Answer & Explanation: Collaborative research refers to a research or study done by different independent bodies. Take for instance a scientist intends to undertake a study, he sorts the collaboration of a university.
Several benefits exist in collaborative research some of which includes;
1). It creates opportunity for an individual to develop as a scholarly author. This is because in working together the work gets more attention and recognition.
2). It makes the work to be done reduced. Considering the fact that people will handle different aspects of the research, the work per person will be less.
3). There will be variety of techniques. Having people work on same research enhances the research as different techniques are bound to be used to achieve result.
4). It gives room for more creativity. Because of the increased number of people working on the same tasks, diverse ideas will be brought forward, there will be knowledge sharing and this in turn will improve the creativity.
You have just turned 30 years old, have just received your MBA, and have accepted your first job. Now you must decide how much money to put into your retirement plan. You are required to specify a fixed percentage of your salary that you want to contribute. Assume that your starting salary is $ 70 comma 000 per year and it will grow 1.8 % per year until you retire. Every dollar in the plan earns 6.5 % per year. You cannot make withdrawals until you retire on your sixty-fifth birthday. After that point, you can make withdrawals as you see fit. You decide that you will plan to live to 100 and work until you turn 65. You estimate that to live comfortably in retirement, you will need $ 97 comma 000 per year starting at the end of the first year of retirement and ending on your 100th birthday. What percentage of your income do you need to contribute to the plan every year to fund your retirement income?
Answer:
Find attached
Explanation:
The present value of $97,000 per year after retirement for 35 years is computed thus:
=-pv(rate,nper,pmt,fv)
rate is the plan rate of return of 6.5%
nper is 35 years(years after retirement)
pmt is the amount required per year
fv is not applicable is taken as zero
=-pv(6.5%,35,97000,0)=$1,327,634.80
The amount needed in the account at retirement is the future value of the plan.
Regular yearly payment into the plan is =pmt
=pmt(rate,nper,-pv,fv)
=-pmt(6.5%,35,0,1327634.80)=$ 10,703.74
The percentage of income that must be contributed is found in the attached
After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. The company has 430,000 shares outstanding, and the stock currently sells for $51, If there are four seats in the current election, how much will it cost you to buy a seat
Answer:
$4,386,051
Explanation:
For computation of cost to buy a seat first we need to follow some steps which is shown below:-
Step 1 :
Number of seats available for election = 4
So, the percentage of stock needed = 1 ÷ (4 + 1)
= 20%
Step 2
Number of Stock needed = (Outstanding shares × Percentage of stock) + 1
= (430,000 × 20%) + 1
= 86,000 + 1
= 86,001
and finally
Total cost required to buy a seat = Number of Stock × Stock Currently Sold
= 86,001 × $51
= $4,386,051
So, we have applied the above formula.
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows:
110 Cash $ 83,600
112 Accounts Receivable 233,900
115 Merchandise Inventory 624,400
116 Estimated Returns Inventory 28,000
117 Prepaid Insurance 16,800
118 Store Supplies 11,400
123 Store Equipment 569,500
124 Accumulated Depreciation-Store Equipment 56,700
210 Accounts Payable 96,600
211 Salaries Payable ---
212 Customers Refunds Payable 50,000
310 Common Stock 100,000
311 Retained Earnings 585,300
312 Dividends 135,000
313 Income Summary ----
410 Sales 5,069,000
510 Cost of Merchandise Sold 2,823,000
520 Sales Salaries Expense 664,800
521 Advertising Expense 281,000
522 Depreciation Expense ---
523 Store Supplies Expense ---
529 Miscellaneous Selling Expense 12,600
530 Office Salaries Expense 382,100
531 Rent Expense 83,700
532 Insurance Expense ---
539 Miscellaneous Administrative Expense 7,800
During May, the last month of the fiscal year, the following transactions were completed:
May
1 Paid rent for May, $5,000.
3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
4 Paid freight on purchase of May 3, $600.
6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.
7 Received $22,300 cash from Halstad Co. on account.
10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.
13 Paid for merchandise purchased on May 3.
15 Paid advertising expense for last half of May, $11,000.
16 Received cash from sale of May 6.
19 Purchased merchandise for cash, $18,700.
19 Paid $33,450 to Buttons Co. on account.
20 Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000.
20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,0000. The cost of the merchandise sold was $70,000.
21 For the convenience of Cresecent Co., paid freight on sale of May 20, $2,300.
21 Received $42,900 cash from Gee Co. on account.
21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.
24 Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.
26 Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.
28 Paid sales salaries of $56,000 and office salaries of $29,000.
29 Purchased store supplies for cash, $2,400.
30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.
30 Received cash from sale of May 20 plus freight paid on May 21.
31 Paid for purchase of May 21, less return of May 24.
Required:
Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account.
Enter May 1 in the date column. Write Balance in the item section, and place a check mark (?) in the Posting Reference column.
Answer:
1 Paid rent for May, $5,000.
Dr Rent expense 5,000
Cr Cash 5,000
3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
Dr Merchandise inventory 36,000
Cr Accounts payable 36,000
4 Paid freight on purchase of May 3, $600.
Dr Merchandise inventory 600
Cr Cash 600
6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.
Dr Accounts receivable 68,500
Cr Sales revenue 68,500
Dr Cost of Merchandise Sold 41,000
Cr Merchandise inventory 41,000
7 Received $22,300 cash from Halstad Co. on account.
Dr Cash 22,300
Cr Accounts receivable 22,300
10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.
Dr Cash 54,000
Cr Sales revenue 54,000
Dr Cost of Merchandise Sold 32,000
Cr Merchandise inventory 32,000
13 Paid for merchandise purchased on May 3.
Dr Accounts payable 36,000
Cr Cash 36,000
15 Paid advertising expense for last half of May, $11,000.
Dr Advertising expense 11,000
Cr Cash 11,000
16 Received cash from sale of May 6.
Dr Cash 67,130
Dr Sales discounts 1,370
Cr Accounts receivable 68,500
19 Purchased merchandise for cash, $18,700.
Dr Merchandise inventory 18,700
Cr Cash 18,700
19 Paid $33,450 to Buttons Co. on account.
Dr Accounts payable 33,450
Cr Cash 33,450
20 Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000.
Dr Sales revenue 13,230
Cr Cash 13,230
Dr Merchandise inventory 8,000
Cr Cost of Merchandise Sold 8,000
20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,0000. The cost of the merchandise sold was $70,000.
Dr Accounts receivbale 110,000
Cr Sales revenue 110,000
Dr Cost of Merchandise Sold 70,000
Cr Merchandise inventory 70,000
21 For the convenience of Cresecent Co., paid freight on sale of May 20, $2,300.
Dr Accounts receivable 2,300
Cr Cash 2,300
21 Received $42,900 cash from Gee Co. on account.
Dr Cash 42,900
Cr Accounts receivable 42,900
21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.
Dr Merchandise inventory 88,000
Cr Accounts payable 88,000
24 Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.
Dr Accounts payable 5,000
Cr Merchandise inventory 5,000
26 Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.
Dr Sales revenue 7,500
Cr Cash 7,500
Dr Merchandise inventory 4,800
Cr Cost of Merchandise Sold 4,800
28 Paid sales salaries of $56,000 and office salaries of $29,000.
Dr Wages expense 85,000
Cr Cash 85,000
29 Purchased store supplies for cash, $2,400.
Dr Supplies 2,400
Cr Cash 2,400
30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.
Dr Accounts receivable 78,750
Cr Sales revenue 78,750
Dr Cost of Merchandise Sold 47,000
Cr Merchandise inventory 47,000
30 Received cash from sale of May 20 plus freight paid on May 21.
Dr Cash 110,100
Dr Sales discounts 2,200
Cr Accounts receivable 112,300
31 Paid for purchase of May 21, less return of May 24.
Dr Accounts payable 83,000
Cr Cash 82,170
Cr Purchase discounts 830
I prepared a general ledger for May in an excel spreadsheet that I attached.
Pennewell Publishing Inc. (PP) is a zero growth company. It currently has zero debt and its earnings before interest and taxes (EBIT) are $80,000. PP's current cost of equity is 10%, and its tax rate is 40%. The firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. Refer to the data for Pennewell Publishing Inc. (PP). Assume that PP is considering changing from its original capital structure to a new capital structure with 35% debt and 65% equity. This results in a weighted average cost of capital equal to 9.4% and a new value of operations of $510,638. Assume PP raises $178,723 in new debt and purchases T-bills to hold until it makes the stock repurchase. PP then sells the T-bills and uses the proceeds to repurchase stock. How many shares remain after the repurchase, and what is the stock price per share immediately after the repurchase?
Answer:
Price per share after repurchase = $51.064
Shares remaining after repurchase = 6500
Explanation:
Given the following :
Value of operations = $510,638
Value of T-bills = value of debt = $178,723
Therefore, value of equity = $510,638
Number of common shares = 10,000
Price per share = Value of equity / Number of shares
Price per share = $510,638 / 10,000 = $51.064
Price per share prior to repurchase is the same as price per share after repurchase.
However, number of shares repurchased equals;
$178,723 / $51.064 = 3499.99 = 3500 shares
Number of shares left after repurchase :
Totals shares - shares repurchased
10,000 - 3500 = 6,500
The WorldLight Company produces two light fixtures (products 1 and 2) that require both metal frame parts and electrical components. Management wants to determine how many units of each product to produce so as to maximize profit. For each unit of product 1, 1 unitof frame parts and 2 units of electrical components are required. For each unit of product 2, 3 units of frame parts and 2 units of electrical components are required. The company has 200 units of frame parts and 300 units of electrical components. Each unit of product 1 gives a profit of $2, and each unit of product 2, up to 70 units, gives a profit of $4. Any excess over 60 units of product 2 brings no profit, so such an excess has been ruled out. Formulate a linear programming model for this problem. Use the graphical method to solve this model. What is the resulting total profit?
Answer:
Explanation:
a) x1 = number of unit product 1 to produce , and
x2 number of unit product 2 to produce
A linear program that will maximize world light profit is the following
maximize [tex]x_1+2x_2[/tex] subject to [tex]x_1+3x_2\leq 200[/tex]
[tex]2x_1+2x_2\leq 300\\\\x_2\leq 60\\\\x_1\geq 0\\\\x_2\geq 0[/tex]
Unit 1 is used both in products in 1 : 3 ratio which can be a maximum of 200 unit 2 is used in 2 : 2 ratio which can be maximum of 300
So, this can be written as the inequations
Profit functio is p = 0ne dollar on product A and two dollar on product B
= x + 2y
Now , we find a feasible area whose extremeties will give the maximum profit for, the graph is ( see attached file )
So on the graph, we can get the other extremeties of the shaded regional so which will not give maximum profit ,
Thus , the maximum possible profit is
p = ($1 * 125) + ($2 * 25)
= $175
Total profit according to graph function is $175.
Profit function based problem:Given that;
Number of unit product 1 to produce = x1
Number of unit product 2 to produce = x2
Computation:
The following is a linear algorithm that will maximize global light profit.
x1 + 2x2 and x1 + 3x2 ≤ 200
2x1 + 2x2 ≤ 300
x2 ≤ 60
x1 ≥ 0
x2 ≥ 0
Unit 1 is used in both products in a 1: 3 ratio with a maximum of 200 units, while Unit 2 is used in a 2: 2 ratio with a maximum of 300 units.
As a result, this may be stated as inequations.
p = one dollar on product A and two dollars on product B = x + 2y is the profit function.
So,
p = ($1 × 125) + ($2 × 25)
P = 125 + 50
Profit = $175
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Timm Inc., a calendar year, accrual basis taxpayer, is being sued by a customer who was injured when she tripped over a loose carpet in Timm's retail store. Timm's auditors required the corporation to accrue a $500,000 contingent liability and current year expense. Which of the following statements is true?
a. Timm can deduct the $500,000 accrued expense.
b. Timm can never deduct the $500,000 expense.
c. Timm can deduct the expense in the year in which the liability becomes fixed and determinable.
d. Timm can deduct the expense in the year of payment.
Answer: d. Timm can deduct the expense in the year of payment.
Explanation:
A Contingent Liability refers to a liability that a company MIGHT incur if a future event happens. It is mostly often used for law suits in case a company has to pay damages. They will thus accrue the expense in readiness to pay it off should the need ever arise.
While Timm will record it in the books, there is no need to deduct it from the income yet. Timm should wait until the year they will have to pay to deduct it. That way the expense will be correctly apportioned to it's corresponding period.
Describe the procedure of preparing vision and mission statement of an organisation
Tharaldson Corporation makes a product with the following standard costs:
Standard Quantity Standard Price Standard Cost
or Hours or Rate Per Unit
Direct materials 7.7 ounces $ 2.00 per ounce $ 15.40
Direct labor 0.8 hours $ 11.00 per hour $ 8.80
Variable overhead 0.8 hours $ 4.00 per hour $ 3.20
The company reported the following results concerning this product in June.
Originally budgeted output 3,100 units
Actual output 2,500 units
Raw materials used in production 22,300 ounces
Purchases of raw materials 23,400 ounces
Actual direct labor-hours 3,600 hours
Actual cost of raw materials purchases $ 45,100
Actual direct labor cost $ 13,100
Actual variable overhead cost $ 3,550
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for June is:_________.
Garrison 16e Rechecks 2017-10-31
Answer:
Direct material price variance= $1,638 favorable
Explanation:
Giving the following information:
Direct materials 7.7 ounces $ 2.00 per ounce $ 15.40
Purchases of raw materials 23,400 ounces
Actual cost of raw materials purchases $ 45,100
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Actual price= 45,100/23,400= $1.93
Direct material price variance= (2 - 1.93)*23,400
Direct material price variance= $1,638 favorable
In January the price of dark chocolate candy bars was $2.00, and Aji’s Chocolate Factory produced 80 pounds. In February the price of dark chocolate candy bars was $2.50, and Aji’s Factory produced 110 pounds. In March the price of dark chocolate candy bars was $3.00, and Aji’s Factory produced 140 pounds.a. Calculate the price elasticity of supply for Aji's Chocolate Factory in February b. Calculate the price elasticity of supply for Aji's Chocolate Factory in March c. If Aji's Factory is nearly at full capacity of production in March, what will happen to Aji's Factory price elasticity of supply in April?
Answer:
a. Calculate the price elasticity of supply for Aji's Chocolate Factory in February
1.5 elasticb. Calculate the price elasticity of supply for Aji's Chocolate Factory in March
1.36 elasticc. If Aji's Factory is nearly at full capacity of production in March, what will happen to Aji's Factory price elasticity of supply in April?
If the company is producing at full capacity, then its price elasticity of supply will be perfectly inelastic even if the price increases. This is because any increase in price will not affect the quantity supplied because the company cannot increase it even if they wanted to.Explanation:
price elasticity of supply = % change in quantity supplied / % change in price
It measures the proportional change in the quantity supplied that producers will make given a 1% change in the price of their product.
PES February = [(110 - 80)/80] / [(2.5 - 2)/2] = 0.375 / 0.25 = 1.5
PES March = [(140 - 110)/110] / [(3 - 2.5)/2.5] = 0.273 / 0.2 = 1.36
A worker can choose high (H) or low (L) effort. If the worker chooses high effort, she incurs a personal cost of 1. In this case, output is high with probability one. If the worker chooses low effort, she incurs a personal cost of 0. In this case, output is low with probability one. When output is high, the firm receives revenue of O and zero otherwise. Can the same outcome be achieved when effort is unobservable?
A. Yes, because the firm would find it wothwhile to pay the bonus for high effort.
B. No, because for any bonus offered, the worker will claim to have exerted high effort.
C. No, because the firm has to pay the bonus based on output.
D. Yes, because effort can be perfectly inferred from output, which is observable.
Answer:
B. No, because for any bonus offered, the worker will claim to have exerted high effort.
Explanation:
This question required some basic reasoning about how human beings function. We all like to receive things from others, and if they are free (or without cost or effort) the more we like them. And we all believe that good things should happen to us and that we are entitled to receive good things. That is the basic reason why jealousy and envy exist.
Now, back to our case. If the company simply hands out bonuses to everyone regardless of their personal effort, every single worker will be convinced that they really deserve the bonus. Even if the worker didn't even try to do his best or didn't do anything right at all, he/she will be convinced that they deserve the bonus. Each and every single worker will claim that the reason they are receiving the bonus is due to their work. Everyone will say that they worked hard and their work was good.
Imagine this happened at school. One day, the teacher decides to give As to half the class in alphabetical order (or any other random way). The half that got the As will believe that they deserved the As while the other half will be very unhappy. If everyone got As, then everyone will be convinced that thy got As because they deserved them.
Adams operates his $57500 firm using his own equity. Bob operates his firm with $28750 of his own money plus $28750 of debt at a cost of 5 percent interest. Calculate Adams's and Bob's return on equity if their respective businesses produce earnings before interest and tax of $7000. Assume perfect markets.
Answer:
Adam return on equity is 12.1%. while Bob return on equity is 19.3%
Explanation:
Given that:
Now,
For Adam:
Earnings before interest and taxes (EBIT) = Net income + Interest + Taxes
EBIT = $7000
The equity of shareholders = $57500
The number of debt by which Adams shows no interest expense and no tax expense as perfect market presumed is stated s follows:
ROE = Net income /Average Shareholder Equity
=$7000/$57500
=0.121739
Therefore, Adam return on equity is 12.1%
For Bob
The equity of shareholders = $28750
The expense (interest) = Debt * Interest rate
=$28750 * 0.05
= 1437.5
Thus
Net income = EBIT - Interest
= 7000 -1437.5
=5562.5
Now,
ROE = Net income /Average Shareholder Equity
=5562.5 /$28750
= 0.19347
=19.3%
Therefore, Bob return on equity is 19.3%
The following information is from the records of Pangolin Camera Shop: Bad expense is estimated by the aging-of-receivables method. Management estimates that $2,950 of accounts receivable will be uncollectible. Calculate the amount of net accounts receivable after the adjustment for bad debts. Supporting Materials / Group of answer choices $22,950 $22,050 $21,150 $20,800
Answer:
$22,050
Explanation:
The computation of the net account receivable after the adjustment of bad debt is shown below:
As we know that
Net account receivable = Account receivable - bad debt expense
= $25,000 - $2,950
= $22,050
By deducting the bad debt expense from the account receivable we can get the net account receivable and the same is to be considered
hence, the correct option is B.
Lindley Enterprises sells hand-woven rugs. Paige Corporation is a regular customer of Lindley. On June 30, Paige purchased 500 rugs from Lindley for $400,000 on credit. On August 15, Paige paid Lindley in full on its $400,000 balance. Required: Prepare the related journal entries for Lindley.
Answer:
Sales on June 30:
Dr accounts receivable $400,000
Cr sales revenue $400,000
On August 15:
Dr cash $400,000
Cr accounts receivable $400,000
Explanation:
On June 30 when Lindley Enterprises sold 500 rugs worth $400,000 to Paige Corporation ,Lindley would have to recognize sales of $400,000 since the rugs have been transferred to Paige Corporation by crediting sales revenue and debiting accounts receivable with $400,000.
On August 15,Lindley would have received cash of $400,000 in respect of their earlier sales,hence accounts receivable should be credited while cash account is debited
Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $80,000; May, $110,000; and June, $120,000. Payments are made as follows: 70 % in the month of purchase and 30 % in the month after purchase. The March 31 balance of accounts payable is $22,000 Prepare a schedule of budgeted cash payments for April, May, and June.
April May June
Current month purchases 70%
Ending accounts payable 30 %
Total purchases
ZISK CO.
Schedule of Cash Payments For April, May, and June
Аpril May June
Cash payments for
Current month purchases
Prior month purchases
Budgeted cash payments for materials
Answer:
Results are below.
Explanation:
Giving the following information:
Budgeted purchase:
April= $80,000
May= $110,000
June= $120,000.
Payments are made as follows:
70% in the month of purchase and 30% in the month after purchase.
The March 31 balance of accounts payable is $22,000
April:
Purchase from April= 80,000*0.7= 56,000
From previous month= 22,000
Total cash= 78,000
May:
Purchase from May= 110,000*0.7= 77,000
From previous month= 80,000*0.3= 24,000
Total cash= 101,000
June:
Purchase from June= 120,000*0.7= 84,000
From previous month= 110,000*0.3= 33,000
Total cash= 117,000
Murphy Printers (MP) manufactures printers. Assume that MP recently paid $ 500 comma 000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only eight years.
Requirements
1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year.
2. After using the patent for four years, MP learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new information, MP decides, starting with year 5, to amortize the remaining cost of the patent over two remaining years, giving the patent a total useful life of six years. Record amortization for year 5.
Answer: The answer is given below
Explanation:
1. The journal entries to record the purchase of the patent and the amortization for the first full year has been solved and attached.
2. The amortization expense of he 4 years will be:
= $62500 × 4
= $250,000
Therefore, the book value of the patent will be:
= Cost of the patent - amortization expense
= 500,000 - 250,000
= $250,000
Amortization for year 5 = Book value/Estimated useful life remaining
= 250,000/2
= $125,000
The journal for the amortization expense for year 5 has been attached
Arizona Crystal is a distributor of feldspar, amethyst and other mystically powerful types of crystals. The owner of Arizona Crystal, Geri Moonbeam, is proud to be a part of the movement that is contributing to the higher spirituality of the world. Geri buys crystals from local collectors and then ships them out to wholesalers throughout the country. Geri pays cash for the crystals, but she extends credit to the wholesalers. As the business has grown, problems have arisen. When Geri buys more crystals than she can sell, inventory increases and cash flow problems arise. When Geri doesn’t buy enough crystals, then she can’t fill orders and that creates problems with her customers. She needs to base her buying decisions on accurate forecasts of the demand for crystals so she can avoid these problems. After consulting her tarot cards, Geri visits a friend from El Paso, Texas, who channels for a Wall Street tycoon who didn’t survive the crash of 1929. He recommends that, since she only has twelve months of data, she should try using a moving average or exponential smoothing forecasting model. So Geri contacts you. She provides you with data on the number of crystals (in thousands) ordered during each of the past twelve months and asks you to help her develop a forecasting model. 8. Use a five period moving average model to forecast the demand in January of 1993. Also calculate the RMSE for this model. Use the table below to carry out your calculations. How does this model compare with the three period model? Month Demand (A) Demand (F) (A-F)2 Jan-92 25.6 Feb-92 24.7 Mar-92 21.3 Apr-92 13.9 May-92 12.6 Jun-92 18.0 Jul-92 21.5 Aug-92 22.3 Sep-92 30.7 Oct-92 15.0 Nov-92 13.8 Dec-92 22.6
Answer:
Explanation:
Month Demand (A) Demand (F) (A-F)²
Jan-92 25.6 - 0
Feb-92 24.7 - 0
Mar-92 21.3 - 0
Apr-92 13.9 - 0
May-92 12.6 19.62 49.28
Jun-92 18.0 18.1 0.01
Jul-92 21.5 17.46 16.32
Aug-92 22.3 17.66 21.53
Sep-92 30.7 21.02 93.7
Oct-92 15.0 21.5 42.25
Nov-92 13.8 20.66 47.06
Dec-92 22.6 20.88 29.58
The demand for january of 1993 is 20.88
RMSE² = 49.28+0.01+16.32+21.53+93.7+42.25+47.06+29.58
=299.73
[tex]=\frac{299.73}{12} \\\\= 24.98[/tex]
RMSE = √24.98
=4.99
The model has higher values of demand and RMSE than that of three month moving average model
abares Corporation had these transactions during 2020. Indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity. (a) Issued $50,000 par value common stock for cash. Financing Activities (b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities (c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. Noncash Investing and Financing Activities (d) Declared and paid a cash dividend of $18,000. Financing Activities (e) Sold a long-term investment with a cost of $15,000 for $15,000 cash. Investing Activities (f) Collected $16,000 from sale of goods.
Answer:
(a) Issued $50,000 par value common stock for cash = Financing Activities
b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities = Non-cash Investing and Financing Activity
(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000 = Non-cash Investing and Financing Activities
(d) Declared and paid a cash dividend of $18,000 = Financing Activities
(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash = Investing Activities
(f) Collected $16,000 from sale of goods = Operating Activities
Explanation:
The Cash flows related to raising of capital is known as Cash flow from Financing Activities.
The Cash flows related to growing and selling of Assets of the business is known as Cash flow from Investing Activities.
The Cash flow related to trade in Ordinary course business of the Company is known as Cash flow from Operating Activities.
Consider the business Dave’s Doughnuts. Which of the following is a sunk cost of this business? Group of answer choices The monthly rent Dave must pay to use a building downtown The wages Dave pays to his workers who make the doughnuts The expenses that went into research and development of a new doughnut flavor The salary that Dave could be earning elsewhere if he didn’t own the business None of the above
Answer:
The expenses that went into research and development of a new doughnut flavor
Explanation:
A sunk cost is a cost that has already been incurred and cannot be recovered. It is money that has already been spent. Sunk costs are bygone and are not to be considered when deciding whether to continue an investment project.
The expenses that went into research and development of a new doughnut flavor is a sunk cost since the cost has been incurred already and cannot be recovered because it is not a relevant cost.
"ART Company just paid a dividend of $2.00. The dividend is expected to grow by 10% this year, 9% in year two and 6% in year three. Then, beginning in year four, the dividend will begin growing at a constant rate of 4%. With a required return of 10%, what is the stock worth today
Answer:
The stock is worth $38.99 per share today
Explanation:
We can calculate the value of the stock using the dividend discount model approach (DDM). The DDM values the stock based on the present value of the expected future dividends from the stock. To calculate the price of the stock today, we simply discount back all the future expected dividends and terminal value (calculated when the growth rate in dividends become constant) to their present value using the required rate of return as the discount factor.
The value of ART company's stock today will be,
P0 or V0 = 2 * (1+0.1) / (1+0.1) + 2 * (1+0.1)*(1+0.09) / (1+0.1)^2 +
2 * (1+0.1)*(1+0.09)*(1+0.06) / (1+0.1)^3 +
[( 2 * (1+0.1)*(1+0.09)*(1+0.06)*(1+0.04)) / (0.1 - 0.04)] / (1+0.1)^3
P0 or V0 = $38.9939 rounded off to $38.99
Identify what type of unemployment each of the individuals faces. James is an architect who has been laid off owing to a slump in the demand for property. He feels he will have to wait until the economy picks up before he can get a new job. James is facing
Answer:
cyclical unemployment
Explanation:
The situation when the overall demand for goods and services cannot support full employment in an economy, it results in cyclical unemployment. It takes place during periods of slow economic growth.
In the given question,
as James will have to wait until the economy picks up before he can get a new job, he is facing cyclical unemployment.
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.4%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 14% 34% Bond fund (B) 5% 28% The correlation between the fund returns is 0.0214. What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds
Answer:
Explanation:
Expected Return stock fund ([tex]E_{rs[/tex]) = 14% = 0.14, Expected Return bond fund ([tex]E_{rb[/tex]) = 5% = 0.05, Standard Deviation stock fund ([tex]\sigma_s[/tex]) = 34% = 0.34, Standard Deviation bond fund ([tex]\sigma_b[/tex]) = 28% = 0.28, correlation (ρ) between the fund returns is 0.0214
You want to buy a house and will need to borrow $255,000. The interest rate on your loan is 5.89 percent compounded monthly and the loan is for 25 years. What are your monthly mortgage payments
Answer: $1,626
Explanation:
A Mortgage payment is a type of annuity so the Present Value of an Annuity formula can be used to calculate this.
The Period is 12 months so adjustments need to be made to the interest rate and the period.
Period.
= 25 years * 12 months
= 300
Interest Rate
= 5.89/12
= 0.4908%
Present Value of the Annuity is the mortgage amount of $255,000
Present Value of Annuity is,
P = PMT ( 1 - ( 1 + r)^-n) / r
Where,
P = Present Value
PMT = payment per period
r = Interest rate
n= no. of periods
255,000 = PMT ( 1 - (1+0.4908%)^-³⁰⁰) / 0.4908%
255,000 = 156.8456 PMT
PMT = 255,000/156.8456
= $1,625.80
= $1,626
On January 1 of the current year, Jimmy's Sandwich Company, Inc. reported stockholders' equity totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year the business paid $20,000 to the stockholders. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in stockholders' equity during the year was:
Answer:
The multiple choices are:
A decrease of $9,500.
An increase of $9,500.
An increase of $30,500.
A decrease of $30,500.
An increase of 73,500.
The correct option is a decrease of $9,500
Explanation:
The changes in stockholders' equity is in the form of the difference between inflow to stockholders and outflow to stockholders.
Inflow to stockholders is the earnings attributable to them in form of net income while outflow is the dividends paid to them.
net income=revenues-expenses=$96,000-$85,500=$10,500
Dividends were paid to the tune of $20,000
change in stockholders' equity=$10,500-$20,000=-$9,500
In essence ,the opening balance of stockholders' equity went down by $9,500 since the net income generated of $10,500 was not enough to fund dividend payment
Answer:
Explanation:a
The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously is referred to as need for organizations to improve the state of people, the planet, and profit simultaneously is referred to as
Answer:
The correct answer is: Corporate Social Responsibility (CSR).
Explanation:
To begin with, the concept known as ''Corporate Social Responsibility'' refers to a type of position adopted by the organization in order to achieve certain goals that are related to the subjects of the state of people, the health of the planet and its environment and take all that and combine it with the typically normal profit goal of every business so in that way the members of the organization can act with the purpose of achievieng all those.
Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer.Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share.Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $210,000.Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year.Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment.Ken’s son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,100.Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $12,050 in itemized deductions last year (the standard deduction for a single filer was $12,000).Ken received $30,000 of interest from corporate bonds and money market accounts.What is his gross income?
Answer:
Gross Income = 46950
Explanation:
SOURCE AMOUNT
Illegal gross income (from poker) 1200
Gain on stock sale 1000
Annuity (25000 - 210000/20) 14500
Scholarship (excess of book allowance paid, for taxable car) 200
Tax refund (tex benefit of last year) 50
Interest Income 30000
Total Gross Income 46950
Disability benefit is excluded as the policy was purchased by taxpayer. Income from son is also not included, as income is taxed to taxpayer who earned the incomehe Petteys family plans to buy a home for $224,900, and has been offered a 30-year mortgage with a rate of 5.5% if they make a 20% down payment . Calculate the down payment. (Do not include a dollar sign with your answer)
Answer:
44,980
Explanation:
20 % of $224,900 = (20/100) × $224,900 = $44,980
The May transactions of Concord Corporation were as follows. May 4 Paid $860 due for supplies previously purchased on account. 7 Performed advisory services on account for $7,490. 8 Purchased supplies for $840 on account. 9 Purchased equipment for $1,940 in cash. 17 Paid employees $500 in cash. 22 Received bill for equipment repairs of $810. 29 Paid $1,190 for 12 months of insurance policy. Coverage begins June 1. Journalize the transactions
Answer:
May 4
Debit Accounts Payable $860
Credit Bank/Cash account $860
Being entries to record payment for supplies purchased previously on Account
May 7
Debit Accounts Receivable $7,490
Credit Service revenue $7,490
Being entries to recognize service revenue made on accounts
May 8
Debit Supplies account $840
Credit Accounts Payable $840
Being entries to recognize supplies purchased on account
May 9
Debit Fixed assets account $1,940
Credit Cash account $1,940
Being entries to record equipment purchased with cash
May 17
Debit Salaries expense $500
Credit Cash account $500
Being entries to record payment of salaries
May 22
Debit Maintenance and repairs $810
Credit Accounts Payable $810
Being entries to recognize repairs expense
May 29
Debit Prepaid Insurance $1,190
Credit Cash account $1,190
Being entries to recognize advance payment for insurance
Explanation:
To purchase items on account is to purchase on credit. This creates a liability in the form of accounts payable. An increase in assets or expenses is a debit entry while a decrease is a credit entry. For liability or an income, a credit is an increase while a debit is a decrease.
Solar Innovations Corporation bought a machine at the beginning of the year at a cost of $25,000. The estimated useful life was five years and the residual value was $3,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was year 1, 2,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 2,000 units; and year 5, 1,000 units. Required: Complete a depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Which method will result in the highest net income in year 2
Answer:
The straight line depreciation will result in highest net income in year 2.
Explanation:
a. Straight Line:
( Cost - residual value ) / useful life
( $25,000 - $3,000 ) 5
Depreciation = $4,400
b. Units of production:
( cost * annual production ) / Total expected production over life
Year 1: $25,000 * 2,000 units / 10,000 units = $5,000
Year 1: $25,000 * 3,000 units / 10,000 units = $7,500
c. Double declining balance:
100% / 5 years = 20% * 2 = 40%
Year 1: $25,000 * 40% = $10,000
Year 2: $15000 * 40% = $6,000
Trendz Inc. is a leading brand of fashion clothing and accessories based in Houston. After gaining a strong foothold in the U.S., the company wants to foray into foreign markets. The management at Trends knows that people residing in other countries are likely to have different tastes and preferences, so they may have to redesign some of their offerings. Which of the following strategies is Trendz using?
A) market-penetration strategy
B) outsourcing strategy
C) geographic-expansion strategy
D) product differentiation strategy
E) ethnocentric strategy
Answer:
The correct answer is the option D: product differentiation strategy.
Explanation:
To begin with, the fact that the company knows and understand that in other countries the people may have other needs and preferences is helpful because in that way they are able to investigate and start the creation and production of a good that adjusts to the preferences of that other country and by doing that the company leaves behind the concept of standarization and focus on the differentiation of its product by making it unique in every country they are in.
A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date. On release, it has a price of $104 per $100 of face value. What is the yield to worst of this bond when it is released
Answer:
6.32%
Explanation:
This can be calculate using the YTC using the following equation:
YTC = (C + (CP - P) / t) / ((CP + P) / 2) .......................... (1)
Where:
YTC = YTW = yield to call or yield to worst = ?
C = annual coupon interest payment = bond interest rate * Bond price = 6% * $100 = $6
CP = call price of the bond = $104
P = price of the bond = $100
t = time in years remaining until the call date = 10 - 1 = 9 years
Substituting the values into equation (1), we have:
YTC = ($6 + ($104 - $100) / 9) / (($104 + $100) / 2) = 0.0632, or 6.32%