Which of the following statements is CORRECT?
a. Suppose you are managing a stock portfolio, and you have information that leads you to believe the stock market is likely to be very strong in the immediate future. That is, you are convinced that the market is about to rise sharply. You should sell your high-beta stocks and buy low-beta stocks in order to take advantage of the expected market move.
b. Collections Inc. is in the business of collecting past-due accounts for other companies, i.e., it is a collection agency. Collections' revenues, profits, and stock price tend to rise during recessions. This suggests that Collections Inc.'s beta should be quite high, say 2.0, because it does so much better than most other companies when the economy is weak.
c. Suppose the returns on two stocks are negatively correlated. One has a beta of 1.2 as determined in a regression analysis using data for the last 5 years, while the other has a beta of %u22120.6. The returns on the stock with the negative beta must have been negatively correlated with returns on most other stocks during that 5-year period.
d. If the market risk premium remains constant, but the risk-free rate declines, then the required returns on low-beta stocks will rise while those on high-beta stocks will decline.
e. You think that investor sentiment is about to change, and investors are about to become more risk averse. This suggests that you should rebalance your portfolio to include more high-beta stocks

Answers

Answer 1

Answer: C. Suppose the returns on two stocks are negatively correlated. One has a beta of 1.2 as determined in a regression analysis using data for the last 5 years, while the other has a beta of %u22120.6. The returns on the stock with the negative beta must have been negatively correlated with returns on most other stocks during that 5-year period.

Explanation:

From the options given, the correct option is option C "Suppose the returns on two stocks are negatively correlated. One has a beta of 1.2 as determined in a regression analysis using data for the last 5 years, while the other has a beta of %u22120.6. The returns on the stock with the negative beta must have been negatively correlated with returns on most other stocks during that 5-year period".

Option A is wrong because when there is information that a particular stock will be strong in the future, one should not sell your high-beta stocks and buy low-beta stocks rather the low best stocks should be sold and high beta stocks should be bought.

Option B is wrong because during recession, collections' revenues, profits, and stock price tend to fall and not rise. During recession, there is decrease in economic growth, unemployment and other negative effects in the economy.

Option D and E are wrong as well as the reverse is the case in both situations. The correct option is C.


Related Questions

Kampus Corporation had the following eight investment transactions or events:

Jan 1 Purchased Argon Co. bonds for $10,000 cash. (Purchase is considered a short-term investment in available-for-sale (AFS) debt securities.)
Jan 3 Purchased 1,200 shares of Elmer, Inc. for $36,000 cash. (Purchase is considered a long-term stock investment with insignificant influence.)
Mar 31 Received cash dividend of $0.25 per share from Elmer, Inc.
Jun 1 Purchased 5,000 shares of Logan, Inc. for $60 per share. These shares represent a 40% ownership in Logan, Inc.
Sep 30 Received cash dividend of $2 per share from Logan, Inc.
Dec 31 Logan, Inc. reported net income of $150,000 for the year.
Dec 31 As of December 31, the Argon Co. bond had a fair (market) value of $12,000.
Dec 31 As of December 31, the Elmer, Inc. stock had a fair (market) value of $25 per share.

Required:
Prepare the journal entries Kampus Corporation should record for these transactions and events.

Answers

Answer:

Kampus Corporation

Journal Entries:

Jan 1 Debit Bonds Receivable (Argon Co.) $10,000

Credit Cash $10,000

To record a short-term investment in available-for-sale (AFS) debt securities.)

Jan 3 Debit Investments (Long-term) in Elmer, Inc. $36,000

Credit Cash $36,000

To record the long-term investment (1,200 shares of Elmer, Inc. at $30 each.)

Mar 31 Debit Cash $300

Credit Dividend Received $300

To record dividend received from Elmer's investment

($0.25 per share of 1,200 shares).

Jun 1 Debit Investment in Logan, Inc. $300,000

Credit Cash $300,000

To record the investment in 5,000 shares of $60 per share, representing a 40% equity ownership.

Sep 30 Debit Cash $10,000

Credit Investment in Logan, Inc. $10,000

To record dividend received from investment in Logan, Inc. ($2 per share of 5,000 shares).

Dec 31 Debit Investment in Logan, Inc. $60,000

Credit Retained Earnings $60,000

To record 40% share of the Net income of $150,000 in Logan, Inc.

Dec 31 No Journal Required: Argon Co. bond had a fair (market) value of $12,000.

Dec 31 Debit Unrealized Loss from Investment in Elmer, Inc. $6,000

Credit Investment in Elmer, Inc. $6,000

To record $5 lost in the (market) value of $25 per share.

Explanation:

a) Data and Analysis:

Jan 1 Bonds Receivable (Argon Co.) $10,000 Cash $10,000

a short-term investment in available-for-sale (AFS) debt securities.)

Jan 3 Investments (Long-term) in Elmer, Inc. $36,000  Cash $36,000 1,200 shares of Elmer, Inc. at $30 each.

Mar 31 Cash $300 Dividend Received $300

$0.25 per share of 1,200 shares.

Jun 1 Investment in Logan, Inc. $300,000 Cash $300,000

5,000 shares of $60 per share, represent a 40% ownership.

Sep 30 Cash $10,000 Dividend Received $10,000

$2 per share of 5,000 shares.

Dec 31 Investment in Logan, Inc. $60,000 Retained Earnings $60,000

40% share of the Net income of $150,000  in Logan, Inc.

Dec 31 No Journal Required: Argon Co. bond had a fair (market) value of $12,000.

Dec 31 Unrealized Loss from Investment in Elmer, Inc. $6,000 Investment in Elmer, Inc. $6,000 (market) value of $25 per share.

Suppose the working age population of a fictional economy, Jessica Town, falls into the following categories: 100 are retired homemakers; 50 have full-time employment; 15 have part-time employment; 28 do not have employment but are actively looking for employment; and 16 would like employment but do not have employment and are not actively looking for employment. The official unemployment rate as calculated by the U.S. Bureau of Labor would equal:_________

Answers

Answer: 30.1%

Explanation:

The unemployment rate includes those who do not have employment but are actively looking for employment not those who do not have a job and are not looking.

The rate is also based on the Labor force which is the portion of the population that is able and willing to work. Retirees are not included in this measure. Those who are not looking are not willing.

Labor Force = 50 full-time + 15 part-time + 28 unemployed

= 93 people

Unemployment rate:

= 28 / 93 * 100

= 30.1%

Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company's operations.
Standard Custom
Direct labor costs $59,000 $112,000
Machine hours 1,380 1,110
Setup hours 101 370
Total estimated overhead costs are $309,000. Overhead cost allocated to the machining activity cost pool is $200,000 and $109,000 is allocated to the machine setup activity cost pool.
(a) Compute the overhead rate using the traditional (plantwide) approach.
(b) Compute the overhead rates using the activity-based costing approach.
(c) Determine the difference between the two approaches.

Answers

Answer:

Saddle Inc.

a) The overhead rate using the traditional (plantwide) approach is:

= $1.81 per direct labor cost.

b) The overhead rates using the activity-based costing approach:

Machining activity          =  $80.32

Machine setup activity =   $231.42

c) The traditional approach overallocated total overhead by $515 than the activity-based approach.

Under the traditional approach, overhead allocated to the Custom product was $27,940 more than under the activity-based approach.

Similarly, under the activity-based approach, overhead allocated to the Standard product was $27,425 more than under the traditional approach.

The difference in the two being the overallocated overhead of $515 stated above.

Explanation:

a) Data and Calculations:

Estimated overhead costs = $309,000

Overhead allocated:

Machining activity = $200,000

Machine setup activity = $109,000

                                Standard        Custom      Total

Direct labor costs    $59,000     $112,000    $ 171,000

Machine hours              1,380             1,110          2,490

Setup hours                      101              370              471

Overhead rate using plantwide approach:

Total overhead/Total direct labor costs

= $309,000/$171,000 = $1.81 per direct labor cost

Overhead rates, using activity-based costing:

Machining activity          =  $80.32  ($200,000/2,490)

Machine setup activity =   $231.42 ($109,000/471)

Overhead Allocation

                                Standard        Custom                  Total

Plantwide                $106,790      $202,720              $309,510

                      ($59,000 * $1.81)   ($112,000 * $1.81)  

Activity-based:

Machining              $110,842          $89,155              $199,997

                         (1,380 * $80.32)   (1,110 * $80.32)

Machine setup         23,373            85,625                108,998

                         (101 * $231.42)     (370 * $231.42)

Total costs            $134,215          $174,780            $308,995

Difference            $27,425            $27,940                 $515

Full-time students at a particular university must have at least 12 credit hours, but may take up to 18 credit hours in a semester. A student is currently signed up for 15 credit hours. In deciding whether to add one more course to a fall semester schedule, which of the following is a marginal cost or benefit that will influence the student's decision?
Please choose the correct answer from the following choices, and then select the submit answer button.
a. the total number of semesters it will take to finish the degree if the student takes an additional class in each semester
b. the wages the student misses out on because the student has to quit a job to take any classes at all
c. the tuition bill for the semester
d. the additional technology fee that is paid per credit hour

Answers

Answer:

d. the additional technology fee that is paid per credit hour

Explanation:

Since in the question it is mentioned that the full time students should take minimum 12 credit hours but it would take maximum of 18 credit hours

Now the student signed up for 15 creditor hours and he wants to add one more so the marginal cost or benefit that can impact the decision of the students is that the extra technology fee that should be paid for per credit hour

Hence, the option d is correct

Bradford, Inc., expects to sell 11,000 ceramic vases for $21 each. Direct materials costs are $3, direct manufacturing labor is $11, and manufacturing overhead is $5 per vase. The following inventory levels apply to 2019: Beginning inventory Ending inventory Direct materials 1,000 units 1,000 units Work-in-process inventory 0 units 0 units Finished goods inventory 100 units 600 units On the 2019 budgeted income statement, what amount will be reported for sales

Answers

Answer:

$231,000

Explanation:

With regards to the above, the total sales would be;

= Number of units Bradford inc. Is expected to sell × Per unit of ceramic vases

Given that;

Units expected to be sold = 11,000

Per unit of ceramic vases = $21

Total sales

= 11,000 units × $21

= $231,000

Since we were asked to get the total sales, we will simply multiply the per units sold with the units expected to be sold. Other information are not useful for the purpose of calculating the total sales.

Suppose the elasticity of demand for tickets to Broadway shows is 2.0 for men and 0.3 for women. To use price discrimination to increase profits, the producers should charge lower prices to _____ because their demand is more _____. men; inelastic than that of women women; inelastic than that of men women; elastic than that of men men; elastic than that of women

Answers

Answer:

men; elastic than that of women

Explanation:

Price discrimination is when the same product is sold at different prices to customers in different markets

types of price discrimination

1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.  

3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students  

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Men have an elastic demand for tickets to Broadway shows

Women have an inelastic demand for tickets to Broadway shows

Since men have an elastic demand, if prices are reduced, the demand for tickets would increase and total profits of producers would increase

Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8 Direct labor 24 Overhead 40 Total costs per unit $72 An outside supplier offers to provide Epsilon with all the units it needs at $60 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead (this means that no matter what Epsilon does, 40% of the overhead costs will remain). Epsilon should choose to:

Answers

Answer:

It is cheaper to make the units in-house.

Explanation:

Giving the following information:

Make in-house:

Direct material $ 8

Direct labor 24

Overhead 40

Total costs per unit $72

Buying price= $60

We need to determine which option provides the lower cost. Because 40% of overhead will remain constant, we have to take it out of the equation.

Production cost:

Direct material $ 8

Direct labor 24

Overhead= 40*0.6= 24

Total production cost= $56

It is cheaper to make the units in-house.

St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% of normal production capacity. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000, and actual variable overhead was $170,000. Actual production was 11,700 units. The fixed factory overhead volume variance is a.$5,500 favorable b.$9,000 unfavorable c.$5,500 unfavorable d.$9,000 favorable

Answers

Answer:

YOUUUU TOOOOOO!!!!!!!!!!!!!!!!

Explanation:

Hi this man I was wondering if you had any time today I have a good morning sleep today and I’m just gonna be watching a movie for

Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.

Answers

Explanation:

The solution can be made in tabular form as given below for better comprehension. This easily calculates gross profit  for each of the four costing methods.

Particulars                         FIFO    LIFO           Avg cost Spec. ID

Sales                                50900   50900             50900 50900

Cost of goods sold         31800    32920              32248 32540

Gross Profit                          19100     17980               18652 18360

1) Record the following transactions in the General Fund General Ledger of Benford Township using the consumption method (periodic inventory system) to account for materials, supplies, and prepayments. Record both the budget-ary and actual entries.
2) Compute the amount of expenditures to be reported in the school district General Fund statement of revenues, expenditures, and changes in fund balance.
3) Compute the amount of nonspendable fund balance to be reported at year end. Materials and supplies costing $90,000 were on hand at the beginning of the year. 1. The town ordered the following:
Estimated Cost
Garbage vehicles—4 . . . . . . . . . . . . . . . . . . . . . . . $225,000
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312,000
2. The town received the garbage vehicles. The actual cost of $222,000 was vouchered for payment.
3. The town received most of the supplies ordered (estimated cost $302,000). The actual cost was $301,800.
4. The town paid $523,800 of vouchers payable.
5. At year­end, the town had supplies on hand costing $102,000.

Answers

Answer:

1)

1. Dr Encumbrances $537,000

Cr Reserve for Encumbrances $537,000

2. Dr Reserve for Encumbrances $222,000

Cr Encumbrances $222,000

Dr Expenditures – Capital Outlay - Trucks $222,000

Cr Vouchers Payable $222,000

3. Dr Reserve for Encumbrances $302,000

Cr Encumbrances $302,000

Dr Inventory – Materials and Supplies $301,800

Cr Vouchers Payable $301,800

4. Dr Vouchers Payable $523,800

Cr Cash $523,800

5. Dr Inventory -Materials and Supplies $12,000

Cr Expenditures – Materials and Supplies $12,000

2) $511,800

3) $102,000

Explanation:

1) To Record the transactions in the General Fund General Ledger of Benford Township using the consumption method and to Record both the budget-ary and actual journal entries.

1. Preparation of the journal entry if The town ordered Garbage vehicles of the amount of $225,000 and Supplies of the amount of $312,000

Dr Encumbrances $537,000

Cr Reserve for Encumbrances $537,000

($225,000+312,000)

2. Preparation of The journal entry if The actual cost of the amount of $222,000 was vouchered for payment.

Dr Reserve for Encumbrances $222,000

Cr Encumbrances $222,000

Dr Expenditures – Capital Outlay - Trucks$222,000

Cr Vouchers Payable $222,000

3. Preparation of the journal entry if The town received most of the supplies ordered (estimated cost of the amount of $302,000) while The actual cost was the amount of $301,800.

Dr Reserve for Encumbrances $302,000

Cr Encumbrances $302,000

Dr Inventory – Materials and Supplies $301,800

Cr Vouchers Payable $301,800

4. Preparation of the journal entry if The town paid the amount of $523,800 of vouchers payable.

Dr Vouchers Payable $523,800

Cr Cash $523,800

5. Preparation of the Journal entry if At year end, the town had supplies on hand costing the amount of $102,000

Dr Inventory -Materials and Supplies $12,000

Cr Expenditures – Materials and Supplies $12,000

($523,800-$511,800)

2) Computation for the amount of expenditures to be reported in the school district General Fund statement of revenues, expenditures, and changes in fund balance

EXPENDITURES

Capital Outlay $222,000

Materials and Supplies:

Beginning Inventory $90,000

Purchases$301,800

Total Available$391,800

Less Ending Inventory ($102,000)$289,800

($391,800-$102,000)

Total $511,800

($222,000+$289,800)

Therefore the amount of expenditures to be reported in the school district General Fund statement of revenues, expenditures, and changes in fund balance is $511,800.

3) Based on the information given we were told that At the end of the year the town had supplies on hand costing the amount of $102,000 which means that The amount of nonspendable fund balance to be reported at year end will equal to Inventory on hand of the amount of $102,000.

Bryant Company has a factory machine with a book value of $93,100 and a remaining useful life of 5 years. It can be sold for $27,200. A new machine is available at a cost of $430,400. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $592,600 to $505,500. Prepare an analysis showing whether the old machine should be retained or replaced.

Answers

Answer:

The old machine should be replaced.

Explanation:

Note: See the attached excel file for the the analysis showing whether the old machine should be retained or replaced.

From the attached excel file, the following calculation are made:

Variable Manufacturing cost of Retain = Initial Variable Manufacturing cost * remaining useful life of old machine = $592,600 * 5 = $2,963,000

Variable Manufacturing cost of Replace = New Variable Manufacturing cost * Remaining useful life of new machine = $505,500 * 5 = $2,527,500

From the attached excel, it can be observed that the total cost of Retain is $32,200 higher than the total cost of Replace. This therefore implies that the old machine should be replaced.

Mid City Products Inc. (MCP), developed standard costs for direct material and direct labor. In 2017, MCP estimated the following standard costs for one of their most popular products. Budgeted quantity Budgeted price Direct materials 4 pounds $7.25 per pound Direct labor 0.60 hours $17.00 per hourDuring September, MCP produced and sold 2,000 units using 8,200 pounds of direct materials at an average cost per pound of $7.00 and 1,160 direct labor hours at an average wage of $17.50 per hour. The direct labor efficiency variance during September is ________. $600 favorable $700 unfavorable $680 favorable $100 unfavorable

Answers

Answer:

See below

Explanation:

The below shows the calculation of variance

Budgeted direct labor (per unit) 0.60

Units 2,000

Budgeted direct total labor (hrs) 1,200

Actual hours 1,160

Standard rate $17

Direct labor efficiency variance

The direct labor efficiency variance

= (Budgeted hours - Actual hours) × Standard rate

= (1,200 - 1,160) × $18

= $720 favourable

Marcelino Co.'s March 31 inventory of raw materials is $84,000. Raw materials purchases in April are $580,000, and factory payroll cost in April is $387,000. Overhead costs incurred in April are: indirect materials, $59,000; indirect labor, $28,000; factory rent, $32,000; factory utilities, $20,000; and factory equipment depreciation, $52,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $680,000 cash in April. Costs of the three jobs worked on in April follow:

Job 306 Job 307 Job 308
Balances on March 31
Direct materials $30,000 $41,000
Direct labor 23,000 16,000
Applied overhead 11,500 8,000
Costs during April
Direct materials 139,000 200,000 $115,000
Direct labor 103,000 150,000 104,000
Applied overhead ? ? ?
Status on April 30 Finished (sold) Finished (unsold) In process

Required:
a. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).
b. Prepare journal entries for the month of April to record the above transactions.
c. Prepare a schedule of cost of goods manufactured.
d. Compute gross profit for April

Answers

Answer:

Marcelino Co.

a. The total of each production cost incurred for April:

Direct materials                    $454,000

Direct labor                             357,000

Applied overhead                   178,500

The total cost assigned to each job:

                                         Job 306        Job 307         Job 308

Total cost of production $358,000     $490,000      $271,000

b. Journal Entries for the month of April:

Debit Work in Process:

Job 306 $139,000      

Job 307  $200,000              

Job 308 $115,000

Credit Raw Materials $454,000

To record the raw materials used in production.

Debit Work in Process:

Job 306 $103,000            

Job 307  $150,000                        

Job 308 $104,000

Credit Payroll $357,000

To record the direct labor costs.

Debit Work in Process:

Job 306 $51,500              

Job 307  $75,000                            

Job 308 $52,000

Credit Manufacturing Overhead $178,500

To record the applied overhead costs.

c. Schedule of Cost of Goods Manufactured:

Beginning Work in Process       $129,500

Direct materials                           454,000

Direct labor                                  357,000

Applied overhead                        178,500

Total production costs            $1,119,000

Less Ending Work in Process    271,000

Cost of goods manufactured $848,000

d. Gross profit for April:

Sales of Job 306 =    $680,000

Cost of Job 306 =       358,000

Gross profit               $322,000

Explanation:

a) Data and Calculations:

Beginning inventory:

Raw materials = $84,000

Cost incurred in April:

Purchases = $580,000

Factory payroll = $387,000

Overhead costs:

Indirect materials,                           $59,000

Indirect labor,                                  $28,000

Factory rent,                                   $32,000

Factory utilities,                              $20,000

Factory equipment depreciation, $52,000

Total overhead costs                    $191,000

Cash Sales of Job 306 = $680,000

Cost Sheet:

                                              Job 306      Job 307        Job 308

Balances on March 31

Direct materials                    $30,000      $41,000                             $71,000

Direct labor                             23,000        16,000                              39,000

Applied overhead                    11,500          8,000                               19,500

Beginning work in process $64,500     $65,000                          $129,500                            

Costs during April

Direct materials                   139,000      200,000        $115,000     454,000

Direct labor                          103,000       150,000         104,000     357,000

Applied overhead                 51,500         75,000          52,000      178,500

Total cost of production $358,000     $490,000      $271,000  $1,119,000

Status on April 30 Finished (sold)  Finished (unsold)  In process

Livingston Fabrication has created the following aggregate plan for the next five months: August September October November December Forecasted Demand (units of finished goods): 1,500,000 1,500,000 2,000,000 3,000,000 500,000 Production Plan: 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Assume that Livingston will have nothing in inventory at the end of July. Livingston employs 1,000 production assembly workers and it takes one production assembly worker 5 minutes to assemble one unit of finished good. (The unit is complete at that point.) Each production assembly worker can provide 150 hours of assembly time a month without requiring overtime pay. What will be ending inventory for the month of September?

Answers

Answer:

Livingston Fabrication

The ending inventory for the month of September is:

= 600,000 units.

Explanation:

a) Data and Calculations:

                                August   September  October  November  December

Forecasted Demand (units of

finished goods):  1,500,000  1,500,000 2,000,000 3,000,000    500,000

Production Plan: 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000

Production capacity = 150 * 60 * 1,000 = 9,000,000 minutes

Minutes required by each assembly worker to assemble 1 unit = 5

Units that can be produced based on capacity = 1,800,000 units (9,000,000/5)

Schedule of Production, Sales, and Ending Inventory:

                                August   September  October  November  December

Beginning inventory 0              300,000    600,000    400,000  (600,000)

Units produced    1,800,000  1,800,000  1,800,000  1,800,000 1,800,000

Demand               1,500,000  1,500,000 2,000,000 3,000,000   500,000

Ending inventory   300,000    600,000    400,000   (600,000)   700,000

Hilary, a manager of a family restaurant, is considering a renovation investment that would expand the operation's menu offerings. The project will have an initial cost of $36,000. Annual cash inflow from the project is expected to be $12,000 while cash outflow is expected to be $5,000 which will results in $7,000 annual net cash inflows for the next 8 years. What is the payback period in years for the proposed investment

Answers

Answer:

5 years and 1-2 months

Explanation:

if you do the math 7,000 x 5,000 is 35,000$ over a 5 year period you would pay back that much plus that little extra grand you owe

The projected investment's payback duration in years is 5 years and 1-2 months.

A multi-brand loyalty program called payback enables you to accumulate and use points whenever you shop. You can earn points on a variety of purchases, including grocery, petrol, entertainment, travel, clothing, and more, through a large network of in-store and online partners.

Members are able to accumulate points and use them to get free shopping. The event was held at the WWE Thunder Dome, located at the Amway Center in Orlando, Florida, on August 30, 2020. It was the first Payback staged following the 2017 event, but it also served as the last projected because no other events were planned. The event's theme was wrestlers getting even with their opponents.

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A mail-order house uses 16,025 boxes a year. Carrying costs are 46 cents per box a year, and ordering costs are $97. The following price schedule applies. Number of Boxes Price per Box 1,000 to 1,999 $1.35 2,000 to 4,999 1.25 5,000 to 9,999 1.15 10,000 or more 1.10 Click here for the Excel Data File a. Determine the optimal order quantity. (Round your answer to the nearest whole number.) b. Determine the number of orders per year. (Round your answer to 2 decimal places.)

Answers

Answer:

a. Optimal order quantity = 2,600 boxes

b. Number of orders per year = 6.16 orders per year

Explanation:

a. Determine the optimal order quantity. (Round your answer to the nearest whole number.)

D = Annual demand = 16,025

O = Ordering cost = $97

C = Carrying costs = 46 cents, or $0.46

Optimal order quantity = Economic order quantity = ((2 * D * O) / C)^0.5 = ((2 * 16,025 * 97 ) / 0.46)^0.5 = 2,600 boxes

b. Determine the number of orders per year. (Round your answer to 2 decimal places.)

Number of orders per year = Annual demand / Economic order quantity = 16,025 /  2,600 = 6.16 orders per year

Annual Income Statement Data Selected Year-End Balance Sheet Data Sales $ 50,000 Prepaid expenses increase $ 3,000 Expenses: Inventory increase 500 Cost of goods sold 30,000 Accounts payable decrease 1,000 Wages expense 10,000 Amortization expense 1,500 Net income $ 8,500 Prepare the operating activities section of the statement of cash flows for GreenGarden using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

see calculation and working below

Explanation:

operating activities section

Net income                                                               $ 8,500

Adjust for changes in non- cash items :

Amortization expense                                                $1,500

Adjust for changes in working capital :

Prepaid expenses increase                                   ($ 3,000)

Inventory increase                                                     ($500)

Accounts payable decrease                                   ($1,000)

Net Cash Provided by Operating Activities            $5,500

You are attending a training session on the principles that will help you do a better job of managing a new company-wide diversity program.. You are going through an exercise in which you are given two statements and asked to pick the one that effectively illustrates one of these principles.
Here is one set of statements:
Statement 1
Remember to keep looking for the ideal candidate for a position. Settling for an applicant that lacks all the skills necessary to perform a job, but adds to the diversity of your workforce, is not ideal.
Statement 2
You will be better able to increase the diversity of your workforce if you interview candidates with entry-level experience even though it might be ideal to hire someone with years of experience.
You should choose statement _________as the more appropriate strategy for managing diversity, since it is an example of_________.
You were unable td Statement 1 e training, but your coworker has offered to fill you in on the details that you missed. Identify which of the following statements your coworer to indicate as diversity principles discussed during your absence.
a. Surface-level diversity should not be treated as more important than deep-level diversity
b. Do not lower hiring standards to promote diversity in the workplace
c. Keep trying to accomplish as much as possible, even if implementing the diversity program becomes difficult.

Answers

Answer:

Managing a Company-wide Diversity Program

1. The statement that effectively illustrates a diversity principle is:

Statement 2

You will be better able to increase the diversity of your workforce if you interview candidates with entry-level experience even though it might be ideal to hire someone with years of experience.

2. You should choose statement ___2______as the more appropriate strategy for managing diversity, since it is an example of__managing high standards_______.

3. The statement that indicates one of the diversity principles discussed during your absence is:

a. Surface-level diversity should not be treated as more important than deep-level diversity.

Explanation:

Workplace diversity is an important current topic.  Diversity encourages productivity, creativity, innovation, and increased customer service.  Diversity ensures that our limited worldviews are expanded to include others who are not, and do not think, like us but are humans created in Love and Mercy, to work with us, to make the world a better place.  In today's workplace, a diverse culture looks beyond the familiar-cultural boundaries to embrace diverse peoples without minding their sex, race, sexual orientations, education, and other human attributes.

1.The IASB sets standards for:
a. The private sector
b. The public and private sectors
c.The public, private and not-for-profit sector
d. The private and not-for-profit sector

Answers

I think it’s D hope that helped

Complete the journal entries for the following financing transactions.

a. A farmer deposits $350 from a garage sale of personal items into the farm checking account.
b. A farmer pays $100 for groceries with the farm checking account utilities of $65 for the farmer's house is paid with a check from the farm checking account.
c. A farmer culls his cow herd and sells the cows for $3,000 A farmer builds a shed for $7,000

Answers

Answer:

The answer is

Explanation:

The answer is ___, because

Customer: An entity that describes a customer. An instance occurs for unique customers only using name, date of birth, and login name as customer_id primary key.
Online: An entity that describes a customer purchasing activity online. An instance occurs when the customer completes the transaction. Customers can purchase more than once.
Visits: An entity that describes a customer purchase in a physical store. An instance occurs if a customer makes or purchase or checks-in using an app. Customers can visit more than once per day.
Satisfaction: An entity that represents data from a recent customer satisfaction survey. An instance occurs when a customer takes the survey. A customer is tracked by login name and can only take the survey one time.
Use the information to match the following relationships. Answers can be reused more than once.
1. The relationship between Customer and Online.
2. The relationship between Customer and Satisfaction.
3. The relationship between Online and Visits.
4. The relationship between Visits and Satisfaction
A. prototype
B. one-to-one
C. Zero-sum
D. one-to-many
E. TOO many F. many-to-many.

Answers

Answer:

1. The relationship between customer and Online - One to one

2. The relationship between customer and Satisfaction - One to many

3. The relationship between online and visits - Many to many

4. The relationship between Visits and satisfaction - Prototype

Explanation:

The relation ship with customer is often one to one. The customers are required to fill the satisfaction surveys which enable the business to understand their value in the eyes of its customers and try to improve their level of service to their customers. The customer satisfaction is important for any business as the satisfied customer may bring more customers.

Imagine Two Households each with an income of $65,000 per year. Household A consists of two married individuals both 51 years old with one child who is now 27 years old and out of the house. Household B consists of two married individuals who are 31 years old and have three young children, two of which attend day care. The Government in implementing policies to effect Tax Fairness will concentrate on:

Answers

Answer: A. The Benefits Principle

Explanation:

According to the Benefits Received principle, people should pay taxes based on the benefits they receive from the government. This is how the government will effect tax fairness.

For example, Household B has three young children, two of which are in day care while Household A does not have any children at that age. Household A and Household B should therefore not pay the same when it comes to educational taxes. Household B should pay more and Household A should pay less because an educated society is beneficial to everyone but to them, only indirectly.

The government, when carrying out tax equity, will focus on the principle of benefits, as shown in option A.

We can arrive at this answer because:

The principle of benefits is considered whenever the government needs to determine the tax rate of citizens.This principle determines that people who use a particular social service must pay a higher tax rate than those who do not use that service.

An example of this can be seen in the families presented above, since, in relation to the tax paid to promote national education, both families must be taxed, since the entire population benefits from this service.

However, family B benefits more from this service, as they have three children who need education promoted by the government, unlike family A, who has an adult child and who have already graduated.

According to the principle of benefits, both families must pay taxes for education, but family B must pay a higher tax than family A.

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The goal of the accounts receivable methods is to adjust the Allowance for Doubtful Accounts balance so that multiple choice The unadjusted balance is equal to the estimate of the uncollectible accounts receivable. The adjusted balance is equal to the estimate of the uncollectible accounts receivable. The adjusted balance is equal to the estimate of the uncollectible sales. The unadjusted balance is equal to the ending accounts receivable balance.

Answers

Answer:

The adjusted balance is equal to the estimate of the uncollectible accounts receivable.

Explanation:

Receivable in economics is simply whenbusiness sells goods or services to another party on account usually on credit. It is also known as a monetary claim usually against a business or an individual.

Accounts receivable

Is simply defined as the power to the right to receive cash in the future from customers for goods or services performed. They can be called claim of right, exchange consideration, and a claim for the future.

The supplementary record that contains information on each customer is the accounts receivable ledger.

The goal for the accounts receivable methods is to adjust the Allowance for Doubtful Accounts balance making the adjusted balance is equal to the estimate of the uncollectible accounts receivable.

Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers. The following information relates to its budgeted operations for the current year.
Commercial Residential
Revenues $328,000 $514,000
Direct materials costs $45,000 $50,000
Direct labor costs 110,000 290,000
Overhead costs 108,000 263,000 199,000 539,000
Operating income (loss) $65,000 $(25,000)
The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more profitable given that the installations of window coverings are less complex for residential customers. In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residential customers. As a result, she has decided to take a closer look at the overhead costs assigned to the two product lines to determine whether a more accurate product costing model can be developed. Here are the three activity cost pools and related information she developed:
Activity Cost Pools Estimated Overhead Cost Drivers
Scheduling and travel $108,000 Hours of travel
Setup time 119,000 Number of setups
Supervision 80,000 Direct labor cost
Estimated Use of Cost Drivers per Product
Commercial Residential
Scheduling and travel 800 550
Setup time 450 250
Compute the activity-based overhead rates for each of the three cost pools. (Round overhead rate for supervision to 2 decimal places, e.g. 0.38.)
Overhead Rates
Scheduling and travel
$enter a dollar amount per dollar rounded to 2 decimal places
per hour
Setup time
$enter a dollar amount per setup rounded to 2 decimal places
per setup
Supervision
$enter a dollar amount per dollar rounded to 2 decimal places

Answers

Answer:

Scheduling and travel= $80 per hour

Setup time= $170 per set up

Supervision= $0.2 per direct labor dollar

Explanation:

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Commercial Residential

Scheduling and travel 800 550= 1,350

Setup time 450 250=700

Direct labor costs 110,000 290,000= $400,000

Scheduling and travel= 108,000 / 1,350= $80 per hour

Setup time= 119,000 / 700= $170 per set up

Supervision= 80,000 / 400,000= $0.2 per direct labor dollar

Many new ventures focusing on craft beer have been launched. If the goal is to make a profit, perhaps it would have been a better choice to forget making the beer and instead focus on the hops market. There is competition for the available supply of hops, and this is especially true of the organic varieties. Cassidy Brewery uses standards to carefully track their costs. For their Hopalong label their standard for hops is 20 pounds per barrel and their standard rate is $13.00 per pound. In the past period they produced 40 barrels of their Hopalong beer using 830 pounds of hops. The hops had a cost of $15.00 per pound. Compute the total rate variance and the total efficiency variance for the past month. Also, for each variance, indicate whether the variance is favorable or unfavorable.

Answers

Answer:

a. Total rate variance = $1,660 Unfavorable

b. Total efficiency variance = $450 Unfavorable

Explanation:

From the question, we have:

Standard for hops = 20 pounds per barrel

Standard rate = Standard rate for hops = $13.00 per pound

Barrels of Hopalong beer produced = 40

Actual quantity = Actual pounds of hops used = 830 pounds

Standard quantity = Standard pounds of hops = Standard for hops * Barrels of Hopalong beer produced = 20 * 40 = 800 pounds

Actual rate = Actual cost of hops per pound = $15

Therefore, we have:

a. Compute the total rate variance for the past month

Total rate variance = (Actual rate - Standard rate) * Actual quantity = ($15 - $13) * 830 = $1,660 Unfavorable

The total rate variance of $1,660 is unfavorable because the Actual rate is greater than the Standard rate.

b. Compute the total efficiency variance for the past month

Total efficiency variance = (Actual quantity - Standard quantity) * Standard rate = (830 - 800) * $15 = $450 Unfavorable

The total efficiency variance of $450 is unfavorable because the Actual quantity is greater than the Standard quantity.

a. As far as the tax code is concerned, HeadBook will increase its expenses by $5,000 in either case. If it pays for the policy, it incurs a $5,000 health care expense. If it raises Vanessa’s salary by $5,000, it incurs $5,000 of salary expense. If HeadBook is profitable and pays corporate profit taxes at a marginal 35 percent rate, by how much will HeadBook’s tax liability be reduced in either case?

Answers

Answer: $1,750

Explanation:

Incurring a health insurance cost of $5,000 or increasing salaries by $5,000 will have the same effect on the taxes because they will both be removed from the income before the taxes are calculated.

The reduction in tax in either case is:

= Expense * Tax rate

= 5,000 * 35%

= $1,750

What do we call the principle that costs of production will increase by the inefficient reallocation of specialized resources for the production of additional goods for which there sources are not well suited?

A the law of natural economics

B the law of market regulation

C the law of macro-economic control

D the law of increasing opportunity costs​

Answers

Answer:

the law of market regulation

Explanation:

i did this in my business class

What exactly allows individuals to consume more if they specialize and trade than if they don't

Answers

Answer:

They work within the company that allows them to do so. Vs. others that don't.

Explanation:

Hope this helps! plz mark as brainliest!

each time mayberry nursery hires a new employee, it must wait for some period of time before the employee can meet production standard. Management is unsure of the learning curve in its operations but it knows the first job by a new employees averages 40 hours and the second job averages 32 hours. assume all jobs to be equal in size. what is the learning curve percentage, assuming the incremental unit time learning model

Answers

Answer:

Learning percentage = 1.6%

Explanation:

Given - Each time may berry nursery hires a new employee, it must wait for some period of time before the employee can meet production standard. Management is unsure of the learning curve in its operations but it knows the first job by a new employees averages 40 hours and the second job averages 32 hours. assume all jobs to be equal in size.

To find - What is the learning curve percentage, assuming the incremental unit time learning model.

Proof -

First job = 40 hours

Second job = 32 hours

Now,

Job           Job hours               Cumm. of hours               Incremental av. hours

1                    40                              40                                        40

2                    32                             72                                         64

Learning percentage = [tex]\frac{64}{40}[/tex] = 1.6%

How do you construct a General Journal.​

Answers

At a minimum, an accounting journal entry should include the following:
The accounts into which the debits and credits are to be recorded.
The date of the entry.
The accounting period in which the journal entry should be recorded.
The name of the person recording the entry.
Any managerial authorization(s)
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