Molson used a differentiated marketing strategy to reach existing markets with its new product.
Differentiated marketing strategy refers to the process of designing specific product campaigns to attract different customer segments. Molson beer company launched two different brands, Arctic brand in Ontario and Tornade brand in Quebec, with the intention of gaining a share of the rapidly expanding alcoholic lemonade segment of the beverage industry. The separate launch strategies for the products are due to different market conditions in the two Canadian provinces.
The differentiated marketing strategy is effective because it focuses on developing and delivering products that meet the needs of specific groups of customers.The Molson beer company used the differentiated marketing strategy to reach existing markets with its new product. The Arctic brand was launched in Ontario while the Tornade brand was launched in Quebec. Both provinces had different market conditions, hence the different launch strategies.
The company used different promotional and advertising campaigns for each brand, which made it possible to reach different customers. As a result, Molson managed to gain a share of the rapidly expanding alcoholic lemonade segment of the beverage industry.
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Many not-for-profit (NFP) organizations are charities
that collect funds for special purposes. An example would be a
research foundation that seeks a cure for cancer. To protect
investors, business or
To safeguard their investments, investors and businesses should conduct extensive research before making any financial commitments to such organizations.
Many not-for-profit organizations are charities that collect funds for special purposes. An example of such an organization is a research foundation that seeks a cure for cancer. Business or investment participants should always protect themselves by doing their own research. Funds refer to money that is made available for a specific purpose. A financial contribution to a person or organization to support a specific objective is referred to as funding. Fundraising is one of the ways a not-for-profit organization can obtain funds. Research refers to the systematic examination of data, knowledge, or information to establish or validate facts. In most cases, the research aims to advance the existing knowledge of a given subject or provide solutions to existing problems. Research foundations such as the one described in the question conduct extensive research with the primary goal of finding a cure for cancer.NFP organizations are established to achieve specific goals, such as funding research or promoting community development, and not for profit.
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Suppose you have a market for baseballs which is currently in equilibrium. Thinking of the supply and demand graph for this market, what would have to happen to cause both the equilibrium quantity of baseballs in this market to fall and the equilibrium price of baseballs in this market to fall?
A combination of factors that decrease both demand and supply for baseballs would cause a decrease in the equilibrium quantity and price of baseballs in the market.
To cause both the equilibrium quantity and price of baseballs in the market to fall, there must be a simultaneous shift in both the supply and demand curves. Several factors could contribute to such a change.
On the demand side, a decrease in consumer preferences for baseball or a decrease in the number of people interested in playing or watching the sport could lead to a decrease in demand for baseballs. This would result in a leftward shift of the demand curve.
On the supply side, factors such as an increase in the cost of producing baseballs, a decrease in the availability of raw materials used in their production, or a decrease in the number of suppliers in the market could cause a decrease in the supply of baseballs. This would lead to a leftward shift of the supply curve.
If both the demand and supply curves shift to the left, the new equilibrium quantity and price will be lower than the initial equilibrium. The decrease in demand and supply would put downward pressure on the price of baseballs, as consumers' willingness to pay decreases while suppliers' production capacity decreases.
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Nolan Company's cash account shows a $24,767 debit balance and its bank statement shows $24.845 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,468. b. The June 30 bank statement lists $27 in bank service charges; the company has not yet recorded the cost of these services G. In reviewing the bank statement, a $50 check written by the company was mistakenly recorded in the company's books as $59. d. June 30 cash receipts of $2.405 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement e. The bank statement included a $33 credit for interest earned on the company's cash in the bank. The company has not yet recorded interest earned. Prepare a bank reconciliation using the above information. NOLAN COMPANY Bank Reconciliation June 30 Book balance Add: Bank statement balance Add: Deduct Deduct: Adjusted bank balance Adjusted book balance < Prev 22 of 24 !!! Next >
The bank reconciliation for Nolan Company:
NOLAN COMPANY
Bank Reconciliation
June 30
Book Balance
$24,767
Add:
* Deposit in the night depository, not yet recorded by bank $2,405
* Interest earned, not yet recorded by company $33
Total
$27,605
Less:
* Outstanding checks $2,468
* Bank service charges $27
* Check written for $50, mistakenly recorded as $59 $9
Adjusted bank balance
$25,065
Adjusted book balance
$25,065
The bank reconciliation shows that the difference between the book balance and the bank balance is due to outstanding checks, bank service charges, and a check that was mistakenly recorded in the books. The adjusted bank balance and the adjusted book balance are equal.
The book balance is the balance of the cash account in the company's general ledger. The bank balance is the balance of the company's checking account as shown on the bank statement. The difference between the book balance and the bank balance is due to a number of factors, including:
Outstanding checks: Checks that have been written by the company but have not yet cleared the bank.
Deposits in transit: Deposits that have been made by the company but have not yet been credited to the company's account by the bank.
Bank errors: Errors made by the bank, such as posting a deposit to the wrong account or charging a fee that was not authorized by the company.
Errors made by the company: Errors made by the company, such as writing a check for the wrong amount or not recording a deposit.
The bank reconciliation is a process of reconciling the book balance and the bank balance to determine the correct amount of cash that the company has on hand. The bank reconciliation is prepared by comparing the bank statement to the company's cash account in the general ledger. Any differences between the two are investigated and adjusted. The adjusted book balance and the adjusted bank balance should be equal.
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in panel (a), which of the following statements is not correct? a. at e1, the economy is in full employment. b. at e2, unemployment rate rises and jobs are scarce. c. at e2, the economy faces a stagflation crisis. d. at e1, the actual unemployment rate is equal to the natural rate of unemployment.
The statement that is not correct in panel (a) is d. At e₁, the actual unemployment rate is equal to the natural rate of unemployment.
In panel (a), point e₁ represents full employment where the economy is operating at its potential output and the unemployment rate is equal to the natural rate of unemployment. Therefore, statement d is incorrect because at e₁, the actual unemployment rate is not necessarily equal to the natural rate of unemployment.
Statements a, b, and c are correct. At e₁, the economy is in full employment (statement a). At e₂, the unemployment rate rises and jobs are scarce (statement b). At e₂, the economy faces a stagflation crisis, which is a combination of high inflation and high unemployment (statement c).
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Suppose you decide to use limit orders instead of market orders. On August 19, you put in a limit order to buy 900 shares of BRAN at $15.01 per share. On August 20, you put in a limit order to sell 900 shares of BRAN at $15.03 per share. Both orders were executed on their respective days. Assuming no brokerage commissions, how much of a gain or loss did you make? (Round to two decimal places.)
The gain or loss you made is $1.80. Firstly, the purchase is made on August 19, so it is necessary to determine the cost of purchasing 900 shares.
The cost of purchasing 900 shares is calculated as follows:$15.01 × 900 = $13,509We can now move on to August 20th, when 900 shares were sold at $15.03 per share. To determine the proceeds, we use the following equation:$15.03 × 900 = $13,527Subtract the purchase cost of $13,509 from the sale proceeds of $13,527 to get:$13,527 − $13,509 = $18Therefore, you made a profit of $18. However, it's worth noting that the profit earned could be eaten up by brokerage commissions if they were applied to the transactions. Additionally, it is worth noting that a limit order may not be executed if the stock does not reach the desired price. As a result, market orders are frequently utilized to execute trades immediately.
Furthermore, in situations where the price of a stock is rapidly changing, it may be difficult to execute limit orders since the stock may not remain at the target price for long enough to complete the order.
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If the University Chamber Music Society decides to raise ticket prices to acquire more funds to finance concerts, the Society is assuming that the demand for tickets is: A. parallel to the horizontal axis B. shifting to the left C. unit-elastic D. inelastic
"If the University Chamber Music Society decides to raise ticket prices to acquire more funds to finance concerts, the Society is assuming that the demand for tickets is inelastic. The correct answer is D.
A shift in demand for a good or service occurs when, for whatever reason, people purchase a different quantity of that good or service at each price point. The demand curve is a visual representation of the relationship between the quantity demanded and the price.
If a firm increases its price, the quantity demanded will decrease, which will be reflected by a movement along the demand curve, known as a change in quantity demanded. On the other hand, a shift in demand is represented by a shift in the entire curve.
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were any traits under directional selection for smaller phenotypic values?
Foot length is the only trait that appears to be under directional selection for smaller phenotypic values. Whereas the other mentioned traits were not selected for smaller values in the search results. Thus, option c) is correct.
Directional selection is a mode of natural selection in which an extreme phenotype is favored over other phenotypes, causing the allele frequency to shift over time in the direction of that phenotype.
Under directional selection, relative fitness increases as the value of a trait decreases. This means that if a trait is under negative directional selection, smaller phenotypic values are favored over larger ones.
None of the other traits listed in the question (mass, body length, leg length, shoulder height) were mentioned in the search results as being under directional selection for smaller phenotypic values. However, it is important to note that the search results may not be comprehensive and there may be other studies or sources of information that provide different results.
In conclusion, foot length appears to be the only trait under directional selection for smaller phenotypic values, while the other traits listed in the question were not mentioned in the search results as being under directional selection for smaller phenotypic values. Thus, option c) is correct.
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Complete Question:
Were any traits under directional selection for smaller phenotypic values? (A negative sloped trend line). Select all that apply:
a) Mass
b) Body Length
c) Foot Length
d) Leg Length
e) Shoulder Height
f) None
21) Your company needs a quick infusion of cash. You decide to put $10,000 of your own money into the business checking account. On QuickBooks’ Bank Deposit page, you select Checking in the Account field and enter the date. What do you do next?
A In the "Add Funds to this Deposit" section, choose Owner in the Received From column, and choose Checking from the drop-down list in the Account column.
B In the "Add Funds to this Deposit" section, skip the Received From column, and choose Owner’s Draw from the drop-down list in the Account column.
C In the "Add Funds to this Deposit" section, skip the Received From column, and choose Owner’s Equity from the drop-down list in the Account column.
D In the "Add Funds to this Deposit" section, choose Owner in the Received From column, and choose Cash from the drop-down list in the Account column.
19) Which of the following statements about converting a sub-customer to a project in QuickBooks is true?
A Once a sub-customer is converted to a project, the process is not reversible.
B A project can be converted to a sub-customer but not the other way around.
C Financial information will remain with the sub-customer while transaction information will convert to the project format.
D QuickBooks recommends using sub-customers rather than projects to track transactions.
17) Which account balances are transferred to Retained Earnings during the closing process?
A Accounts Receivable
B Liabilities
C Revenues and Expenses
D Assets
16) There are several valuable reports you can run to evaluate your business performance. Intuit has grouped these reports for easy access in the Management reports tab. Which two reports are grouped in Company Overview?
A Profit and Loss, A/R Aging Detail.
B Profit and Loss, Expenses by Vendor Summary.
C Profit and Loss, Sales by Customer Summary.
D Profit and Loss, Balance Sheet.
21) In the "Add Funds to this Deposit" section, choose Owner in the Received From column, and choose Checking from the drop-down list in the Account column. This is what you would do next.
19) Once a sub-customer is converted to a project, the process is not reversible. This statement is true.17) Which account balances are transferred to Retained . Revenues and Expenses are the account balances that are transferred to Retained Earnings during the closing process. This is the right answer.
16) There are several valuable reports you can run to evaluate your business performance. Intuit has grouped these reports for easy access in the Management reports tab. The Profit and Loss and the Balance Sheet are grouped in Company Overview. This is the correct answer.
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Cotton Company issued $500,000 of 7%, 10-year bonds on one of its interest dates for $431,850 to yield an effective annual rate of 9%. The effective-interest method of amortization is used. Interest is paid annually.
What amount of discount (to the nearest dollar) should be amortized for the first interest period?
a. $4,770
b. $6,133
c. $7,732
d. $3,867
Based on the given data, the amount of discount (to the nearest dollar) should be amortized for the first interest period is D. $3,867.
The face value of the bonds issued by Cotton Company is $500,000. The amount at which the bonds are issued is $431,850. The difference between the face value and the amount issued will be considered as discount:
Discount = $500,000 - $431,850 = $68,150.
The bonds are sold at a discount and therefore the effective annual rate is more than the stated rate i.e. 9%.
To find out the amount of discount that should be amortized for the first interest period we will use the below formula:
Interest expense = Carrying value × Effective interest rate
Carrying value = $431,850 × (1 - 0/20) = $431,850
Interest expense = $431,850 × 9% = $38,863.
The interest paid annually will be $35,000
Therefore, the discount amortized will be:
Interest expense - Interest paid= $38,863 - $35,000= $3,863
The amount of discount to the nearest dollar that should be amortized for the first interest period is $3,867 (rounded off to the nearest dollar).
Therefore, D is the correct option.
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Conducting your own investigation, discuss and analyse ONE of the following issues (choose one only):
a. A financial market heavily affected by imperfect information. Identify a specific real- world market (e.g. current lending market conditions in Greece) as your case study. Carefully identify and explain the key problems arising from asymmetric information and uncertainty in that market. Support your analysis with evidence, including data. Analyse existing policies and discuss policy alternatives to improve economic efficiency. Support your analysis with data.
b. A negative externality. Find a real world example of a substantial negative externality. Present your case very carefully explaining the key issue using evidence. Discuss policy alternatives for bringing a Pareto-improvement into the economy. Compare your policy alternatives with the actual policy being used (if any). Compare it with policies used in other parts of the world. Conclude on the best policy option, or the cost-benefit of each.
c. A positive externality. Find a real world example of a substantial positive externality. Present your case very carefully explaining the key issue using evidence. Discuss policy alternatives for bringing a Pareto-improvement into the economy. Compare your policy alternatives with the actual policy being used (if any). Compare it with policies used in other parts of the world. Conclude on the best policy option, or the cost-benefit of each
d. A case in which the provision of a (non-existent) public good could be justified. Identify specific real-world case in space-time (e.g. the current need of providing a bridge in Margaret River, WA). Carefully present your case, explaining why the public good is inexistent and the economic efficiency implications of its provision. Discuss a method for obtaining information to conclusively confirm that the public good should be provided. Propose a detailed plan for providing the public good; discuss alternative policies that can be used for it and how alike public goods have been provided in other locations.
We can see here that the issue we will choose and discuss is c. A positive externality.
What is a positive externality?A Real-World Example of a Positive Externality: Education
Education is often cited as a significant positive externality. When individuals acquire education and knowledge, the benefits extend beyond the individual learner and spill over to society as a whole.
The positive externalities of education can manifest in various ways, including increased productivity, improved public health, reduced crime rates, and enhanced civic engagement.
Positive externalities of education can be observed in multiple contexts worldwide. Let's take the example of investing in early childhood education programs.
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Journalize the entries to record the following selected equity Investment transactions completed by Yerbury during a recent year:
Feb. 2 Purchased for cash 1,300 shares of Wong Inc. stock for $49 per share plus a $650 brokerage commission. Received dividends of $0.30 per share on Wong Inc. stock. Mar. 16 June 7 Purchased 900 shares of Wong Inc. stock for $59 per share plus a $450 brokerage commission. July 26 Sold 1,500 shares of Wong Inc. stock for $63 per share less a $750 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.40 per share on Wong Inc. stock.
Feb. 2: Debit Investment in Wong Inc. Stock $64,350, Debit Brokerage Commission Expense $650, Credit Cash $64,000 | Feb. 2 (dividend received): Debit Cash $390, Credit Dividend Income $390 | Mar. 16: Debit Investment in Wong Inc. Stock $53,550, Debit Brokerage Commission Expense $450, Credit Cash $53,100 | June 7 (dividend received): Debit Cash $270, Credit Dividend Income $270 | July 26: Debit Cash $93,750, Debit Brokerage Commission Expense $750, Debit Investment in Wong Inc. Stock $10,600, Credit Gain on Sale of Investments $83,150 | Sept. 25 (dividend received): Debit Cash $520, Credit Dividend Income $520
What Is "first-in, first-out" (FIFO) Method? How We Calculated Debit Investment Etc"First-in, first-out" (FIFO) is a cost flow assumption where the oldest inventory items are assumed to be sold or used first, resulting in the cost of goods sold (COGS) being based on the earliest inventory purchases.
To record the selected equity investment transactions completed by Yerbury, the following journal entries can be made:
Feb. 2:
- Cash: 1,300 shares x $49 = $63,700
- Investment in Wong Inc. Stock: $63,700
- Brokerage Commission Expense: $650
Feb. 2 (dividend received):
- Cash: 1,300 shares x $0.30 = $390
- Dividend Income: $390
Mar. 16:
- Cash: 900 shares x $59 = $53,100
- Investment in Wong Inc. Stock: $53,100
- Brokerage Commission Expense: $450
June 7 (dividend received):
- Cash: 900 shares x $0.30 = $270
- Dividend Income: $270
July 26:
- Cash: 1,500 shares x $63 = $94,500
- Brokerage Commission Expense: $750
- Investment in Wong Inc. Stock: $63,700 - $53,100 = $10,600 (cost of shares sold)
- Gain on Sale of Investments: $94,500 - $10,600 - $750 = $83,150
Sept. 25 (dividend received):
- Cash: 1,300 shares x $0.40 = $520
- Dividend Income: $520
Note: The assumption made is that the first investments purchased are the first investments sold, following the "first-in, first-out" (FIFO) method for determining the cost of shares sold.
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Budget planners for a certain community have determined that $8,463,000 will be required to provide all government services next year. The total assessed property value in the community is $130,000,000. What tax rate is required to meet the budgetary demands? (Express your answer as a tax rate per $100 to two decimal places rounded up.)
Calculate the assessed value (in $) and the property tax due (in $) on the property. (Round your answers to the nearest cent.)
Fair Market value Assessment rate Assessed Value Property Tax Rate Property Tax Due
$342,900 79 5.7%
For a property with a fair market value of $342,900 and an assessment rate of 79, the assessed value would be $270,471, and the property tax due would be $15,424.79.
To calculate the tax rate required to meet the budgetary demands, we can use the following formula:
Tax Rate = (Budget / Assessed Property Value) * 100
In this case, the budget is $8,463,000, and the assessed property value is $130,000,000. Plugging these values into the formula, we get:
Tax Rate = ($8,463,000 / $130,000,000) * 100 ≈ 6.51%
Therefore, the tax rate required to meet the budgetary demands is approximately 6.51% per $100.
To calculate the assessed value and the property tax due on a property, we need to multiply the fair market value by the assessment rate to get the assessed value. Then, we multiply the assessed value by the property tax rate to get the property tax due.
Let's say we have a property with a fair market value of $342,900 and an assessment rate of 79. The assessment rate represents the percentage of the fair market value used to determine the assessed value.
Assessed Value = Fair Market Value * (Assessment Rate / 100)
Assessed Value = $342,900 * (79 / 100) ≈ $270,471
Next, we need to calculate the property tax due using the property tax rate, which is 5.7%:
Property Tax Due = Assessed Value * (Property Tax Rate / 100)
Property Tax Due = $270,471 * (5.7 / 100) ≈ $15,424.79
Therefore, for a property with a fair market value of $342,900 and an assessment rate of 79, the assessed value would be approximately $270,471, and the property tax due would be approximately $15,424.79.
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impact on the dispatch rules on the operation performance and
relate back to Operations Strategy
Dispatch rules in operations management refer to the set of guidelines or algorithms used to allocate resources, schedule tasks, or prioritize orders within a production system.
The choice of dispatch rules can have a significant impact on operational performance and align with the broader operations strategy of a company. Here are some key points to consider:
Efficiency and Utilization: Dispatch rules influence how effectively and efficiently resources are utilized within the production system. Different rules may prioritize tasks based on factors such as due dates, setup times, or order size. By selecting dispatch rules that optimize resource allocation, companies can improve efficiency, reduce idle time, and enhance overall operational performance.Throughput and Lead Time: Dispatch rules can affect the flow of work and impact throughput and lead time. Some rules prioritize tasks with shorter processing times or minimize setup/changeover times, aiming to reduce lead time and increase the speed of order fulfillment. By considering factors such as task sequencing and priority, companies can streamline operations and improve customer satisfaction through shorter lead times.Quality and Variability: Dispatch rules can also impact quality control and the handling of variability in operations. For example, some rules may prioritize tasks that require specific equipment or skills, reducing the risk of errors or defects. By implementing dispatch rules that consider the variability of tasks and allocate resources accordingly, companies can enhance quality control and minimize the likelihood of mistakes.Flexibility and Adaptability: Dispatch rules can be tailored to reflect the operations strategy of a company, which may prioritize flexibility and adaptability to meet changing customer demands or market conditions. Flexible dispatch rules allow for the adjustment of resource allocation in response to disruptions or changes in priority. This adaptability supports agile operations and can help companies maintain a competitive edge.Customer Satisfaction: Dispatch rules play a crucial role in meeting customer expectations and delivering products or services on time. By selecting rules that prioritize tasks based on customer due dates or service level agreements, companies can enhance customer satisfaction and build customer loyalty. This aligns with an operations strategy focused on customer-centricity and responsiveness.In summary, dispatch rules have a direct impact on operational performance by influencing efficiency, throughput, lead time, quality control, flexibility, and customer satisfaction. The selection of dispatch rules should align with the broader operations strategy, considering factors such as resource utilization, responsiveness to changing demands, and the overall customer experience. By optimizing dispatch rules, companies can improve operational performance and gain a competitive advantage in the market.
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Which is considered the most sensitive short term interest rate?
The most sensitive short-term interest rate is the Federal Funds Rate.
The Federal Funds Rate is the interest rate at which depository institutions lend reserve balances to other depository institutions overnight. It is set by the Federal Reserve as a tool to manage monetary policy and influence economic conditions. This interest rate is considered the most sensitive because it directly impacts the borrowing costs for banks and has a ripple effect on other short-term interest rates in the financial system.
Changes in the Federal Funds Rate can have a significant impact on various sectors of the economy, including consumer loans, mortgages, credit cards, and business borrowing, making it a crucial indicator of monetary policy and overall economic conditions.
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Brinker International operates restaurants in several different segments of the casual dining
market. This is
a. a relatively high level of diversification.
b. an example of product diversification.
c. unlikely to reduce variability in the firm's profitability since the restaurants are all in the
casual dining category.
d. an example of related linked diversification.
Brinker International runs restaurants in a variety of casual dining market sectors. This is a b. product diversification example.
Product diversification is a business strategy that involves developing and launching a new line of products, a service, or a product division that employs the same or completely different sets of information, skills, machinery, and so on, usually to ensure survival or development and expansion.
Businesses must keep a close watch on current market trends and product success in order to remain relevant and profitable.
When a company sees an opportunity to broaden its product lines for increased marketability, it typically engages in a process known as product diversification.
Product diversification can help businesses expand their brand's presence by broadening a product's current market.
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Prior to recording the following, Elite Electronics, Inc., had a credit balance of $2,800 in its Allowance for Doubtful Accounts. a. On August 31, a customer balance for $380 from a prior year was determined to be uncollectible and was written off b. On December 15, the customer balance for $380 written off on August 31 was collected in full. Required: For each transaction listed above, indicate the amount and direction (+ for increase, - for decrease) of effects on the financial statement accounts and on the overall accounting equation. Hint: On December 15th, first reinstate the Accounts receivable and then record the collection of cash. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.)
a. Allowance for Doubtful Accounts: +$380, Accounts Receivable: -$380
b. Accounts Receivable: +$380, Allowance for Doubtful Accounts: -$380, Cash: +$380.
a. Exchange on August 31:
Stipend for Far fetched Records: +$380 (Increment) [Reduces the credit surplus in the recompense account]
Debt claims: - $380 (Abatement) [Reduces the sum owed by the customer]
Net Records Receivable (Resource): No impact
In general Bookkeeping Condition: No impact
b. Exchange on December 15:
Debt claims: +$380 (Increment) [Reinstates the recently discounted amount]
Stipend for Dicey Records: - $380 (Decline) [Reduces the credit surplus in the recompense account]
Cash: +$380 (Increment) [Represents the assortment of cash]
Net Records Receivable (Resource): No impact
In general Bookkeeping Condition: No impact
In outline, the principal exchange diminishes the remittance for dubious endlessly money due, while the subsequent exchange reestablishes the records receivable and lessens the stipend account. The general bookkeeping condition stays unaltered in the two exchanges.
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An increase in demand in a perfectly competitive, increasing cost industry will ultimately result in a price that is the original price Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answet. a higher than b less than с equal to d elther higher than or equal to
In a highly competitive industry with rising costs, an increase in demand will ultimately result in a price that is higher than the original price. Option A is correct.
According to economic theory, perfect competition occurs when all businesses sell the same products, market share has no effect on price, businesses can enter or exit freely, buyers have complete or perfect information, and businesses cannot set prices.
Perfect competition exists when sellers are price takers, there are many sellers, products are identical between sellers, and firms can easily enter and exit the market.
There are numerous buyers and sellers in a market with perfect competition, and prices reflect supply and demand. Organizations acquire barely sufficient benefit to remain in business and no more. Other businesses would enter the market and reduce profits if they made too much money.
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Complete question as follows:
An increase in demand in a perfectly competitive, increasing cost industry will ultimately result in a price that is the original price .Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a higher than
b less than
с equal to
d either higher than or equal to
Stella Liebeck, an elderly grandmother, received third-degree burns when she spilled coffee purchased at a McDonald's drive-through. At trial, experts testified that McDonald's coffee was too hot to be consumed at the point of purchase, was hotter than any other restaurant's coffee or coffee brewed at home, and was so hot that third-degree burns would result within three to five seconds of coming into contact with the skin. McDonald's also conceded that the coffee was brewed extremely hot for commercial (profit) reasons, because most customers wanted coffee to be hot throughout their commute. After finding the company liable, the jury awarded Mrs. Liebeck two days' worth of coffee sales at McDonald's, an amount equivalent to $2.7 million, in punitive damages. The award, although reduced to much less than that, set off a firestorm of criticism that has not died down to this day. Hence, now why your coffee cups say "Caution Hot". Do you believe that it's possible for coffee to be unreasonably dangerous? Find this information through the internet and write your answers and cite your sources. • What was the tort committed here? . Was there duty owed? • Do you believe that the jury's award of $2.7 million for third-degree burns was excessive? Why do you believe that such an award is necessary? Can you identify any standards which have changed in the industry based upon this case? • What ethical issues come to mind when you think of this case?
The tort committed in the given case is negligence.
A tort is a legal term that refers to an action that causes harm to another person resulting in the violation of another person's rights. In this case, the tort committed by McDonald's was negligence. The McDonald's owes a duty of care to its customers, and it is essential to determine if there was a breach of that duty in this case. The issue of whether a duty of care existed was central to the case, and the jury ultimately concluded that it did. McDonald's was responsible for ensuring that its coffee was reasonably safe for its customers to consume. The temperature of the coffee was far too hot, making it unreasonably dangerous and capable of causing severe burns.
The jury's award of $2.7 million for third-degree burns was not excessive because it was necessary to hold McDonald's accountable for its negligence. The jury found that the temperature of the coffee was unreasonably hot and that it posed a significant risk to the safety of McDonald's customers. The award was necessary to hold McDonald's accountable for its negligence and to compensate the plaintiff for the harm she suffered. Ethical issues that come to mind when thinking of this case include corporate responsibility, consumer protection, and the role of government in regulating businesses that provide goods and services to the public. Companies have an ethical obligation to ensure that their products are safe and do not pose unreasonable risks to the public.
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Which of the following is not one of the sources of natural market power? O A. Controlling a key resource. OB. Having individual expertise in a field. OC. Network externalities. D. Owning a firm in a small community.
Owning a firm in a small community is not one of the sources of natural market power. Option D is the correct answer.
A natural monopoly constitutes a monopoly in an industry when high infrastructure costs and other obstacles to entry compared to the size of the market provide the biggest vendor in an industry, frequently the first provider in an industry, with a substantial advantage over potential rivals. Option D is the correct answer.
Particularly if the overall cost of one firm producing the entire production is lower than the total cost of multiple businesses generating the exact same quantity of output, the sector is considered to possess a natural monopoly. If so, it is likely that one company (a monopoly) or a few companies (an oligopoly) will arise and offer all or the bulk of the pertinent goods and/or services.
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Dolphin Foods offers 7.5 percent coupon bonds with a yield to maturity of 7.68 percent. The 15 year bonds mature in 8 years. What is the market price per bond?
The market price per bond for a 15 year bond maturing in 8 years with a coupon rate of 7.5% and YTM of 7.68% will be $939.84.
In order to calculate the market price per bond, we need to use the formula:
V = PVIFA * PMT * n + FV * PVIF
Where,
V = Market value of the bondn = number of periods = 15-8 = 7 yearsPMT = Interest paymentFV = Face valuePVIFA = Present Value Interest Factor for an annuityPVIF = Present Value Interest FactorFrom the given details, we can find out:
Interest rate (YTM) = 7.68%Annual coupon rate = 7.5%Face Value (FV) = $1,000Number of years to maturity = 15 yearsNumber of years to next call date = 8 yearsNumber of years between next call date and maturity = 7 yearsThus,Annual interest payment (PMT) = (7.5 / 100) * 1000 = $75
Next, we calculate PVIF and PVIFA.
PVIF = 1 / (1 + r)n
PVIFA = (1 - 1 / (1 + r)n) / r
where,
r = Interest rate per periodn = number of periodsWe need to find the present value of an annuity for 7 years.
PVIFA = (1 - 1 / (1 + r)n) / r= (1 - 1 / (1 + 0.0768 / 2)14) / (0.0768 / 2)= 5.0139
Next, we calculate PVIF for 7 years.
PVIF = 1 / (1 + r)n= 1 / (1 + 0.0768 / 2)14= 0.5580
Now, we can calculate the market value of the bond.
V = PVIFA * PMT * n + FV * PVIF= 5.0139 * 75 * 7 + 1000 * 0.5580= $939.84
Hence, the market price per bond is $939.84.
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The spot exchange rate is 1.57 dollars per pound. The 30-day
forward exchange rate is 1.61 dollars per pound. Compute the
percent per annum premium or discount.
The spot exchange rate is 1.57 dollars per pound. The 30-day percent per annum premium or discount. What is spot exchange rate?
The spot exchange rate is the rate at which a currency may be traded for immediate delivery. It is the present exchange rate of one currency in terms of another currency. The rate at which currencies are exchanged on the spot market is known as the spot exchange rate.
What is a premium or discount? A premium is the amount by which the forward rate exceeds the spot rate. This can happen when there is an increased demand for a currency. A discount occurs when the forward rate is less than the spot rate. This can happen when there is a reduced demand for a currency.What is percent per annum?The term “percent per annum” refers to the interest rate charged over a year's time frame. In other words, it is the percentage of the original amount of money borrowed or invested that is paid out over a year. It is expressed as a percentage.The 30-day percent per annum premium or discount can be calculated using the following formula:Premium/discount = (Forward rate - Spot rate)/Spot rate x (360/t)Where:t = number of days in the period of the forward contract. In this case, t = 30 days.Substituting the given values into the formula:Premium/discount = (Forward rate - Spot rate)/Spot rate x (360/t) = (x - 1.57)/1.57 x (360/30) = 0.085x - 10.44%.Thus, the 30-day percent per annum premium or discount is 0.085x - 10.44%.
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Current Liabilities Bon Nebo Co. sold 17,500 annual subscriptions of Bjorn for $51 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the
Bon Nebo Co. will make a quarterly tax payment of $388,000 on April 12, 20Y6, based on their taxable income of $970,000 during the first calendar quarter of 20Y6 and the federal tax rate of 40%.
In order to calculate the quarterly tax payment for Bon Nebo Co., we need to determine the taxable income for the first calendar quarter of 20Y6 and apply the federal tax rate of 40%.
Let's break down the calculations step by step.
First, we need to calculate the revenue generated from the annual subscriptions of Bjorn. Bon Nebo Co. sold 30,000 annual subscriptions for $105 each in December 20Y5.
Therefore, the total revenue from these subscriptions can be calculated as follows:
Total Revenue = Number of Subscriptions * Price per Subscription
Total Revenue = 30,000 * $105
Total Revenue = $3,150,000
Since these subscriptions are for the entire year, the revenue should be recognized over the course of the year.
Therefore, for the first calendar quarter of 20Y6 (January to March), the recognized revenue can be calculated as follows:
Recognized Revenue =[tex]Total Revenue * (Number of Months in the Quarter / Number of Months in a Year)[/tex]
Recognized Revenue = [tex]$3,150,000 * (3/12)[/tex]
Recognized Revenue = $787,500
Next, we need to determine the taxable income for the first calendar quarter of 20Y6.
It is given that the business had a taxable income of $970,000 during this period. Therefore, the taxable income for the first quarter is $970,000.
Now, we can calculate the quarterly tax payment using the federal tax rate of 40% applied to the taxable income:
Quarterly Tax Payment = Taxable Income * Tax Rate
Quarterly Tax Payment =[tex]$970,000 * 0.4[/tex]
Quarterly Tax Payment = $388,000
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Question: Bon Nebo Co. sold 30,000 annual subscriptions of Bjorn for $105 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $970,000 during the first calendar quarter of 20Y6. The federal tax rate is 40%. A quarterly tax payment will be made on April 12, 20Y6.
Q3. a) MM Ltd is a British sports-fashion retail company based in Bury, Greater Manchester, England. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. MM Ltd currently has £60 million in debt outstanding. In addition to 7% interest, it plans to repay 10% of the remaining balance each year. If MM Ltd has a marginal corporate tax rate of 19%, and if the interest tax shields have the same risk as the loan, what is the present value of the interest tax shield from the debt?
The present value of the interest tax shield from the debt for MM Ltd is approximately £744,462.86.
To calculate the present value of the interest tax shield from the debt, we need to consider the tax shield effect of the interest payments. The tax shield arises from the tax deduction a company receives on the interest payments it makes on its debt.
Here's how you can calculate the present value of the interest tax shield from the debt for MM Ltd:
Calculate the annual interest expense: Multiply the outstanding debt (£60 million) by the interest rate (7%) to get the annual interest expense.
Annual interest expense = £60 million * 7% = £4.2 million
Calculate the tax shield from the interest expense: Multiply the annual interest expense by the corporate tax rate (19%) to determine the tax shield.
Tax shield = Annual interest expense * Tax rate = £4.2 million * 19% = £798,000
Calculate the present value of the tax shield: Since MM Ltd plans to repay 10% of the remaining balance each year, we can calculate the present value of an annuity that decreases by 10% each year. We'll assume a discount rate (cost of debt) of 7% to match the interest rate.
Using the formula for the present value of an annuity:
Present value of tax shield = Tax shield * [1 - (1 + r)^(-n)] / r
Where:
r = discount rate = 7% = 0.07
n = number of years (assuming a perpetuity, where MM Ltd repays 10% each year indefinitely)
Present value of tax shield = £798,000 * [1 - (1 + 0.07)^(-1)] / 0.07
Present value of tax shield ≈ £798,000 * [1 - (1.07)^(-1)] / 0.07
Present value of tax shield ≈ £798,000 * [1 - 0.9346] / 0.07
Present value of tax shield ≈ £798,000 * 0.0654 / 0.07
Present value of tax shield ≈ £744,462.86
Therefore, the present value of the interest tax shield from the debt for MM Ltd is approximately £744,462.86.
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A Sad Tale: The Demise of Arthur Andersen
In January 2002, there were five major public accounting firms: Arthur Andersen, Deloitte Touche, KPMG, Price Waterhouse-Coopers, and Ernst & Young. By late fall of that year, the number had been reduced to four. Arthur Andersen became the first major public accounting firm to be found guilty of a felony (a conviction later overturned), and as a result it virtually ceased to exist.
That such a fate could befall Andersen is especially sad given its early history. When Andersen and Company was established in 1918, it was led by Arthur Andersen, an acknowledged man of principle, and the company had a credo that became firmly embedded in the culture: "Think Straight and Talk Straight." Andersen became an industry leader partly based on high ethical principles and integrity.
How did a one-time industry leader find itself in a position where it received a corporate death penalty over ethical issues? First, the market changed. During the 1980s, a boom in mergers and acquisitions and the emergence of information technology fueled the growth of an extremely profitable consulting practice at Andersen. The profits from consulting contracts soon exceeded the profits from auditing,
removed him from auditing responsibilities at Enron-in response to a request from Enron management.
Playing Hardball and Losing
The SEC was determined to make an example of Andersen. The U.S. Justice Department began a criminal investigation, but investigators were willing to explore some "settlement options" in return for Andersen's cooperation. However, Andersen's senior management appeared arrogant and failed to grasp the political mood in Congress and in the country after a series of business scandals that had brought more than one large company to bankruptcy.
After several months of sparring with the Andersen senior management team, the Justice Department charged Andersen with a felony offense-obstruction of justice. Andersen was found guilty in 2002 of illegally instructing its employees to destroy documents relating to Enron, even as the government was conducting inquiries into Enron's finances. During the trial, government lawyers argued that by instructing its staff to "undertake an unprecedented campaign of document destruction," Andersen had obstructed the government's investigation.
Since a firm convicted of a felony cannot audit a publicly held company, the conviction spelled the end for Andersen. But even before the guilty verdict, there had been a massive defection of Andersen clients to other accounting firms. The evidence presented at trial showed a breakdown in Andersen's internal controls, a lack of leadership, and an environment in Andersen's Houston office that fostered recklessness and unethical behavior by some partners.
In 2005, the United States Supreme Court unanimously overturned the Andersen conviction on the grounds that the jury was given overly broad instructions by the federal judge who presided over the case. But by then it was too late. Most of the Andersen partners had either retired or gone to work for former competitors, and the company had all but ceased to exist.
Can the demise of Andersen be blamed on the fact that the market began rewarding consulting services of the kind Andersen could provide?
The demise of Arthur Andersen cannot be solely blamed on the market rewarding consulting services. While the growth of the consulting practice at Andersen played a role in the firm's success during the 1980s, it was a combination of factors that led to its downfall.
One major factor was the ethical issues surrounding Andersen's involvement in the Enron scandal. Andersen's auditors were accused of not properly reporting Enron's fraudulent accounting practices, which eventually led to Enron's collapse. The subsequent criminal investigation and charges of obstruction of justice against Andersen tarnished its reputation and resulted in the loss of trust from clients and the public.Andersen's senior management's handling of the situation also contributed to its demise.
The guilty verdict of obstruction of justice sealed Andersen's fate, as a felony conviction prohibited the firm from auditing publicly held companies. However, even before the verdict, many clients had already defected to other accounting firms due to the breakdown in Andersen's internal controls, lack of leadership, and the unethical behavior of some partners in the Houston office. Although the United States Supreme Court later overturned the conviction based on the jury's broad instructions, by that time, Andersen had already suffered irreparable damage. Most partners had retired or joined rival firms, and the company effectively ceased to exist.
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DETAILS ASWMSCI15 16.E.007. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Data collected from selected major metropolitan areas in the eastern United States show that 3% of individuals living within the city limits move to the suburbs during a one-year period, while 2% of individuals living in the suburbs move to the city during a one-year period. Answer the following questions assuming that this process is modeled by a Markov process with two states: city and suburbs. (a) Prepare the matrix of transition probabilities. City Suburbs City Suburbs (b) Compute the steady-state probabilities. City Suburbs 2 (c) In a particular metropolitan area, 45% of the population lives in the city, and 55% of the population lives in the suburbs, What population changes do your steady-state probabilities project for this metropolitan area? The area will show ---Select- vin the city population and -Select-- Yin the suburb population
(a) Preparation of matrix of transition probabilities: City SuburbsCity 0.970.03Suburbs 0.020.98( b) Computation of steady-state probabilities: CitySuburbsCity0.67. Suburbs0.33
Explanation: Markov Chain: A Markov chain is a model for a stochastic process in which the probability distribution of future states depends only on the present state and not on any of the past states. In this model, the state is changed randomly according to a set of transition probabilities.
The process is named after the Russian mathematician Andrey Markov.The given problem can be solved using the Markov Chain Model. The given Markov Chain has two states; City and Suburbs. The probability of moving from City to Suburbs is 3%, while the probability of moving from Suburbs to City is 2%. Using these probabilities, a transition probability matrix is formed, as shown below.
Transition Probability Matrix: CitySuburbsCity0.970.03Suburbs0.020.98Using the matrix, the steady-state probabilities of City and Suburbs can be calculated as shown below. Calculation of Steady State Probabilities:City = (0.02) / (0.02 + 0.03) = 0.4Suburbs = (0.03) / (0.02 + 0.03) = 0.6Therefore, the steady-state probabilities of City and Suburbs are 0.4 and 0.6, respectively.
The result of the steady-state probabilities signifies that the long-term proportion of people in the suburbs is higher than the long-term proportion of people in the city.
Now, to find the population changes of a metropolitan area, let's consider a particular area where 45% of the population lives in the city, and 55% of the population lives in the suburbs. If we apply these population percentages to the steady-state probabilities of City and Suburbs, we can find the expected population changes in the city and suburbs for that metropolitan area as follows.
Calculation of population changes:City population change = (0.4) × (0.45) + (0.02) × (0.55) = 0.2025 or 20.25%Suburb population change = (0.6) × (0.55) + (0.03) × (0.45) = 0.3675 or 36.75%
Therefore, the steady-state probabilities project that the metropolitan area will experience a 20.25% decrease in the city population and a 36.75% increase in the suburb population.
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List and describe four reasons why the Theft of intellectual property is a problem everywhere? And What should be HR’s role regarding intellectual property?
Theft of intellectual property is a global problem due to economic, competitive, security, and reputation concerns. HR should establish policies, train employees, enforce rights, and collaborate with other departments.
The theft of intellectual property is a problem everywhere due to several reasons:
1. Economic Impact: Intellectual property theft undermines innovation and economic growth. When companies' ideas, inventions, and creative works are stolen, it hampers their ability to profit from their investments, discourages further research and development, and harms the overall economy.
2. Competitive Disadvantage: Theft of intellectual property gives unauthorized parties access to valuable knowledge, trade secrets, and proprietary technologies. This allows them to replicate and sell counterfeit products, giving them an unfair advantage in the market, while the original creators suffer from lost sales and market share.
3. National Security Concerns: Intellectual property theft poses national security risks as it can involve sensitive technologies and information. Stolen intellectual property can be used to develop weapons, disrupt critical infrastructure, or compromise defense systems, jeopardizing a country's security and sovereignty.
4. Reputation and Trust: Intellectual property theft damages the reputation and trust of companies. Counterfeit products or plagiarized content can tarnish a brand's image and lead to customer dissatisfaction, eroding consumer trust and loyalty.
Regarding intellectual property, HR's role should involve creating and implementing policies that protect the organization's intellectual assets. This includes educating employees about the importance of intellectual property, confidentiality, and non-disclosure agreements. HR should also ensure that employees are aware of the legal and ethical consequences of intellectual property theft and enforce appropriate disciplinary measures for violations.
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Explain how Consensus Theories of Crime have been used to
explain the sex trade and prostitution and then B) Compare and
contrast Consensus Theories of Crime with Critical Criminological
Theories and
Consensus theories of crime view criminal behavior as a result of a social agreement between individuals and communities regarding what is permissible and what is not. They propose that criminal behavior is a product of social integration and is critical in the functioning of a healthy society. Sex trade and prostitution are frequently linked with organized crime and viewed as societal problems. Consensus theories have been used to explain the sex trade and prostitution by stating that these illegal activities have taken place due to the lack of social control and regulation on the sex trade industry.
Furthermore, they suggest that when society fails to control an industry like prostitution, then such an industry becomes a source of conflict and disorder.Consensus theories of crime contrast sharply with Critical Criminological Theories. Critical Criminological Theories are a group of theories that are concerned with challenging and changing the status quo, questioning the legitimacy of existing criminal justice systems, and identifying and addressing societal inequalities that influence criminal behavior. The theories argue that crime is a result of social inequality, racism, and structural injustices. In contrast, consensus theories of crime assume that the criminal justice system is fair, unbiased, and provides an objective response to crime. In conclusion, consensus theories of crime have been used to explain the sex trade and prostitution by suggesting that these illegal activities occur due to a lack of social control and regulation. Critical Criminological Theories, on the other hand, argue that crime is a result of social inequality, racism, and structural injustices, and calls for changing the status quo.
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Professor Wendy Smith has been offered the following deal: A law firm would like to retain her for an up-front payment of $50,000. In return, for the next year the firm would have access to eight hours of her time every month. Smith's rate is $550 per hour and her opportunity cost of capital is 15% per year. What does the IRR rule advise regarding this opportunity? What about the NPV rule? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section.
The NPV is $4,855.34, which is positive. So, based on the NPV rule, Professor Wendy Smith should accept the opportunity is the answer.
Internal Rate of Return (IRR) is the rate of return at which the NPV of an investment is zero. NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. If the NPV is positive, then the investment will produce a profit, but if it is negative, then the investment will result in a loss. The IRR rule advises that an investment is acceptable if the IRR is greater than the required rate of return. In this case, the opportunity cost of capital is 15% per year, which serves as the required rate of return. Therefore, if the IRR is greater than 15%, then Professor Wendy Smith should accept the opportunity. The NPV rule advises that an investment is acceptable if the NPV is positive.
The formula to calculate NPV is: NPV = -Initial Investment + Cash Flow1 / (1 + Discount Rate) ^ 1 + Cash Flow2 / (1 + Discount Rate) ^ 2 + ... + Cash Flown / (1 + Discount Rate) ^ n.
In this case, the initial investment is $50,000 and there are 8 hours of access per month for a year at a rate of $550 per hour.
The NPV calculation will be: NPV = -$50,000 + ($550 x 8 x 12) / (1 + 0.15) ^ 1 + ($550 x 8 x 12) / (1 + 0.15) ^ 2 + ... + ($550 x 8 x 12) / (1 + 0.15) ^ 12.
The NPV is $4,855.34, which is positive.
Therefore, based on the NPV rule, Professor Wendy Smith should accept the opportunity.
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If instead, government chose to use the income tax to close the output gap rather than changes in spending, calculate the change in tax revenue the government would need to close the gap. Assume the same figures as part (d. 1. What is one possible automatic stabilizer in the economy that would contribute to closing this output gap? g. Assume that instead of intervening, the government allowed the economy to self-adjust in the long run. On your graph from part), llustrate how the economy would self- adjust in the long run hat the GDP deflator is 110 in the year that the output gap is identified, and three years later it is 105, does this means the recessionary gap is biely gone or as it? Explain Answer 1 of 1 Done a. Prices LRAS SRAS PRICES PL AD GDP -OUTPUT LEVEL The level of output would be less than the full- employment output level Yf because of cyclical unemployment. Thus, the short-run equilibrium with the crossing of AD and the SRAS curve will be to the left side of the full-employment output level. The graph is presented in the explanation section. b. Spain's current output Y1 with high unemployment will be inside the production possibility curve. c. The inflation rate will be low as the rate of unemployment is high as per the Phillips curve. d. If MPC=0.9 Multiplier = 1/1-MPC = 1/1-0.9 = 10 If the output gap is $100 billion, then there will be a rise in government disbursements to cover this gap. Change in government spending = output gap/multiplier 100/10 = 105 billion Therefore, government spending will increase by 105 billion to cover the output gap of 100$ billion. **As per Chegg Guidelines, I am liable to answer the first four sub-parts of the question. Do post the rest separately.
To close the output gap using income tax changes, the government would need to decrease tax revenue by an amount equal to the output gap divided by the marginal propensity to consume (MPC). If the output gap is $100 billion and the MPC is 0.9, the change in tax revenue needed would be $100 billion divided by 0.9, which is approximately $111.11 billion.
In this scenario, instead of increasing government spending, the government would use changes in income tax to close the output gap. The change in tax revenue required can be calculated by dividing the output gap by the MPC. The MPC represents the fraction of additional income that individuals spend, so by reducing taxes, people have more disposable income, which increases consumption and stimulates demand in the economy. In this case, the change in tax revenue needed would be $100 billion divided by 0.9 (MPC), resulting in approximately $111.11 billion. This tax cut would provide individuals with additional funds to spend, helping to close the output gap.
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Nizzero Corporation is a newly created company and noted the following cash related transaction for the first month ended April 2022: 1. According to the bank statement received for the month of April 2022, the balance in Nizzero's bank account on April 30 was $11,356.69. 2. The balance in the company's Cash account in the general ledger on April 30, 2022 was $13,211.76. 3. The last deposit of the month, for $867.91, was made as a night deposit on April 30. 4. One of Nizzero's customers paid its account by making an EFT from its bank into Nizzero's bank account in the amount of $616.09. 5. The bank subtracted a service charge of $42.00 from the company's bank account for April. 6. Cheque number 001 for $603.44, cheque number 009 for $531.00, and cheque number 010 for $78.49 were still outstanding at the end of April. 7. The bank statement showed that $750.00 was deducted from Nizzero's account by the bank as payment of loan principal. 8. The bank returned a cheque from one of Nizzero's customers marked NSF for $206.80 that a customer used to pay off their account. 9. The bank statement showed that cheque number 004 (which Nizzero had issued to pay for utilities expense) was recorded by the bank as $784.65, while the company incorrectly recorded this cheque as $874.65. 10. The bank deducted a cheque written by Nizarri Company (a different company) from Nizzero Company's account. The amount of the cheque was $1,907.38. Requirement 1: Prepare the bank reconciliation for April 30, 2022. Enter values in each section in order of highest to lowest dollar value. Add: Deduct: Reconciled Balance Nizerro Corporation Bank Reconciliation as at April 30, 2022 a 46 4 $ Add: Deduct: Reconciled Balance 45 47 Time left 1:10:31 Prepare all necessary journal entries to balance the cash ledger. Prepare the entries in order of highest to lowest dollar value. <>
The bank reconciliation of Nizzero Corporation as at April 30, 2022:Add: Outstanding cheques (Cheque number 001 for $603.44, cheque number 009 for $531.00, and cheque number 010 for $78.49) = $1,212.93Add: Deposit in transit (Night deposit on April 30) = $867.91Add: EFT from customer = $616.09
Deduct: Bank service charge = $42.00
Deduct: NSF cheque from customer = $206.80
Deduct: Error in recording cheque number 004 = $90.00
Deduct: Deducted cheque from Nizarri Company = $1,907.38
Bank balance according to the bank statement = $11,356.69
Cash balance according to the company's records = $13,211.76
Calculated balance = Bank balance + Add - Deduct
$11,356.69 + $1,696.00 - $2,246.18 = $10,806.51
Reconciled Balance = $10,806.51
The reconciled balance for Nizzero Corporation as at April 30, 2022 is $10,806.51. The company needs to adjust its Cash account to reflect the reconciled balance. The necessary journal entries are as follows:Journal entries:
1. To adjust for outstanding cheques:
Debit: Cash = $1,212.93
Credit: Outstanding Cheques = $1,212.93
2. To adjust for the EFT from the customer:
Debit: Cash = $616.09
Credit: Accounts Receivable = $616.09
3. To adjust for the NSF cheque from the customer:
Debit: Accounts Receivable = $206.80
Credit: Cash = $206.80
4. To adjust for the error in recording cheque number 004:
Debit: Utilities Expense = $90.00
Credit: Cash = $90.00
5. To adjust for the deducted cheque from Nizarri Company:
Debit: Cash = $1,907.38
Credit: Miscellaneous Expense = $1,907.38
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