling and Administrative Expenses:
Administration Expenses = $240,000
Net Income:
Contribution Margin - Fixed Manufacturing Overhead - Fixed Selling and Administrative Expenses
$481,200 - $281,600 - $240,000 = -$40,400
In both methods, the net income is -$40,400. The difference lies in the treatment of fixed manufacturing overhead. The full costing method allocates fixed manufacturing overhead to the cost of goods sold, while the variable costing method does not.
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By assumption, individual preferences must be transitive. Suppose Marsha, Jan, and Cindy individually have transitive preferences over three goods: Oranges, apples, and pears. Marsha, Jan, and Cindy have decided to vote on whether to name oranges, apples, or pears the "fruit of the month." Show that it is possible that the group’s majority preferences might not be transitive.
Given that Marsha, Jan, and Cindy individually have transitive preferences over three goods: Oranges, apples, and pears. The transitivity is defined as the property of preferences whereby if an individual prefers option A to B and option B to C, then the individual must prefer option A to C.
Hence, we will assume that Marsha, Jan, and Cindy have the following individual preferences: Marsha prefers Oranges > Apples > Pears Jan prefers Apples > Pears > Oranges Cindy prefers Pears > Oranges > Apples Case 1:Oranges > Apples and Apples > Pears does not imply Oranges > Pears Case 2: Apples > Pears and Pears > Oranges does not imply Apples > Oranges Case 3: Pears > Oranges and Oranges > Apples does not imply Pears > Apples The group’s preferences may not be transitive in this case if we look at the preferences by all the three people together.
It is possible that the group’s majority preferences might not be transitive. Explanation: Based on individual preferences, we can't make out what fruit of the month would be. For example, in the individual preference of Marsha, Oranges come first, and in Cindy's preference, Oranges come last. So we need to look at the group preferences to make out what would be the Fruit of the Month. But as we see the group preferences, the group preferences can not be transitive.
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Conservatively leveraged Firm A and highly leveraged Firm B operate at the same level of earnings before interest and taxes. Which firm has a higher change in volume?
A. Firm A
B. Firm B
C. The change in volume does not affect the amount of leverage.
D. There is not enough information to answer the question.
The change in volume does not affect the amount of leverage firm has a higher change in volume. The answer is OPTION C.
Due to the high percentage of fixed expenses in an organisation with strong operating leverage, a significant rise in sales may result in outsized increases in profitability. companies in emerging sectors with strong growth prospects.
Businesses operating in predictable, stable sectors with steady financial flows. technology firms. businesses that are not very profitable. Because expenses are spent regardless of sales levels, a firm will struggle to handle short-term revenue fluctuations if fixed costs are significant. This raises risk and frequently results in a lack of flexibility, which is bad for business.
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Turtle Creek Partnership had the following revenues, expenses, gains, losses, and distributions: Sales revenue $ 56,500 Long-term capital gains $ 4,700) Cost of goods sold $ (19,900) Depreciation-MACRS $ (5,800) Amortization of organization costs $ (1,960) $ (10,300) Guaranteed payments to partners for general management Cash distributions to partners $ (4,100) a. Given these items, what is Turtle Creek's ordinary business income (loss) for the year?
The given items are: Sales revenue $ 56,500 Long-term capital gains $ 4,700)Cost of goods sold $ (19,900)Depreciation-MACRS $ (5,800)Amortization of organization costs $ (1,960)$ (10,300)
Guaranteed payments to partners for general management cash distributions to partners $ (4,100)Calculation of the Turtle Creek's ordinary business income (loss) for the year: Sales Revenue 56,500Cost of goods sold (19,900)Gross Profit 36,600Long-term capital gains 4,700Depreciation-MACRS (5,800)
Amortization of organization costs (1,960)Guaranteed payments to partners for general management (10,300)Ordinary Business Income (Loss) 23,240Therefore, Turtle Creek's ordinary business income (loss) for the year is $23,240.
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Brana Company is financed 75 percent by equity and 25 percent by debt. If the firm expects to earn $30 million in net income next year and retain 40% of it, how large can the capital budget be before new common stock must be sold? O $120 million 575 million $15.5 million O 516.0 million
The correct option for the given question is option B, which is $575 million. Explanation: The dividend payout ratio of the Brana Company is (1-0.40) = 0.60 or 60%. The amount of dividends paid out of the $30 million of net income will be $30 million × 0.60 = $18 million.
The remaining amount of the net income that is retained is $30 million - $18 million = $12 million. The total amount of capital available for investment is thus equal to the amount of net income retained plus any debt financing, or $12 million + 0.25C, where C is the capital budget. Therefore, the amount of funding where new common stock must be sold is equal to the amount of equity financing, or 0.75C. The equation that defines the amount of the budget where new common stock must be sold is:0.75C = $12 million + 0.25CCollecting like terms gives:0.50C = $12 millionDividing both sides by 0.50 gives: C = $24 million
Therefore, the capital budget can be $24 million before new common stock must be sold. The answer, however, is not $24 million, as the question asked how large the capital budget can be before new common stock must be sold. The answer is instead:0.75C = $24 millionC = $24 million / 0.75 = $32 millionThis is the total capital budget that includes the debt financing. The amount of equity financing is therefore:$32 million – ($32 million × 0.25) = $32 million – $8 million = $24 million, the capital budget where new common stock must be sold is $32 million, of which $24 million is equity financing, which represents 75% of the total capital budget. Therefore, the answer is $32 million or $575 million.
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: 1. What is the original return on investment (ROI) for Anderson Ceramics (before making any additional investment)? 2. What would the ROI be for Anderson Ceramics if this investment opportunity were undertaken? Would the manager of the Anderson Ceramics division want to make this investment if she were evaluated based on ROI? Why or why not? 3. What is the ROI of the investment opportunity? Would the investment be desirable from the standpoint of Alderman Corporation? Why or why not? 4. What would the residual income (RI) be for Anderson Ceramics if this investment opportunity were to be undertaken? Would the manager of the Anderson Ceramics division want to make this investment if she were evaluated based on RI? Why or why not? 5. What is the Rl of the investment opportunity? Would the investment be desirable from the standpoint of Alderman Corporation? Why or why not? 6. Which performance measurement method, ROI or RI, promotes goal congruence? Why?
The original return on investment (ROI) for Anderson Ceramics is 20%. If the new investment opportunity is undertaken, the ROI would be 18%. The manager wouldn't make the investment as it would lower the overall ROI. ROI formula: (Operating income / Total assets) * 100.
Requirement 1:
To calculate the original return on investment (ROI) for Anderson Ceramics, we use the formula:
ROI = (Operating income / Total assets) * 100
Given
Operating income = $82,000
Total assets = $410,000
Plugging in the values:
ROI = ($82,000 / $410,000) * 100
Calculating this gives us:
ROI = 20%
Therefore, the original return on investment (ROI) for Anderson Ceramics is 20%.
Requirement 2
If the new investment opportunity were undertaken, we need to recalculate the ROI. The investment would require $164,000 and earn $21,320 for the company.
New Operating income = Original Operating income + Income from new investment = $82,000 + $21,320 = $103,320
New Total assets = Original Total assets + Investment = $410,000 + $164,000 = $574,000
New ROI = (New Operating income / New Total assets) * 100 = ($103,320 / $574,000) * 100
Calculating this gives us
New ROI = 18%
The manager of the Anderson Ceramics division would not want to make this investment if evaluated based on ROI because the new ROI of 18% is lower than the original ROI of 20%. Making the investment would decrease the overall ROI.
Requirement 3
The formula to calculate ROI is:
ROI = (Operating income / Total assets) * 100
Operating income refers to the division's income before taxes and interest.
Total assets represent the average total assets employed by the division.
By dividing the operating income by the total assets and multiplying the result by 100, we obtain the ROI percentage, which is a measure of the division's profitability and efficiency in utilizing its assets.
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--The given question is incomplete, the complete question is given below " Anderson Ceramics, a division of Alderman Corporation, has an operating income of $82,000 and total assets of $410,000. The required rate of return for the company is 11%. The company is evaluating whether it should use return on investment (ROI) or residual income (RI) as a measurement of performance for its division managers. The manager of Anderson Ceramics has the opportunity to undertake a new project that will require an investment of $164,000. This investment would earn $21,320 for the company. Read the requirements. 1. What is the original return on investment (ROI) for Anderson Ceramics (before making any additional investment)? 2. What would the ROI be for Anderson Ceramics if this investment opportunity were undertaken? Would the manager of the Anderson Ceramics division want to make this investment if she were evaluated based on ROI? Why or why not? 3. determine the formula to calculate the ROI. Operating income Total assets ROI (Enter the percentage to two decimal places.) The original return on investment (ROI) for Anderson Ceramics is 20 %. give the answer in parts."--
The manager of a medium-sized business was heard to remark: "My business is one which involves too many uncertainties for a budget to be of any use to me Required: Discuss any FOUR (4) benefits of preparing budgets for an organisation. (12 marks) Question 3 (Part B) Best Athletics Ltd, which develops and runs athletics training programs for primary schools, has budgeted revenue for the first 6 months of 2022 as follows: Month January Budgeted revenue $10 000
Business planning is the cycle by which an association's chiefs sort out the best guide for development and record their arrangement for progress.
The process of business planning involves determining the company's internal strengths and weaknesses, increasing efficiency, figuring out how it will compete with rival businesses in the future, and establishing measurable progress milestones.
A written document known as a business plan contains an outline as well as the resources required to succeed.
1) Planning can assist you with defining long haul monetary objectives, hold you back from overspending, assist with closing down dangerous ways of managing money, and that's just the beginning.
works with you to achieve long-term objectives.can keep you from spending too much.Can Facilitate Retirement Savings.Assists You With getting ready for Crises.can reveal habits of spending.The primary concern.2) The second part is incomplete.
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you are concerned with unrecorded transactions in the purchasing cycle. which audit procedure are you most likely to use when auditing purchases
When auditing purchases, the audit procedure which is most likely to be used when an auditor is concerned with unrecorded transactions in the purchasing cycle is to observe receiving operations.
In an audit of purchasing transactions, unrecorded purchases are detected through the auditor's assessment of the entity's controls over receiving and recording of inventory. The auditor will pay particular attention to the possibility of purchases being recorded on the correct date. The audit procedure which is most likely to be used when an auditor is concerned with unrecorded transactions in the purchasing cycle is to observe receiving operations.
Here is a brief explanation of the audit procedure of observing receiving operations:
Observing Receiving Operations: Observing receiving operations is the procedure in which the auditor examines whether the goods have been received and checked by the client and whether the receipt is correctly recorded. This approach involves physically observing the goods being received and recording the related documentation.This procedure is particularly useful for detecting unrecorded purchases. If a purchase is made without any record of it, the auditor would be able to detect it through observing receiving operations.
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Max, a single taxpayer, has a $280,000 loss from his sole proprietorship in 2022. How much of this loss is deductible after considering the excess business loss rules?
*
$280,000
$270,000
$10,000
$0
None of the choices are correct.
Based on the information provided, Max's deductible loss after considering the excess business loss rules would be: $0
The excess business loss rules, introduced under the Tax Cuts and Jobs Act (TCJA) of 2017, limit the amount of business losses that can be deducted in a given year. For single taxpayers in 2022, the limit is set at $524,000 for individuals and $1,048,000 for married individuals filing jointly. Since Max's loss of $280,000 exceeds the allowable limit, he would not be able to deduct any portion of the loss in the current year. However, the unused loss can be carried forward to future years and used to offset future business income or other eligible income.
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Today is 15 May 2022. Saamiya has just purchased a Treasury bond with a face value of $100, maturing at par and paying coupon at j2 = 3.4% p.a. The purchase price was $100.065. The maturity date of this bond is 15 May 2024. QUESTION 4 [2 marks] Use the bond salesperson's formula to estimate Saamiya's purchase yield. Give your answer in j2 form, rounded to three decimal places. a. 1.683% p.a. b. 1.809% p.a. c. 2.999% p.a. d. 3.366% p.a. QUESTION 5 [2 marks] Use linear interpolation to calculate the yield rate. Give your answer in j2 form, rounded to three decimal places. Hint: 1.65% per half year and 1.9% per half year are the lower bound and the upper bound for the linear interpolation. a. 1.683% p.a. b. 3.201% p.a. c. 3.366% p.a. d. 3.550% p.a. QUESTION 6 [2 marks] Which of the following statements is incorrect? a. The duration of this Treasury bond will be higher if its coupon rate is higher. b. We can use the duration of this Treasury bond to measure its price sensitivity. c. The duration of this Treasury bond will increase if the yield rate at purchase is lower. d. The purchase price of this Treasury bond will decrease, if this Treasury bond is subject to a 30% tax on both interest and capital gains.
For question 4, the bond salesperson's formula is used to estimate the purchase yield. It considers the face value, purchase price, coupon rate, and time to maturity of the bond. By applying the formula, we arrive at the correct answer of d. 3.366% p.a.
In question 5, linear interpolation is used to calculate the yield rate that corresponds to the given purchase price. The lower bound and upper bound yields provided are used to estimate the yield rate within that range. By interpolating between the bounds, we find that the yield rate is approximately 3.366% p.a., which aligns with option c.
Regarding question 6, the incorrect statement is d. The purchase price of a Treasury bond is not directly affected by taxes on interest and capital gains. Taxes may impact the after-tax returns received by the investor, but they do not affect the purchase price of the bond itself. Therefore, option d is incorrect.
In summary, the estimated purchase yield is 3.366% p.a. using the bond salesperson's formula. The yield rate calculated through linear interpolation is also 3.366% p.a. Lastly, the incorrect statement is d, as taxes on interest and capital gains do not affect the purchase price of the Treasury bond.
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The price level in the general is more flexible downward than upward. OA) true B) false
The statement "The price level in general is more flexible downward than upward" is true.
The price level is defined as the average level of prices for goods and services in an economy. The price level is an essential aspect of the economy and reflects the overall state of the economy. The price level is more flexible downwards than upwards, as producers will adjust the prices of goods and services downwards more easily than upwards.When the price level falls, the firms producing goods and services will adjust their prices to meet the new price level. A lower price level leads to an increase in aggregate demand, which in turn leads to an increase in production. Conversely, when the price level rises, firms find it more challenging to adjust their prices, and this results in a decrease in aggregate demand. This leads to a decrease in production and a contraction of the economy as a whole.
Therefore, the price level in general is more flexible downward than upward.
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The table below gives information extracted from the annual accounts of Make-it (Pty) Ltd for the past two years. Make-it (Pty) Ltd : Extracts from year-end accounts: Stocks: Raw materials Work-in- progress Finished goods Purchases Cost of goods sold Sales Debtors Trade creditors Year 1 R'000 276 186 285 1 440 2 196 2 376 594 252 Year 2 R'000 291 194 259 1 404 1 944 2 160 562 210 You are required to: Answer the following questions: a) Calculate the length of the working capital cycle for years 1 and 2 assuming 365 days in the year and using end of year working capital balances, not averages.
The length of the working capital cycle for year 1 is approximately 75.16 days, and for year 2 it is approximately 102.94 days. To calculate the length of the working capital cycle for years 1 and 2, we need to consider the components involved: stocks, debtors, and trade creditors. The formula to calculate the working capital cycle is:
Working Capital Cycle = Days of Inventory + Days of Receivables - Days of Payables
We will calculate each component separately and then subtract the days of payables from the sum of days of inventory and days of receivables.
Let's calculate the working capital cycle for years 1 and 2 using the given information:
Year 1: Days of Inventory = (Stocks / Cost of Goods Sold) * 365
= ((276 + 186 + 285) / 2,196) * 365
= 47.04 days
Days of Receivables = (Debtors / Sales) * 365
= (594 / 2,376) * 365
= 91.87 days
Days of Payables = (Trade Creditors / Purchases) * 365
= (252 / 1,440) * 365
= 63.75 days
Working Capital Cycle (Year 1) = Days of Inventory + Days of Receivables - Days of Payables
= 47.04 + 91.87 - 63.75
= 75.16 days
Year 2: Days of Inventory = (Stocks / Cost of Goods Sold) * 365
= ((291 + 194 + 259) / 1,944) * 365
= 62.79 days
Days of Receivables = (Debtors / Sales) * 365
= (562 / 2,160) * 365
= 95.21 days
Days of Payables = (Trade Creditors / Purchases) * 365
= (210 / 1,404) * 365
= 55.06 days
Working Capital Cycle (Year 2) = Days of Inventory + Days of Receivables - Days of Payables
= 62.79 + 95.21 - 55.06
= 102.94 days
Therefore, the length of the working capital cycle for year 1 is approximately 75.16 days, and for year 2 it is approximately 102.94 days.
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What are games in sequence? Give explain each sequential type of games with:
a) Game in extensive form
b) Backward induction
c) Equilibrium strategy
d) First mover advantage
e) Uncertain consequences
"Games in sequence" refers to sequential games where participants take turns acting or making choices in the context of game theory.
a) Game in extensive form: A game in broad structure is a graphical portrayal of a consecutive game that shows the request for moves, the accessible methodologies, and the potential results.
b) Backward induction: In reverse enlistment is an answer idea utilized in consecutive games to decide the ideal technique for every player.
c) Equilibrium strategy: A balance procedure is a bunch of systems, one for every player, where no player has a motivator to digress from their picked methodology singularly.
d) First mover advantage: First mover advantage alludes to the advantage or benefit that a player acquires by making the main move in a consecutive game.
e) Uncertain consequences: Questionable results in consecutive games allude to circumstances where the results or adjustments related with various techniques are not known with conviction.
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Interest expense increases each period because the carrying value of the debt issued at a discount increases over time
True
False
The given assertion "Interest expense builds every period in light of the fact that the conveying worth of the obligation gave at a rebate increment after some time is True because when debt is given at a markdown, the conveying worth of the obligation expands every period as the rebate is amortized.
As the conveying esteem increments, so does how much interest cost is recorded every period. This is because the premium cost is determined as a level of the conveying worth of the debt.
Consequently, interest cost builds every period as the conveying worth of the obligation given at a markdown increments after some time. This is because the markdown is step-by-step amortized, bringing about a higher conveying esteem and thusly a higher interest cost.
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"Risk Assessment Matrix & Risk Based Audit Plan (9 marks: 3 marks for part A; 2 each for parts B to D)-response not to exceed 2 pages (double-spaced/12-font):
Robertson Iron & Steel Powders (RISP) is a major producer of iron and steel powders, with sales in more than 25 countries throughout the world. Its product lines serve all major fields of application: manufacturing parts for the automotive, appliance, electric tool, and lawn and garden industries; welding and alloying; reprography; and the food industry. RISP was formed in 1968 to manufacture iron powder from the high-purity iron produced by another division of the group. It is owned by International Iron Inc., one of the largest minerals and metals companies in the world, which has its bead office in the United States. The mission of RISP is to meet and exceed customers’ specifications through a total quality system. The company constantly puts new products on the market to meet the evolving requirements of the industry.
The company has had several problems in the past in meeting the environmental requirements for its industrial waste. The environment department and ecological groups have also complained that the company has polluted the river and caused environmental damage during the last decade. Management’s relationship with its employees and their union have always been tense. The company is thinking about closing its plant and outsourcing its production to vendors located in South America. This option would involve transferring some technological knowledge to vendors and increasing transportation costs, but would enable the company to reduce toxic waste in Canada.
Required :
The president of the company is aware that there are some risks associated with the decision to outsource the production to South America. To help him make a decision, he has asked you, the director of the management audit department, to prepare some discussion notes to assist in the decision and subsequent control should the decision be made. Those notes should:
a) Create a Risk Assessment Matrix (score 9: High; 5: Medium; 1: Low) to identify and prioritize the risks that RISP will be exposed to if it decides to outsource its production to South America.
b) Provide an example of 4 Responses an organization can take toward a risk. List the Responses; for each of the risks you identified in part A (above) briefly describe a Response & Example that could be applied to it.
c) State the scope and the objectives for a management audit of RISP’s manufacturing activities in South America, if it decides to outsource its production.
d) State the criteria to use for evaluating RISP’s efforts to address each risk, if it decides to outsource its production."
a) Risk Assessment Matrix: Environmental compliance (9, 9), Technological knowledge transfer (7, 6), Transportation costs (5, 7), Quality control (4, 5), Employee relations (3, 9).
b) Responses: Environmental standards, knowledge transfer protocols, logistics optimization, robust quality control.
a) Chance Evaluation Framework:
The dangers related with re-appropriating creation to South America for RISP can be surveyed and focused on utilizing the accompanying Gamble Evaluation Grid:
Ecological consistence: High probability (9) and high effect (9) risk.
Move of innovative information: Medium probability (7) and medium effect (6) risk.
Expanded transportation costs: Medium probability (5) and high effect (7) risk.
Quality control issues: Low probability (4) and medium effect (5) risk.
Representative and association relations: Low probability (3) and high effect (9) risk.
b) Reactions to recognized gambles:
1. Ecological consistence issues: Lay out severe natural guidelines and checking conventions for merchants. Model: Execute normal reviews to guarantee consistence with natural guidelines.
2. Move of innovative information: Execute information move cycles and arrangements to safeguard protected innovation. Model: Foster thorough preparation programs for sellers' representatives and lay out non-exposure arrangements.
3. Expanded transportation costs: Improve strategies and arrange positive transportation contracts. Model: Investigate mass delivery choices, vital appropriation communities, and long haul contracts with solid transportation suppliers.
4. Quality control issues: Carry out strong quality control cycles and provider execution checking. Model: Lead normal quality reviews, perform investigations at merchant offices, and lay out clear quality principles and execution measurements.
c) Degree and goals for an administration review:
Scope: The administration review will zero in on RISP's assembling exercises in South America, explicitly connected with the rethought creation.
Targets:
1. Evaluate the adequacy of seller determination and a reasonable level of investment processes.
2. Assess the sufficiency of information move systems and security of licensed innovation.
3. Survey the execution of value control measures at merchant offices.
4. Analyze consistence with natural guidelines and waste administration rehearses.
5. Evaluate the effect of the rethinking choice on worker and association relations.
d) Standards for assessing risk relief endeavors:
1. Natural consistence issues: Customary checking, archived consistence records, nonattendance of ecological occurrences, and positive input from ecological specialists.
2. Move of mechanical information: Fruition of information move exercises, consented to arrangements safeguarding licensed innovation, merchant representatives' capability in moved innovation, and nonappearance of innovation holes or abuse.
3. Expanded transportation costs: Accomplishment of cost decrease targets, enhanced coordinated factors processes, proof of ideal transportation contracts, and productive inventory network activities.
4. Quality control issues: Consistence with quality principles, nonappearance of huge item reviews or client objections, positive criticism from clients in regards to item quality, and convenient goal of any quality-related issues.
Note: The reaction gave is a succinct variant without a table, and the genuine gamble evaluation, reactions, degree, targets, and measures might differ in light of the particular setting and prerequisites of RISP.
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an organization that fully adopts the six sigma methodology: select one: a. completes a few six sigma projects and reaps the financial benefits b. continuously measures and improves processes indefinitely c. improves upon a few processes then moves on d. identifies and prioritizes areas of opportunity once or twice a year
The organization that fully adopts the Six Sigma methodology Option B. continuously measures and improves processes indefinitely
Six Sigma is a data-driven quality management system that seeks to eliminate defects and process variability. It is a disciplined, data-driven approach to process improvement and problem-solving, with a focus on reducing defects and errors. Six Sigma methodology is widely adopted in various sectors to improve their business operations. Six Sigma defines a defect as any failure to meet the customer's requirements, and it aims to reduce or eliminate these defects by identifying and removing the causes of variation.
Six Sigma uses a DMAIC (Define, Measure, Analyze, Improve, Control) framework to identify and solve problems. The key principles of Six Sigma are: Focus on the customer and their requirements; Measure and analyze data to identify and eliminate defects; Use data to make decisions; Involve all employees in the process; Continuously improve the process.
To fully adopt Six Sigma, an organization must continuously measure and improve processes indefinitely. Six Sigma aims to make the organization more efficient, reduce costs, and improve quality, which is achieved by continually improving the process. Therefore, the correct option is B.
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An organization fully adopting Six Sigma seeks continuous, indefinite improvements using data-driven decisions, rather than treating it as a one-time exercise or opportunity-based approach.
Explanation:An organization that fully adopts the Six Sigma methodology continuously measures and improves its processes indefinitely. This method emphasizes correlating improvements with principled data analysis, not simply making decisions based on assumptions or guesses. Therefore, these organizations do not limit their use of the methodology to a few projects or identify opportunities for improvement only once or twice a year. Instead, they integrate Six Sigma into their core operational procedures and culture, aiming for perpetual enhancement as a primary objective.
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23 02:22:13 Skipped eBook Mc Graw Hill FI Demand is generally Multiple Choice O relatively more elastic in the long run than in the short run. relatively more elastic in the short run than in the long
Demand is generally relatively more elastic in the long run than in the short run.
In the short run, consumers may have limited options and time to adjust their consumption patterns in response to changes in price. They may be more constrained by their current income levels, habits, and immediate needs. Therefore, the demand for a product tends to be less responsive to price changes in the short run, resulting in relatively inelastic demand.
In the long run, consumers have more flexibility to make adjustments to their consumption patterns. They can explore alternatives, change their preferences, and adjust their spending habits. Additionally, in the long run, consumers may have the opportunity to increase their income, which can further influence their demand for goods and services. As a result, the demand for a product becomes relatively more elastic in the long run, meaning that consumers are more responsive to changes in price.
Overall, the elasticity of demand depends on the time horizon considered. In the short run, demand tends to be relatively inelastic, while in the long run, it becomes relatively more elastic as consumers have more flexibility and options to adjust their behavior.
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Task 1: The European Monetary System (1979-1998) 1a) What was the European Monetary System (EMS)? Why was it established? 1b) How and why was it dominated by Germany? What were the consequences of this dominance? 1c) What place did Austria find in this system?
The European Monetary System (EMS) was established in 1979. It was an agreement between European nations to coordinate economic policies and stabilize their currencies. The EMS was established to create a framework for financial integration among the member states of the European Community (EC). EMS played a crucial role in the establishment of the European Union (EU) in the late 1990s.
1b) Germany dominated the European Monetary System (EMS) in terms of monetary and economic power, due to its economic strength. It dominated the Exchange Rate Mechanism (ERM) which was part of the EMS, and Germany was the anchor country for the ERM.As a result of German domination, the exchange rate stability of other countries was hampered. German monetary policy became the guiding principle for other member states, which resulted in a loss of monetary independence for smaller countries.
The consequences of this dominance were the increasing loss of monetary independence of other member states. Countries were forced to align their policies with the German monetary policy, which was at times inappropriate for their specific economic conditions. Austria found itself in a precarious position in the EMS due to its membership in a common economic bloc with Germany. Austria was forced to align its policies with the German monetary policy which was not always ideal for Austria's unique economic conditions. Austria's membership in the EMS brought stability to its currency and economic growth, but it also lost its monetary independence to some extent.
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NPV for Machine A & B please!
Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table: Machine A Machine B $15,000 $24,000 $2,200 $4,800 Orig
To find the Net Present Value (NPV) of Machines A and B, we need to use the following formula:NPV = -Initial investment + Present value of cash inflows.
Machine A has an initial investment of $15,000 and annual cash inflows of $2,200 for three years. The cost of capital is 8%.We need to first calculate the present value factor for 3 years at 8%. Present value factor for 3 years at 8% = 1 / (1 + 8%)^3 = 0.7938.Now we can calculate the present value of cash inflows for Machine A:Present value of cash inflows = $2,200 x 0.7938 + $2,200 x 0.6289 + $2,200 x 0.4972 = $5,529.20NPV of Machine A = -$15,000 + $5,529.20 = -$9,470.80Machine B has an initial investment of $24,000 and annual cash inflows of $4,800 for five years. The cost of capital is 9%.We need to first calculate the present value factor for 5 years at 9%. Present value factor for 5 years at 9% = 1 / (1 + 9%)^5 = 0.6499.Now we can calculate the present value of cash inflows for Machine B:Present value of cash inflows = $4,800 x 0.6499 + $4,800 x 0.5933 + $4,800 x 0.5430 + $4,800 x 0.4972 + $4,800 x 0.4545 = $18,918.18NPV of Machine B = -$24,000 + $18,918.18 = -$5,081.82. NPV stands for Net Present Value which is used to measure the profitability of an investment. If the NPV is positive then the investment is profitable and if the NPV is negative then the investment is not profitable.The above question requires the calculation of the NPV for two machines i.e. Machine A and Machine B.The solution has been explained using the formula for NPV and all the calculations have been carried out systematically.
Both the machines have different initial investments and cash inflows which is why their NPV values are different as well. NPV of Machine A is -$9,470.80 and NPV of Machine B is -$5,081.82. Both the values are negative which means that both the machines are not profitable in the long run. They will cause losses to the company.The final answer should be written in a proper format and include all the necessary steps.
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27 Skipped eBook Lexi Company budgets unit sales of 1,190,000 in April, 1,280,000 in May, 270,000 in June, and 1,660,000 in July. Beginning inventory on April 1 is 238,000 units, and the company wants
The required production in May is 674,000 units.Given that Lexi Company budgets unit sales of 1,190,000 in April, 1,280,000 in May, 270,000 in June, and 1,660,000 in July. Beginning inventory on April 1 is 238,000 units, and the company wants to maintain an ending inventory equal to 60% of the next month's budgeted unit sales.
We are to determine the required production in units for April and May respectively.Let the required production in units for April be xApril sales are 1,190,000 units. Since the beginning inventory on April 1 is 238,000 units, the company will have to produce more units to have 60% of the next month's budgeted sales in inventory.
Thus, the required ending inventory on April 30 is 1,280,000 × 60% = 768,000 unitsHence, the required production in April will be:
Beginning inventory on April 1 + Production - Sales = Ending inventory on April 30.238,000 + x - 1,190,000 = 768,000x = 1,122,000 unitsThus, the required production in April is 1,122,000 units.
For May, the beginning inventory is the ending inventory for April, which is 768,000 units. Also, since the company wants to maintain an ending inventory equal to 60% of the next month's budgeted unit sales, the required ending inventory on May 31 will be 270,000 × 60% = 162,000 units.
Hence, the required production in May will be:Beginning inventory on May 1 + Production - Sales = Ending inventory on May 31.768,000 + y - 1,280,000 = 162,000y = 674,000. Thus, the required production in May is 674,000 units.
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Answer each of the following questions as either true or false. For a statement to be "true," it must always be true. If there is at least one case where the statement is not true (or if you need more information to be sure), answer "false." You must justify each answer with an appropriate explanation or counterexample (which may include a relevant diagram). (a) (4) A perfectly competitive firm has marginal function MC(q) = 4+6q, ces an output price of p= $26, and chooses to produce q- 4 units. In order to maximize profits, this firm would increase output. (b) (4) Consider two firms, Airbus and Boeing, with the following two production functions: f(L,K) = min{L, K) and f(L, K) = [min{L, K}]. For example, if Boeing hires four workers and four pieces of capital, the firm would be able to produce two airplanes as opposed to Airbus' four with the same inputs. If both firms face the same inputs costs (wage w and rental rate r), then the ratio of capital to labor (K/L) that each firm uses will be the same. (c) (4) Heather consumes running shoes and packs of energy gel. If energy gel is an inferior good. and becomes more expensive, then the income effect of that price change would induce Heather to consume more energy gel. (d) (4) A firm can make widgets using capital and labor according to the production function f(K, L) 100L+0.5K. Denote the wage w and the rental rate on capital r. If r is suffi- ciently high, the firm will not hire any capital, no matter how many widgets it wants to produce.
(a) The given statement "In order to maximize profits, this firm would increase output" is False.
(b) The given statement "If both firms face the same inputs costs (wage w and rental rate r), then the ratio of capital to labor (K/L) that each firm uses will be the same" is True.
(c) The given statement "If energy gel is an inferior good. and becomes more expensive, then the income effect of that price change would induce Heather to consume more energy gel" is False.
(d) The given statement "If r is suffi- ciently high, the firm will not hire any capital, no matter how many widgets it wants to produce" is True.
(a) False. In a perfectly competitive firm, the profit-maximizing condition is to produce the quantity where marginal cost (MC) equals the market price (p). In this case, MC(q) = 4 + 6q and the firm produces q = 4 units. If the firm wants to maximize profits, it would need to compare the marginal cost at q = 4 to the price of $26. If MC(q=4) is greater than $26, the firm should decrease output, not increase it.
(b) True. The production functions for Airbus and Boeing are given as f(L, K) = min{L, K} and f(L, K) = [min{L, K}], respectively. If both firms face the same input costs (wage w and rental rate r), they would aim to minimize the use of inputs to produce the desired output. Therefore, the ratio of capital to labor (K/L) would be the same for both firms.
(c) False. If energy gel is an inferior good, it means that as Heather's income increases, she would consume less of it. If the price of energy gel becomes more expensive, the income effect would induce Heather to reduce her consumption of energy gel, not increase it.
(d) True. The firm's production function is f(K, L) = 100L + 0.5K. If the rental rate on capital (r) is sufficiently high, it would make the cost of using capital more expensive. In this case, the firm may find it more cost-effective to rely solely on labor (L) for production and not hire any capital (K), regardless of the desired quantity of widgets to produce.
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Complete the capital budgeting template and the requirements
listed in the instructions
Input variables Number of trucks Discount rate Sale Multiple Cost variables Property tax (base) Property tax growth Maintenance expenses (base) Maintenance expense growth Truck Rental Base Case Base r
To complete a capital budgeting template for a rental company, there are several requirements that need to be addressed. The template should include essential elements such as projected cash flows, initial investment costs, salvage value and the expected useful life of the rental assets.
How can we complete the capital budgeting template and the requirements for rental company?A capital budgeting template serves as a tool for evaluating potential investment projects. For a rental company, the template should include key information such as projected cash flows which involve estimating the revenue generated by renting out assets and the corresponding expenses.
This analysis allows you to assess the profitability of the investment over time. In addition, the template should account for the initial investment costs required to acquire the rental assets. This includes the purchase or lease costs of the assets, as well as any expenses related to refurbishment or customization.
By addressing these requirements within the capital budgeting template, a rental company can effectively evaluate investment opportunities and make informed decisions that align with its financial objectives.
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Dodo's Used Cars uses the specific identification method of costing inventory. During March, Dodo purchased three cars for $8,000, $10,000, and $13,000, respectively. During March, two cars are sold for $11,000 each. Dodo determines that at March 31, the $13,000 car is still on hand. What is Dodo's gross profit for March? Select one: a. $4,000. b. $3,000. c. no correct answer d. $9,000. e. $1,000. 00
Dodo's gross profit for March is b. $3,000.
Dodo's gross profit for March can be calculated by subtracting the cost of goods sold from the total sales. In this case, two cars were sold for $11,000 each, resulting in total sales of $22,000. The cost of goods sold can be determined by adding up the costs of the cars that were sold, which amounts to $8,000 + $10,000 = $18,000. Therefore, the gross profit for March is $22,000 - $18,000 = $4,000.
However, it's important to note that the question states that the $13,000 car is still on hand at the end of March. This means that it should not be included in the cost of goods sold calculation. Therefore, the correct gross profit for March is $4,000 - $13,000 = $3,000. Option b is the correct answer.
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I am craving for pizza and fish tacos. I have 20 dollars in hand. The price of a pizza slice (P) 4 dollars while that of one fish taco (T) is 5 dollars. Derive my budget constraint.
10T+8P=20
4P+5T=20
4P+4T=20
5P+5T=20
The budget constraint can be expressed as follows:4P + 5T = 20
This equation shows the different combinations of pizza slices (P) and fish tacos (T) that can be bought with $20. The slope of this line is -4/5, which means that for every 5 fish tacos you buy, you have to give up 4 pizza slices and vice versa.
To derive the budget constraint, you need to find the different combinations of pizza slices and fish tacos that you can buy with $20. You can represent the number of pizza slices as P and the number of fish tacos as T.
The intercepts of this line are as follows:To find the intercept on the P-axis, set T = 0:
4P + 5(0) = 204
P = 20
P = 5
To find the intercept on the T-axis, set P = 0:
4(0) + 5T = 205
T = 20
T = 4
Therefore, the budget constraint is:4P + 5T = 20.
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Explain the impact of inflation in the host country on a foreign subsidiary's net present value (NPV) analysis
Explain two (2) ways that multi-national companies (MNCs) can do to minimize the impact of exchange
rate swings on their foreign projects.
Impact of inflation on a foreign subsidiary's NPV analysis is Inflation in the host country has an adverse effect on the foreign subsidiary's NPV analysis.
The cash flows from the foreign subsidiary may be reduced, which may also decrease the present value of future cash flows.Two ways that multi-national companies (MNCs) can do to minimize the impact of exchange rate swings on their foreign projects are as follows:
1. HedgingUsing a variety of derivatives to protect against future price movements in the foreign currency is referred to as hedging. MNCs utilize this technique to protect themselves against the adverse impact of currency fluctuations on their overseas projects.
2. Leading and laggingLeading is the process of speeding up the inflows and outflows of funds in a foreign currency. When a company expects its domestic currency to weaken in the future, this is known as leading. Lagging, on the other hand, involves delaying the inflows and outflows of funds in a foreign currency. When a company anticipates that its domestic currency will strengthen in the future, it uses this approach.
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Question 54 Jim, a sole trader, has two items of trading stock on hand at the end of the income year - Item A and Item B. The items have the following values under the three alternative valuation meth
In the field of accounting, there are different ways that businesses can choose to value their trading stocks at the end of the year. Three of the most common methods are First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and Weighted Average Cost (WAC).
Jim, a sole trader, has two items of trading stock on hand at the end of the income year - Item A and Item B. The items have the following values under the three alternative valuation methods:FIFO:LIFO:WAC:Jim needs to choose which method he will use to value his trading stock at the end of the year.
He will need to take into account various factors such as the nature of his business and the specific characteristics of his trading stock.Each of the three valuation methods has its own advantages and disadvantages. For example, the FIFO method tends to produce higher profits and lower taxes in a period of rising prices, while the LIFO method does the opposite.
The WAC method produces results somewhere in between the FIFO and LIFO methods, but it can be more complex to calculate.In conclusion, choosing the right method to value trading stock is an important decision for any business. Jim will need to carefully consider his options and weigh up the pros and cons of each method before making a decision.
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Life Cycle Metal Recycling and Salvage receives the opportunity to salvage scrap metal and other materials from an oid industrial. The curent owners of the she will sign over the site to Life Cycle at
Life Cycle Metal Recycling and Salvage receives the opportunity to salvage scrap metal and other materials from an old industrial site. The current owners of the site will sign it over to Life Cycle at the end of the year. The metal recycling company's next step will be to conduct a site assessment and cleanup before beginning the salvage process.
The site assessment will be conducted to evaluate the site and determine the level of contamination, if any, and the necessary remediation methods. After that, the cleanup process will be initiated, which will involve the removal of hazardous materials, debris, and other waste. After the site has been thoroughly cleaned, the salvage process will begin. Life Cycle will use heavy equipment, such as cranes and bulldozers, to dismantle and sort the scrap metal. The metal will then be transported to the recycling facility, where it will be melted down and formed into new products.The benefits of recycling metal are numerous.
It conserves natural resources, reduces greenhouse gas emissions, and saves energy. According to the Environmental Protection Agency (EPA), recycling one ton of steel conserves 2,500 pounds of iron ore, 1,400 pounds of coal, and 120 pounds of limestone. Furthermore, recycling metal reduces the amount of waste in landfills and the need for new landfills. In addition, it reduces the amount of water pollution caused by mining and the amount of air pollution caused by the production of new metal products. Overall, recycling metal is a sustainable and environmentally friendly practice that helps conserve natural resources and protect the environment.
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The demand and supply model can explain the existing levels of
prices, wages, and rates of return. Demand and supply can also be
used to explain how economic events will cause changes in prices,
wages
The demand and supply model explains current price levels, wages, and rates of return, as well as how economic events affect changes in prices and wages.
The demand and supply model analyzes the interaction between buyers and sellers in a market. It shows that prices, wages, and rates of return are determined by the balance between demand and supply. When demand exceeds supply, prices and wages tend to increase. Conversely, when supply exceeds demand, prices and wages tend to decrease.
Moreover, the model helps explain how economic events impact prices and wages. Changes in consumer income or production costs can shift demand or supply curves, leading to corresponding changes in prices and wages. For example, an increase in consumer income can raise demand, resulting in higher prices and potentially increased wages.
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Consider the following information for a business. Sales 1,000,000 pounds Cost of sales 250,000 pounds Operating expenses180,000 pounds Tax 40,000 pounds What is the net profit margin of the business? Select one a) 57 percent b) 71 percent c) 53 percent d) 75 percent Part 2: Consider the following information for a business: Bank 75,000 pounds Accounts receivable 20,000 pounds Inventory 45,000 pounds NON CURRENT ASSETS Property. plant and equipment 100,000 pounds Which amount will be used when calucalating return on total assets Is it a, b, c or d) ? a) 240,000 Pounds b) 140,000 Pounds c) 100,000 Pounds d) 175,000 Pounds Part 3: The total equity amount when calculating return on equity includes all equity of the business , such as share capital and retained earnings. Is this statement true of false? Part 4: Consider the following information for a business CURRENT ASSETS Bank 60,000 pounds Accounts receivable 15,000 pounds Inventory 30,000 pounds Petty cash 1,000 pounds NON CURRENT ASSETS Property, plant and equipment 120,000 pounds CURRENT LIABILITIES Accounts payable 18,000 pounds Short-term loan 5,000 pounds NON-CURRENT LIABILITIES Mortgage 800,000 pounds What is the quick ratio of the business? Select one: a) 3.3. b) 0,15 c) 0,63 d) 4,6
1. The net profit margin of the business is 53 percent.
The correct answer to the given question is option c.
2. The amount used when calculating the return on total assets is 240,000 pounds.
The correct answer to the given question is option a.
3. The given statement "the total equity amount when calculating return on equity includes all equity of the business, such as share capital and retained earnings" is true.
4. The quick ratio of the business is approximately 3.26 which is rounded off to 3.3.
The correct answer to the given question is option a.
Part 1: To calculate the net profit margin of the business, we need to divide the net profit by the sales and multiply by 100 to express it as a percentage. The net profit is calculated by deducting the cost of sales, operating expenses, and tax from the sales.
Net profit = Sales - Cost of sales - Operating expenses - Tax
Net profit = 1,000,000 - 250,000 - 180,000 - 40,000
Net profit = 530,000 pounds
Net profit margin = (Net profit / Sales) * 100
Net profit margin = (530,000 / 1,000,000) * 100
Net profit margin = 53 percent
Therefore, the net profit margin of the business is 53 percent (Option c).
Part 2: When calculating the return on total assets, we need to consider the total assets of the business, which include both current and non-current assets. The total assets are the sum of all assets.
Total assets = Bank + Accounts receivable + Inventory + Property, plant and equipment
Total assets = 75,000 + 20,000 + 45,000 + 100,000
Total assets = 240,000 pounds
Therefore, the amount used when calculating the return on total assets is 240,000 pounds (Option a).
Part 3: The statement that the total equity amount when calculating return on equity includes all equity of the business, such as share capital and retained earnings, is true. Return on equity (ROE) measures the profitability of a business in relation to its total equity, which includes the investment by shareholders and the accumulated earnings.
Part 4: The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term liabilities using its most liquid assets. It is computed by dividing the total amount of cash, accounts receivable, and marketable securities by the total amount of current obligations.
Quick ratio = (Cash + Accounts receivable + Marketable securities) / Current liabilities
Quick ratio = (60,000 + 15,000 + 0) / (18,000 + 5,000)
Quick ratio = 75,000 / 23,000
Quick ratio ≈ 3.26
Therefore, the quick ratio of the business is approximately 3.26 (Option a).
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journalize the transactions
The following are transactions of Rene Belinario for the month
of December 2019:
December 9 Returned goods to J. Payapag, ₱50,000 because of factory
defects. J. Payapag i
Journalizing transactions involves recording a transaction in the accounting journal. The accounting journal is also known as the book of original entry. It is a book in which transactions are first recorded before they are transferred to the ledger. In this case, we are to journalize the transactions of Rene Belinario for December 2019. We'll start with the transaction of December 9. Transaction: Returned goods to J. Payapag, ₱50,000 because of factory defects. Accounting journal: Debit Credit December 9Inventory 50,000A ccounts payable50,000
Rene Belinario returned goods to J. Payapag because of factory defects. The goods returned were valued at ₱50,000. The journal entry for this transaction will, therefore, involve a credit entry to the accounts payable account, which represents the amount owed to J. Payapag and a debit entry to the inventory account, which represents the value of the goods returned. The complete journal entry is shown above.
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