Answer:
The solution and the calculation is shown on the first , second and third image
Explanation:
Asset acquisition vs. stock acquisition (fair value is different from book value)The following financial statement information is for an investor company and an investee company on January 1, 2016. On January 1, 2016, the investor company’s common stock had a traded market value of $35 per share, and the investee company’s common stock had a traded market value of $31 per share.Book Values Fair ValuesInvestor Investee Investor InvesteeReceivables & inventories $150,000 $75,000 $135,000 $67,500Land 300,000 150,000 450,000 225,000Property & equipment 337,500 150,000 375,000 195,000Trademarks & patents — — 225,000 120,000Total assets $787,500 $375,000 $1,185,000 $607,500Liabilities $225,000 $120,000 $270,000 $142,500Common stock ($1 par) 30,000 15,000 Additional paid-in capital 420,000 225,000 Retained earnings 112,500 15,000 Total liabilities & equity $787,500 $375,000 Net assets $562,500 $255,000 $915,000 $465,000Required (Parts a. and b. are independent of each other.)a. Assume that the investor company issued 14,250 new shares of the investor company’s common stock in exchange for all of the individually identifiable assets and liabilities of the investee company. The financial information presented, above, was prepared immediately before this transaction. Provide the Investor Company’s balances (i.e., on the investor’s books, before consolidation) for the following accounts immediately following the acquisition of the investee’s net assets:Receivables & Inventories Land Property & Equipment Trademarks & Patents Investment in Investee Goodwill Total Assets Liabilities Common Stock ($1 par) Additional Paid-In Capital Retained Earnings Total Liabilities and Equity b. Assume that the investor company issued 14,250 new shares of the investor company’s common stock in exchange for all of the investee company’s common stock. The financial information presented, above, was prepared immediately before this transaction. Provide the Investor Company’s balances (i.e., on the investor’s books, before consolidation) for the following accounts immediately following the acquisition of the investee’s net assets:Receivables & Inventories Land Property & Equipment Trademarks & Patents Investment in Investee Goodwill Total Assets Liabilities Common Stock ($1 par) Additional Paid-In Capital Retained Earnings Total Liabilities and Equity
Complete Question
The complete question is shown on the first and second image
Answer:
The solution and the calculation is shown on the third , fourth and fifth image
Explanation:
If a country has a high level of income, it likely has:________.1. a highly productive work force.2. widespread access to technology.3. high levels of physical capital.4. All of these are true.0
Answer:
4
Explanation:
According to economic growth theories , economic growth can occur as a result of :
1. increase in labour
2. technological advancement
3. growth in physical theories
At which stage of defining requirements are tools for analyzing strengths, weaknesses, opportunities, and threats useful?
Answer: Interview and observe staff
Explanation:
At the interview and observe staff stage of defining requirements, the tools for analyzing strengths, weaknesses, opportunities, and threats are useful.
It should be noted that the strengths, weaknesses, opportunities, and threats which is usually referred to as SWOT analysis is simply a framework used to assessing potential and also developing strategies that'll be useful to tackle a specific problem.
Select the correct answer from each drop-down menu. _____ means ___ your portfolio and returning it to the target asset allocation in your initial investment plan. first blank- A. diversifacation B. Evaluation C. Re-balancing Second blank- A. Recreating B. Restating C.Revisiting
Answer:
Rebalancing means revisiting your portfolio and returning it to the target asset allocation in your initial investment plan.
Explanation:
Rebalancing means revisiting the portfolio and returning it to the target asset allotment in the initial investment plan. Option A is correct.
What is rebalancing in portfolio?Rebalancing is defined as an investment strategy used in finance and investing to bring a portfolio that has deviated from its target asset allocation back into line.
Rebalancing entails returning the portfolio to the target asset allocation specified in the initial investment plan.
Therefore, option A is correct.
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With an inflation rate of 9 percent, prices would double in how many years?
Answer:
8 years
Explanation:
the rule of 72 calculates how long it takes for an amount to double given interest rate
72 / 9% = 8 years
"On December 1st, an officer of REX Corporation wishes to sell stock under Rule 144. REX has 15,000,000 shares outstanding. The previous weeks' trading volumes are:"
Answer:
178,750 average shares
Explanation:
The computation of the maximum permitted sale is shown below:
But before that we need to find out the total volume which is
= nov 14 trading volume + nov 7 trading volume + oct 31 trading volume + oct 24 trading volume
= 185,000 shares + 165,000 shares + 175,000 shares + 190,000 shares
= 715,000 shares
Now
maximum permitted sale is
= 715,000 shares ÷ 4
= 178,750 average shares
Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $3,900 and sell its old washer for $1,200. The new washer will last for 6 years and save $1,100 a year in expenses. The opportunity cost of capital is 19%, and the firm’s tax rate is 21%.
a. If the firm uses straight-line depreciation over a 6-year life, what are the cash flows of the project in years 0 to 6? The new washer will have zero salvage value after 6 years, and the old washer is fully depreciated. (Negative amounts should be indicated by a minus sign.)
b. What is project NPV? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. What is NPV if the firm investment is entitled to immediate 100% bonus depreciation? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
Cashflow
Yearo zero ($2,700)
from 1st to 6th: +$1,005.5
Net Present Value: $728.53
If bonus depreciation then:
Net Present Value: $916.04
Explanation:
Cash Flow
Year zero:
-3,900 purchase of new machine
+ 1,200 sale from old machine
-2,700
Years 1 through 6:
1,100 savings x (1 - 21% tax rate) = 869.0
depreciation
3,900 / 6 = 650
tax-shield on depreciation: 650 x 21% = 136.5
total cash-flow:
869 cost savings + 136.5 lesser taxes = 1005.5
We now solve for the Net present value we discount the cashflow at 19% which is the cost of capital and compare agaisn the year zero outflow:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 1,005.50
time 6
rate 0.19
[tex]1005.5 \times \frac{1-(1+0.19)^{-6} }{0.19} = PV\\[/tex]
PV $3,428.5310
- $2,700 + $3,428.53 = $728.53
If bonus depreciation scenario:
at year 1 the entire equipment is depreciate
giving a tax shield of:
3,700 x 21%= 777
This will be discounted one year as the depreciation bonus which lowers taxes occurs at year-end:
777 / 1.19 = 652.94117647
Then, we solve for the present value of the cost savings only as the depreciations do not occur:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 869.00
time 6
rate 0.19
[tex]869 \times \frac{1-(1+0.19)^{-6} }{0.19} = PV\\[/tex]
PV $2,963.0964
So we have:
- 2,700 year zero cash outflow
+ 652.94 present value of bonus depreciation
+ 2,963.10 present value of the cost savings
916.04 net present value
Which project charter element describes what the project will include/will not include?a. Project Scope b. Preliminary Plan c. Business Case d. Problem Statement
Answer:
A
Explanation:
Compute the specified ratios using Hilda Company's balance sheet at December 31, 2011.AssetsCash $14,000Marketable securities 7,000Accounts receivable 14,000Inventory 11,000Property and equipment 170,000Accumulated depreciation (11,500)Total assets $204,500EquitiesAccounts payable $8,500Current notes payable 3,500Mortgage payable 4,500Bonds payable 23,000Common stock 105,000Retained earnings 60,000Total liabilities and stockholders' equity $204,500The average number of common stock shares outstanding during 2011 was 850 shares.Net income for the year was $15,000.Round your answer to 2 decimal places.Required:1. Compute each of the following:a) Current ratio.b) Earnings per share.c) Quick (acid-test) ratio.d) Return on investment.e) Return on equity.f) Debt to equity ratio.
Answer:
a) Current ratio.
= Current assets/ current liabilities
= ( Cash + Marketable securities+ Accounts receivable + Inventory) / (Accounts Payable + Current notes payable )
= (14,000 + 7,000 + 14,000 + 11,000) / ( 8,500 + 3,500)
= 3.83
b) Earnings per share.
= Net Income / Common stock outstanding
= 15,000 / 850
= $17.65
c) Quick (acid-test) ratio.
= (Current assets - Inventory ) / Current liabilities
= (14,000 + 7,000 + 14,000) / ( 8,500 + 3,500))
= 2.92
d) Return on investment.
= Net Income/ total assets
= 15,000 / 204,500
= 7.33%
e) Return on equity.
= Net Income / Common equity
= 15,000 / ( Common stock + retained earnings)
= 15,000 / 165,000
= 9.09%
f) Debt to equity ratio.
= Debt / Equity
= ( Accounts payable + Current notes payable + Mortgage payable + Bonds payable) / 165,000
= (8,500 + 3,500 + 4,500 + 23,000) / 165,000
= 23.94%
Dellroy Rentals Company faced the following situations. Journalize the adjusting entry needed at December 31, 2016, for each situations. Consider each fact seperately.
a. The business has interest expense of $3,200 that it must oay early in January 2017.
b. Interest revenue of $4,100 has been earned but not yet recieved.
c. On Huky 1, 2016, when the business colected $12,000 rent in advance, it debited Cash and credited Unearned Rent Revenue. The tenant was paying gor two years' rent.
d. Salary expense is $6,100 per day--Monday through friday--and the business pays employees each friday. This year, December 31 falls on a Thursday.
e. The adjusted balance of the Supplies account is $3,200. The total cost of supplies on hand is $1,300.
f. Equipment was purcashed on January 1 of this year at a cost of $180,000. The equipment's useful life is five years. There is no residual value. Record depreciation for this year and then determine the equipments book value.
Answer:
Journal entries are given below
Equipments book value = $144,000
Explanation:
We can journalize each situation by debiting the expenses, assets, and by crediting liabilities, capital, and income given in the situation.
A. To record Interest Expense Payable in January
DEBIT CREDIT
Interest Expense $3,200
Interest Payable $3,200
b. To record Interest Revenue Earned but not Received
DEBIT CREDIT
Interest Receivable $4,100
Interest Revenue $4,100
c. To recognize Unearned Rent Revenue for the Period July to December
DEBIT CREDIT
Unearned Rent Revenue $3,000
(12,000*1/2*6/12)
Rent Revenue $3,000
d. To record Salary due for 4 days from Monday to Thursday
DEBIT CREDIT
Salary Expense $24,400
(6,100*4)
Salary Payable $24,400
e. To recognize the Supplies Expense at year end
DEBIT CREDIT
Supplies Expense $1,900
(3,200 - 1,300)
Supplies $1,900
f. To record depreciation for the current year
DEBIT CREDIT
Depreciation Expense $36,000
(180,000/5)
Accumulated Depreciation $36,000
Equipments book value = Cost of Equipment - Depreciation
Equipments book value = 180,000 - 36,000
Equipments book value = $144,000
Can company keep their western value and do business in saudi arabia?
Answer:
Yes
Explanation:
A company can easily keep its western values and still do business in Saudi Arabia where values are different. The successfullness of this endeavor depends on the market in which the business operates and the demand in Saudi Arabia for it. If the Demand in Saudi Arabia is high due to the lack of that product/service locally then the company's western values will be what makes them profitable.
What is the difference between brainwashing and an argument?
Answer:
In essence, brainwashing is when you want and have a steong will to make someone believe what you believe and you think its the only way they can believe. Ann argument, on the other hand, is and shoukd be based off of facts and not false statements.
The difference between brainwashing and an argument is brainwashing involves manipulating someone with facts and information whereas an argument involves conversation to prove your point.
What causes an argument?
When situations when two individuals involved in a conversation share differences of opinions it causes disagreement between them and creates arguments in order to prove them stronger.
The terms brain washing means manipulating someone by giving information and influencing them with your point of view so they will also perform an action in the way in which you want them to do.
In manipulation, the new information is introduced with a lack of reasoning whereas in an argument there is the presence of information and data where individuals put their opinions based on their understanding.
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What was it about this job description that caught your eye?
Answer:
Interest in teaching!
Explanation:
What was it about this job description that caught my eye?
I had just finished from the mandatory National Youth Service Corps program in my country and wanted a job. Now, I had a certificate in Economics and inborn talents of teaching & creative writing. As a keen online researcher, I began searching for a job. Since I did a lot of presentation and public speaking in school, and had some years of teaching experience; teaching jobs were on my list of jobs to apply for.
On a fateful day, I stumbled upon this vacancy and was immediately interested because of the title "Online Tutor". I was excited that I could take my teaching expertise abroad. I applied for it and definitely, the job role is nothing different from the title or my expectations.
In an underwriting, which of the following is earned by a syndicate member who sells the issue directly to the public?a. Underwriter's Concessionb. Selling Concessionc. Spreadd. Management Fee
Answer: underwriter's concessions
Explanation:
An underwriting simply means to determine the price and risk of a particular security. An underwriting is typicall seen during initial public offerings, whereby investment banks buy securities at first and then later sell the security in the market.
In an underwriting, the underwriter concession is earned by a syndicate member who sells the issue directly to the public.
Productivity is expressed as:________ A. output plus input B. output minus input C. output times input D. output divided by input E. input divided by output
Answer:
D. Output divided by input
Explanation:
Productivity refers to how factors of production such as rent , land, labor and capital are combined efficiently to produce certain output in an economy. It is usually measured as output ratio divided by input ratio.
In other words, productivity means output gotten as a result of inputs added or given. For example, if 10 oranges are used to produce 3 litres of orange juice, then the productivity is the 3 litres of orange juice. However, if same number of oranges is used to produce say 4 litres of orange juice, we can safely say that the person who produces 4 litres of orange juice is more productive.
We can see here that productivity is expressed as: D. output divided by input
What is Productivity?Productivity is a measure of the efficiency or output of a process, system, or individual in relation to the inputs or resources used. It quantifies the relationship between the amount of output produced and the resources, such as labor, capital, time, or materials, that were required to produce that output.
Productivity can be measured in various ways depending on the context. For example, labor productivity measures the output per worker or per hour worked, while total factor productivity considers the combined contributions of multiple inputs, such as labor and capital.
The formula for productivity is:
Productivity = Output / Input
Therefore, option D. "output divided by input," correctly represents how productivity is expressed.
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Today, Courtney wants to invest less than $5,000 with the goal of receiving $5,000 back some time in the future. Which one of the following statements is correct?a. The period of time she has to wait until she reaches her goal is unaffected by the compounding of interest.b. The lower the rate of interest she earns, the shorter the time she will have to wait to reach her goal.c. She will have to wait longer if she earns 6% compound interest instead of 6% simple interest.d. The length of time she has to wait to reach her goal is directly related to the interest rate she earns.e. The period of time she has to wait decreases as the amount she invests today increases.
Answer:
E. The period of time she has to wait decreases as the amount she invests today increases
Explanation:
Which of the following are correct descriptions of large corporations? a) Managers no langer have the incentive to act in their own interests. b) The corporation survives even f managers are dismissed c) Shareholders can sell their holdings without disrupting the business d) Corporations, unlike sole proprietorships, do not pay tax: instead, shareholders are taxed on any dividends they receive.
Answer:
b) The corporation survives even if managers are dismissed.
c) Shareholders can sell their holdings without disrupting the business.
Explanation:
The above statements are correct descriptions of large corporations if consider;
1. A corporation is viewed as a legal entity, and so is believed to exist (survive) even if those who manage the corporation are dismissed.
2. Put simply, a shareholder holds some owns certain decision rights of a corporation, thus, the shareholder can decide to sell their holdings to an interested party. However, the business would not be disrupted, as only the holdings of a particular shareholder were sold, and the new shareholder would normally want the best interest of the company that's why he made the deal.
The primary function of the Income Statement is to:a. Show the company's value as of a given point in timeb. Determine if the company will have enough cash to operate properlyc. Determine taxes owed or not owedd. Compare the company's assets against the company's liabilitiese. Measure the company's financial performance over a period of time
Answer: e. Measure the company's financial performance over a period of time
Explanation:
The Income statement shows how the company performed financially in a certain period in relation to their operating activities.
By subtracting the expenses from the revenue, the income statement shows how the company was able to put its investments and assets to good use to be able to provide value for the shareholders.
The Income statement is prepared per period so the information it shows is period specific.
The collision repair industry does what volume of business per year? A. $1 million B. $10 Million C. $1 Billion D. $10 Billion
Answer: D. $10 Billion
Explanation:
The United States has a large economy with a very large number of cars which was estimated to be around 280 million in the last quarter of 2019. With these many cars it would be improbable that there would not be quite a number of accidents and there are. In the year 2018, around 12 million cars were involved in motor accidents.
With such a staggeringly high number of cars involved in collisions, it is no wonder that it is estimated that the collision repair industry does around $10 billion worth of business every year.
The Signal Company has operating income (EBIT) before depreciation expense of $1,500,000. The company’s depreciation expense is $400,000, and it has a 25% tax rate.A. If the company is 100% equity financed (zero debt), calculate its net income and net cash flow.B. If the company (instead) has $100,000 in annual interest expense, recalculate the net income and net cash flow.C. Explain the difference in your answers to parts A & B – specifically, reconcile the change in net cash flow that occurred.
Answer:
A. Net income is $825,000; and Net cash flow is $1,225,000.
B. Net income is $750,000; and Net cash flow is $1,150,000.
C. Parts A net cash flow will equal part B net cash flow by deducting $75,000 difference, or Parts B net cash flow will equal part A net cash flow by addiing $75,000 difference.
Explanation:
The following are given:
Operating income (EBIT) before depreciation expense = $1,500,000
Depreciation expense = $400,000
Tax rate = 25%
We therefore proceed as follows:
A. If the company is 100% equity financed (zero debt), calculate its net income and net cash flow.
Calculation of net income
Income after depreciation but before tax = Operating income (EBIT) before depreciation expense - Depreciation expense = $1,500,000 - $400,000 = $1,100,000
Tax expense = Income after depreciation but before tax * Tax rate = $1,100,000 * 25% = $275,000
Net income = Income after depreciation but before tax - Tax expenses = $1,100,000 - $275,000 = $825,000
Calculation of net cash flow
Net cash flow = Net income + Depreciation expense = $825,000 - $400,000 = $1,225,000
B. If the company (instead) has $100,000 in annual interest expense, recalculate the net income and net cash flow.
Calculation of net income
Income after depreciation and interest expenses but before tax = Operating income (EBIT) before depreciation expense - Depreciation expense - Interest expense = $1,500,000 - $400,000 - $100,000 = $1,000,000
Tax expense = Income after depreciation and interest expense but before tax * Tax rate = $1,000,000 * 25% = $250,000
Net income = Income after depreciation and interest expense but before tax - Tax expenses = $1,000,000 - $250,000 = $750,000
Calculation of net cash flow
Net cash flow = Net income + Depreciation expenses = $750,000 + $400,000 = $1,150,000
C. Explain the difference in your answers to parts A & B – specifically, reconcile the change in net cash flow that occurred.
Difference in net income = Part A net income - Part B net income = $825,000 - $750,000 = $75,000
Difference in net cash flow = Part A net cash flow - Part B net cash flow = $1,225,000 - $1,150,000 = $75,000
Each of Part A net income and net cash flow is $75,000 greater than part B because part A is an 100% equity financed with the need to pay annual interest expense on debt of $100,000 like in Part B before calculating the Tax expense and the net income.
The $75,000 diffence is as a result of additional tax that Part A has to paid on $100,000. That is,
Additional tax expense in part A = Interest expense not paid in Part A * Tax rate = $100,000 * 25% = $25,000
Diffrenrence = Intererest expense not paid in part A - Additional tax expense = $100,000 - $25,000 = $75,000
For example, if there is no annual interest of $100,000 to be paid in part B, we can then reconcile by just addinf back the difference as follows:
Part B new net cash flow = Part B initial cash flow + Difference in net cash flow = $1,150,000 + $75,000 = $1,225,000 = Part A net cash flow
Also, if annual interest expense has to be paid in part A as a result of being now financed by debt, we will just deduct the difference as follows:
Part A new net cash flow = Part A initial cash flow - Difference in net cash flow = $1,225,000 - $75,000 = $1,150,000 = Part B initial net cash flow.
Which of the following is an example of nonassertive behavior in a Western culture?A. Briefly gathering your thoughts before respondingB. Avoiding eye contact when talking to someoneC. Folding hands while talkingD. Apologizing for mistakes and moving on with the conversation
Answer:
B. Avoiding eye contact when talking to people.
Explanation:
There are some people who do not have control over themselves. Oftentimes, others take undue advantage over them because they lack self confidence, and most often than not, do not always take charge of interpersonal relationships. This type of behavior is called non assertiveness.
Non assertive people easily gets influenced by people hence are termed as being manipulable. Some of the causes are ; lack of motivation, having high regards or expectation of others, always dwelling on the past, lack of focus on what they intend to achieve etc. However, this type of behavior can be corrected through constant feedback to whoever that is involved. Also, such people should be treated respectfully by giving them the attention they required.
In the EOQ model, the average inventory per cycle over many cycles is Q/2. A. True B. False
Answer:
A. True
Explanation:
An organization would usually measure the volume of its orders in order to meet up with demand while also making sure that the cost per order is maintained at the nearest minimum. The tool used to measure the volume of frequent orders is Economic order quantity(EOQ) .
When inventories are ordered, there will be continuous movement of inventory say from Q(order amount) to zero. This means that the average inventory is Q ÷ 2. Also, the inventory costs for each period is the same as average cost(Q/2) multiply by length of the period.
An investor in an oil and gas limited partnership program is subject to the economic consequences of all of the following EXCEPT:_________. A) depreciation on tangible assets. B) nonrecourse loans. C) recourse loans. D) operating losses.
Answer:
B) nonrecourse loans.
Explanation:
The answer is non recourse loans and this is the reason why. Such loans only hold for those in real estates. That is it is limited to investors in real estate. Such a loan is usually gotten by means of collateral which is usually in the form of real estate. The person who issues such a loan can seize the collateral in case of a default in payment.
Another fix for_____complexity involves protection against an inherent single-point-of-failure dilemma.
Answer: runtime
Explanation:
Time complexity is a concept that simply deals with quantification of the amount of time that is typically taken by an algorithm or set of code to run or process as a function of the input amount.
Runtime efficiency is essential as another another fix for its complexity involves protection against an inherent single-point-of-failure dilemma.
Answer the following questions about the Target balance sheet.
1. Which balance sheet format does Target use?
2. Name the company’s largest current asset and largest current liability at January 30, 2016.
3. Compute Target’s current ratios at January 30, 2016, and January 31, 2015. Did the current ratio improve, worsen, or hold steady?
4. Under what category does Target report furniture, fixtures, and equipment?
5. What was the cost of the company’s property, plant, and equipment at January 30, 2016? What was the amount of accumulated depreciation? What was the book value of the property, plant, and equipment?
Answer:
1. Which balance sheet format does Target use?
Consolitated Statements of Financial Position
2. Name the company’s largest current asset and largest current liability at January 30, 2016.
Largest current asset: inventory $8,601 million
Largest current liability: accounts payable $7,418 million
3. Compute Target’s current ratios at January 30, 2016, and January 31, 2015. Did the current ratio improve, worsen, or hold steady?
Current ratio 2016 = 14,130 / 12,622 = 1.12
Current ratio 2015 = 13,624 / 11,736 = 1.16
We can see that the current ratio worsened a bit from 2015 to 2016.
4. Under what category does Target report furniture, fixtures, and equipment?
Under property, land, and equipment.
5. What was the cost of the company’s property, plant, and equipment at January 30, 2016?
$55,593 million
What was the amount of accumulated depreciation?
$16,246 million
What was the book value of the property, plant, and equipment?
$25,217 million
Which of the following do you think would lead to an increase in the current demand for beef?
a. higher pork prices
b. higher consumer income
c. higher prices of feed grains used to feed cattle
d. widespread outbreak of mad cow or hoof-and-mouth disease
e. an increase in the price of beef
Answer:
b. higher consumer income
One key goal of marketing is to
Answer:
Increase Sales and/or Revenue
If you are selling products or services, you may want to focus on selling more of those offerings. This is one of the marketing objectives that will increase revenue and the amount of money coming into your business.
Explanation:
Plz Mark me as brainliest
Answer:promote new products or services
Grow digital presence
Lead generation
Develop brand loyalty
Retain existing customers
Target new customers
Explanation:
Set up a skeletal profit and loss statement in both dollars and percentage if your year-end profit is $7800, The profit percentage is 3.9%, and your yearly cost of goods sold is $120,000
Answer:
A skeletal profit and loss statement is basically a very condensed income statement that doesn't include many details, it only includes the essential elements:
Yearly revenue $200,000 100%
Cost of goods sold ($120,000) 60%
Gross profit $80,000 40%
Operating expenses ($72,200) 36.1%
Net profit $7,800 3.9%
Fill in the blanks to complete the sentence about the law of increasing opportunity cost. Drag word(s) below to fill in the blank(s) in the passage. According to the law of increasing opportunity cost, as a society______more and more of a certain good, further production_______ involve ever-greater opportunity costs, so that producing the good is associated with greater and greater________
Answer and Explanation:
The law of increasing opportunity cost refers to the law in which the way of increasing the opportunity cost described at that case when there are applied resources
Now
If the cost of opportunity rises as per the law, the society produced more and more goods i.e. certain further the production rises and also involved the ever greater cost of opportunity with greater and greater trade offs or opportunity cost
A new client of yours is age 25, with limited investing experience. You have guided him when making his initial investments based on his investment objectives, risk tolerance, financial resources and financial needs. He has just returned from a long vacation, where he tells you that while on the airplanes, he has read 2 investing books and now wants to manage his account without your input. This is an example of:
Answer: Overconfidence
Explanation:
Becoming an Investment advisor is no easy feat. In most cases one would have to go through rigorous training in college after which they will probably have to get additional certification which may require more training.
All this is done to ensure that the client's money is as safe as possible in the hands of the investment advisor while they attempt to grow it. To think that after reading just 2 books on investing, one can become so good that they can manage their own investment is simply overconfidence.
Even if they were blessed with an IQ higher than Einstein, 2 books is not enough to get the requisite knowledge required. If being an investment advisor was so easy, more people would be allowed to do it.