a) Sunk costs are costs that have already been incurred and cannot be recovered, regardless of the decision made.
An example of a sunk cost in this scenario is the cost of Component Y. The units were originally purchased for £6,500, but since Jesmond cannot find any other use for them, they plan to scrap them, resulting in zero proceeds. The £6,500 is a sunk cost because it has already been spent and cannot be recovered.
Opportunity costs, on the other hand, represent the benefits or potential gains that are forgone by choosing one option over another. An example of an opportunity cost in this scenario is the labor transferred from existing work to fulfill the new order. For each hour transferred, Jesmond will lose £41 in terms of lost sales revenue, materials, and labor from other potential orders.
b) To determine the minimum price that Jesmond Ltd should charge for the proposed contract, we need to consider the cost components involved. Based on the given information, the estimated cost per unit can be calculated as follows:
Material cost:
Component X: £160 (with a 25% price rise) * 3 = £480
Component Y: Not applicable since it will be scrapped
Component Z: £23 * 5 = £115
Labour cost:
Assembly labour: 25 hours * £12/hour = £300 (for the first unit)
Inspection labour: 6 hours * £16/hour * 1.4 (premium) = £134.4
Other items cost: £375
Total cost per unit = Material cost + Labour cost + Other items cost = £480 + £115 + £300 + £134.4 + £375 = £1,404.4
To ensure Jesmond is neither better nor worse off, the minimum price to quote for the order should be at least £1,404.4 per unit.
c) In addition to financial considerations, there are other factors to consider when fixing the final price for the robotic units. These factors include market demand and competition, product quality and reliability, customer preferences and expectations, production capacity and constraints, technological advancements, and long-term business strategy. It is important to assess the potential impact of the new order on Jesmond's reputation, customer relationships, and future opportunities. Additionally, the company should evaluate the feasibility and sustainability of meeting the production requirements, including any potential risks or challenges that may arise. Considering these factors will help Jesmond make an informed decision and ensure the long-term success of the business.
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the transformation of the internet into a social platform has resulted in a power shift from sellers to buyers.
t
f
The internet was initially developed as a platform for communication and information sharing. However, the internet has evolved from being just an information-sharing platform to a social platform.
The statement, "the transformation of the internet into a social platform has resulted in a power shift from sellers to buyers" is true. The internet has undergone a significant transformation with the emergence of social media platforms. The emergence of social media platforms has brought about a change in the power dynamics between sellers and buyers. The power shift from sellers to buyers can be attributed to the changes in customer behavior. Consumers have become more knowledgeable about products and services through the use of the internet. They have become more empowered and more selective about the products they choose to buy. They are no longer passive recipients of advertising messages but active participants in the buying process. The shift in power has been caused by the ease of access to information available on the internet that enables consumers to make informed decisions. In conclusion, the transformation of the internet into a social platform has resulted in a power shift from sellers to buyers.
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American Corporation Truck Production Company has purchased a truck for $85,000. The estimate useful life is 5 years with a salvage value of $10,000. Compute the depreciation schedule using the following 4 methods and briefly discuss, which one is better and why? a. 100% bonus depreciation b. Straight line depreciation c. Double Declining Bonus depreciation d. MACRS depreciation
Depreciation schedule for the given data: a. 100% Bonus Depreciation. The correct option is A.
Under this method, 100% of the cost of the asset is allowed as the depreciation expense for the first year, and the remaining amount is subjected to normal depreciation. Here, 100% of the cost of the asset = $85,000Depreciation expense for the 1st year = 100% of the cost of the asset = $85,000Depreciation expense for the 2nd year ($85,000 - $85,000) = $0Depreciation expense for the 3rd year ($85,000 - $85,000) = $0Depreciation expense for the 4th year ($85,000 - $85,000) = $0Depreciation expense for the 5th year ($85,000 - $85,000) = $0b.
Straight-line Depreciation: Under this method, the depreciation expense is the same throughout the useful life of the asset. Depreciable cost = $85,000 - $10,000 = $75,000Depreciation expense per year Depreciable cost / Useful life= $75,000 / 5 years $15,000 per year Depreciation expense for the 1st year = $15,000Depreciation expense for the 2nd year = $15,000Depreciation expense for the 3rd year =$15,000 Depreciation expense for the 4th year = $15,000Depreciation expense for the 5th year = $15,000c.
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"Suppose that the cost of an important input a firm uses to
produce a certain product increases. As a result, you would
expect
A) the supply curve for the product to shift left (i.e.,
decrease)
The correct answer is that the supply curve for the product to shift left (i.e., decrease).
According to the law of supply, a supply curve slopes upward from left to right, reflecting the fact that at higher prices, suppliers are willing to sell more of the product. In other words, when the cost of an important input that a firm uses to produce a certain product increases, it means that the price of producing that product has increased and that there is a reduction in supply, which can be shown as a leftward shift of the supply curve in the market.
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explain the concept of beta with an do we
calculate beta . can beta be negative?
Beta is a statistical measure that indicates the volatility of a security or a portfolio in comparison to the market as a whole.
In simpler terms, beta measures how much a particular stock's price is likely to move in relation to the market. The beta value is expressed in a numerical form, typically ranging from 0 to 1 or more. A beta value of 1 indicates that the security or portfolio is expected to move in line with the market, whereas a value less than 1 means that it is less volatile, and a value greater than 1 means that it is more volatile. Beta is calculated using regression analysis, which involves analyzing the historical price movements of a security or portfolio compared to the movements of the market. It is calculated by dividing the covariance of the security or portfolio with the market by the variance of the market. The result is the beta value, which indicates how much the security or portfolio is expected to move in response to market movements. Beta can be negative, but it is less common. A negative beta value indicates that the security or portfolio moves in the opposite direction of the market. This may occur with certain types of securities, such as gold or government bonds, which tend to move in the opposite direction of the stock market during times of economic uncertainty. However, it's worth noting that negative beta values are relatively rare and are not common in most stocks or portfolios.
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hich of the following is an example of a positive feedback loop?
A) When GDP growth reaches its peak in the business cycle, then "animal spirits" cause GDP growth to decrease.
B) Firms decrease investment when GDP is decreasing.
C) When consumption spending decreases, firms increase investment spending to boost GDP growth.
I am leaning towards A.
An example of a positive feedback loop is when consumer spending decreases, firms increase investment spending to boost GDP growth. Option C.
The positive feedback loop is a self-perpetuating cycle in which an output amplifies the initial conditions or the perturbation and it encourages further growth. It increases the gain of a system and leads to the accumulation of small changes.
A positive feedback loop is defined as the output or the response that adds to the input or stimulus in such a way that the original response is amplified.
The result of a positive feedback loop is the system escaping its equilibrium state and moving towards a new one in an exponential fashion.
Hence, the right answer is option C. When consumer spending decreases, firms increase investment spending to boost GDP growth.
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Zimmerman (2015) discusses the relative importance of the objectives of financial accounting [Zimmerman, J. L. (2015). The role of accounting in the twenty-first century firm, Accounting and Business Research 45(4)]. REQUIRED: Explain why the relative importance of the objectives of financial accounting changes over time. You can, but do not have to, refer to arguments made in Zimmerman (2015).
The relative importance of the objectives of financial accounting changes over time due to various factors that impact the business environment, as discussed by Zimmerman (2015).
Zimmerman (2015) argues that the objectives of financial accounting are influenced by economic, social, and technological changes. Economic conditions, such as inflation, recession, or globalization, can significantly impact financial reporting requirements. For instance, during periods of high inflation, the objective of maintaining the purchasing power of financial statements gains importance. Social factors, such as changing societal expectations and stakeholder demands, also shape the objectives of financial accounting. Increasingly, stakeholders expect financial reports to provide information about corporate social responsibility and sustainability. Technological advancements, such as the emergence of big data analytics and cloud computing, affect the way financial information is collected, processed, and communicated.
In conclusion, the relative importance of the objectives of financial accounting is not fixed but evolves over time. Changes in economic conditions, societal expectations, and technological advancements all contribute to the shifting importance of financial accounting objectives. To adapt to the evolving business environment, financial accounting practices must continually reassess and adjust their objectives to provide relevant and reliable information for decision-making and stakeholder needs.
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Currently in China a) all banks are owned by the State. b) only shadow banks exist. c) Legitimate banks and shadow banks coexist. d) all shadow banks are owned by the state. e) none of the above.
Option (b), Currently, in China, legitimate banks and shadow banks coexist. China has seen a significant increase in shadow banking in recent years, despite government efforts to reduce risk in the financial system.
Shadow banking is defined as any form of financing activities that occurs outside of the traditional banking system. It includes a variety of activities, such as peer-to-peer lending, trust loans, and wealth management products.China's shadow banking sector has grown rapidly in recent years, reaching an estimated 79 trillion yuan ($11.8 trillion) in 2019, according to the China Banking and Insurance Regulatory Commission. This is equivalent to around 86% of China's GDP. Despite its rapid growth, the shadow banking sector has also been a source of financial instability in China, as it is often associated with high levels of risk and little regulatory oversight.
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8. Individual variable pay plans include:
Piece rate
Sales commissions
Bonuses
Special recognitions
All the above
The correct option is (E). all of the above. Individual variable pay plans include piece rate, sales commissions, bonuses, and special recognitions.
Piece rate is a type of individual variable pay plan where employees are paid based on the number of units they produce or tasks they complete. It provides a direct incentive for employees to increase their productivity and output, as their earnings are directly tied to their performance.
Sales commissions, on the other hand, are commonly used in sales roles, where employees earn a percentage of the sales revenue they generate. This encourages sales people to actively pursue and close deals, as their earnings are directly linked to their sales performance.
Bonuses are another form of individual variable pay that is typically awarded based on individual or team performance. They can be given for achieving specific targets, meeting or exceeding performance goals, or demonstrating exceptional performance.
Special recognitions are non-monetary rewards or incentives that acknowledge and appreciate exceptional individual performance. These can include awards, certificates, public recognition, or other forms of acknowledgment.
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Explain and describe the role of the Federal Reserve System
during the COVID-19 pandemic from March 2020 to the present. Detail
the specific actions carried out. Analyze the impact of this
implementatIon
During the COVID-19 pandemic from March 2020 to the present, the Federal Reserve System played a crucial role in implementing various actions to support the economy and stabilize financial markets.
These actions included lowering interest rates, providing liquidity support to financial institutions, implementing quantitative easing measures, establishing lending facilities, and implementing regulatory relief measures. The impact of these implementations was significant, as they helped mitigate financial stress, ensure the functioning of credit markets, support businesses and households, and maintain the stability of the financial system.
The Federal Reserve System, commonly known as the Fed, took swift and decisive actions in response to the economic disruptions caused by the COVID-19 pandemic. One of the key actions was the lowering of interest rates to near-zero levels, aimed at reducing borrowing costs and stimulating economic activity. Additionally, the Fed provided substantial liquidity support to financial institutions through open market operations and repo facilities, ensuring the availability of funds in the banking system.
Quantitative easing measures were also implemented, involving the purchase of Treasury securities and mortgage-backed securities to maintain market functioning and provide additional liquidity. The Fed established several emergency lending facilities to support the flow of credit to businesses, municipalities, and consumers. These facilities included the Main Street Lending Program, Municipal Liquidity Facility, and Paycheck Protection Program Liquidity Facility, among others.
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Kermit Plumbing Products Ltd. reported the following data in 20X0 (in billions) (Click the icon to view the financial statements) Compute Kermit's times-interest earned ratio and write a sentence to explain what the ratio values mean. Would you be willing to lend Kermd $1 billon? State your reason (Ender all amounts in billions.) Determine the formula for the times interest eamed ratio. Then, complete the formula and calculate the debt ratio. (Found your answer to one decimal pace, X.X.) Times interested alo es This means that Would you be willing to lend Kermit $1 billion? State your reason Based on times-interest-eamed ratio, the authors be willing to lend $1 billion to Kermit in 2000, Kermit Plumbing s existing interest expense mplete the formula a =Times-interest willing to lend $1 bill Data table Net operating revenues. Operating expenses Operating income Non-operating items: Interest expense Other Net income.... Print ********K $ 20X0 Done 29.8 24.6 5.2 (1.6) (0.2) 3.4 X X.) expense.
The calculation of Kermit Plumbing Products Ltd.’s times-interest earned ratio and explanation of the ratio values are shown below:Formula: Times interest earned ratio = (Net operating income + Interest expense + Income tax expense) / Interest expenseTimes-interest earned ratio = (5.2 + 1.6 + 1.6) / 1.6 = 4.5The times interest earned ratio represents the ability of a company to pay its interest charges on outstanding debt.
If a company's ratio is higher, it means the company is generating sufficient income to cover its interest expenses, and its debt risk is low. On the other hand, a low ratio indicates the company's inability to service its debt burden, and its debt risk is high.Based on the times-interest earned ratio, it is evident that Kermit Plumbing Products Ltd. generated sufficient income to cover its interest expense. It is, therefore, reasonable to lend $1 billion to Kermit in 20X0. Nonetheless, the lenders should also look at other financial ratios, such as liquidity ratios and debt ratios, before lending such a huge amount of money.
.The formula for the debt ratio is as follows:Debt ratio = Total debt / Total assetsIn this case, the debt ratio can be calculated as follows:Debt ratio = (1.6 + 0.2) / 29.8 = 0.06 (rounded to one decimal place)Therefore, the debt ratio of Kermit Plumbing Products Ltd. is 0.06 in 20X0.
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When using the aggregate demand-aggregate supply (AD-AS) model to illustrate growth and changes in the economy, which of the following things are considered? Social capital and goodwill. The speed of change from expansions to recessions. The efficiency of the capital and financial sector.
When using the AD-AS model to illustrate growth and changes in the economy, social capital and goodwill are not typically considered.
The model primarily focuses on the relationship between the aggregate demand for goods and services and the aggregate supply of those goods and services. The speed of change from expansions to recessions, however, is an important consideration when analyzing the model. This is because changes in aggregate demand or supply can occur rapidly, and the speed of these changes can impact the overall performance of the economy. Finally, the efficiency of the capital and financial sector is also a relevant consideration when using the AD-AS model. This is because the capital and financial sector plays a critical role in the allocation of resources within the economy, and can impact the overall level of aggregate supply and demand.
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1. (a) How does leadership relate to governance? Explain with an
example. (b) How do the governance mechanisms contribute in the
success of a company? Explain with reference to any corporate
scandals
Leadership is a crucial element of governance since it is through leadership that governance is accomplished. Leadership is about the decision-making procedure in governance, and a sound leadership can aid in the efficient governance of an organization.
Leaders play an essential role in establishing a sense of purpose, direction, and focus for their team. Leaders must create a vision for the organization, set goals, and determine strategies and tactics to achieve these objectives.
For instance, the management and control of a university is the task of governance. The council, management committee, and senate are all governed by university law. Still, it is the vice-chancellor and the top management team that have the authority to execute university policies and procedures in order to achieve the university's strategic objectives. Therefore, in this context, the vice-chancellor, who is also the leader of the top management team, has the responsibility of carrying out the university's objectives by using governance principles and practices.
Governance mechanisms are the set of procedures, policies, and systems that direct and manage the behavior of stakeholders, like employees, management, and board members. Effective governance mechanisms contribute significantly to the success of an organization.
For instance, the Enron scandal is a prominent example of how governance mechanisms may contribute to a company's downfall. Enron had an inadequate board of directors, weak financial controls, an ethical climate that condoned unethical practices, and a lack of transparency in its accounting practices. These governance weaknesses led to a culture of financial mismanagement and illegal activity, leading to the company's eventual collapse.
In conclusion, leadership is an essential aspect of governance, and governance mechanisms are essential for the success of an organization. Governance mechanisms should be implemented effectively to avoid any corporate scandals and to ensure that the organization achieves its strategic objectives. The examples of Enron clearly demonstrate that governance mechanisms play a significant role in ensuring the success of a company.
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(a) Leadership and Governance- Leadership is all about directing, guiding, and motivating a group of people or followers to achieve a common goal. On the other hand, governance refers to the exercise of authority and control to manage an organization's operations, resources, and relationships.
Leadership and governance are closely related, with leadership providing direction and governance ensuring compliance with established rules and policies. Leaders set the company's vision, mission, and objectives and work towards achieving them. Governance mechanisms, on the other hand, ensure that the leaders follow the established policies and rules.
In an organization, good governance ensures that the leaders follow established policies and rules while effectively achieving the organization's objectives. An example of good governance in leadership is when leaders in a company follow set policies and procedures in the decision-making process.
(b) Governance mechanisms and corporate scandals- Corporate scandals are events or situations that arise due to unethical conduct and questionable actions by the company's leaders and employees. These scandals can harm the company's reputation and result in financial losses. Governance mechanisms such as the board of directors, audit committee, and regulatory bodies play a significant role in preventing corporate scandals.
The board of directors is responsible for monitoring the company's management team to ensure they act in the best interest of the company and its shareholders. The audit committee ensures that the company's financial statements are accurate and comply with accounting standards. Regulatory bodies such as the Securities and Exchange Commission (SEC) ensure that companies follow established rules and regulations.
For example, the Enron scandal in 2001 was caused by unethical conduct by Enron's leaders and employees. Enron executives engaged in fraudulent accounting practices, which inflated the company's earnings and misled investors. Enron's board of directors failed to exercise its oversight responsibilities, and the audit committee did not ensure the accuracy of the company's financial statements.
The failure of the governance mechanisms in Enron led to the company's bankruptcy and losses for investors. Thus, good governance mechanisms play an essential role in ensuring companies act ethically and prevent corporate scandals.
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Assume that a country is endowed with 8 units of oil reserve. There
is no oil substitute available. How long the oil reserve will last
if (a) the marginal willingness to pay for oil in each period is
The amount of time the oil reserve will last in a country with 8 units of oil reserve will depend on the marginal willingness to pay for oil in each period.
The marginal willingness to pay for oil refers to the additional amount a consumer is willing to pay for an additional unit of oil in a given period. This willingness to pay can be influenced by various factors such as changes in income, tastes, preferences, and other economic conditions.
If the marginal willingness to pay for oil remains constant over time, it means that consumers are willing to pay the same amount for each additional unit of oil in every period. In this case, the oil reserve will last for 8 periods since there are 8 units of oil available. Each period, consumers will be willing to pay the same price for the oil, and thus the reserve will be depleted after 8 periods.
Assuming that the marginal willingness to pay for oil in each period is constant, the oil reserve in a country with 8 units of oil reserve will last for 8 periods. However, if the marginal willingness to pay for oil decreases over time, the oil reserve will last for more than 8 periods. Conversely, if the marginal willingness to pay for oil increases over time, the oil reserve will be depleted in less than 8 periods. The exact duration of the oil reserve depends on the dynamics of the marginal willingness to pay over time.
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Find an article on the current economic issues in Srilanka. The
summary may include anything related to the current global
economy.
The COVID-19 pandemic hit the economy of Srilanka hard, resulting in a 3.6% contraction in GDP in 2020.
This was due to a drop in global demand for goods and services, as well as a drop in domestic demand due to lockdowns and curfews that disrupted the economy.
The Sri Lankan government has put in place a number of measures to help alleviate the economic impact of the pandemic, including a $500 million loan from China to help with balance of payment issues and a $200 million loan from the Asian Development Bank to help with economic recovery efforts.
The Sri Lankan government has also implemented a number of policy changes to help with economic recovery. These include tax breaks for small and medium-sized businesses, a moratorium on loan repayments for individuals and businesses affected by the pandemic, and increased support for the agriculture and fisheries sectors.
The government has also announced plans to develop the tourism sector, which has been hit hard by the pandemic, by promoting domestic tourism and improving the infrastructure of popular tourist destinations.
There are a number of challenges that remain for the Sri Lankan economy, however. These include high levels of government debt, a trade deficit, and inflationary pressures. The government of Srilanka will need to address these issues in order to ensure long-term economic stability and growth.
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Consider a pure exchange economy with two goods. (a) Show that the gross substitute property implies z(p) = 0 and z(p')≠ 0 implies p . z(p') > 0, (1) so that a unique Walrasian equilibrium is globally stable. (b) Prove that if (1) holds, the set of equilibrium price vectors {p ∈ R² : z(p) = 0} is a convex set. (c) Suppose that all the consumers in the economy have quasilinear utility functions of the form u¹(x₁, x₂) = v(x₁) + x₂, where v(.) is strictly concave. Show that the gross substitute property is then satisfied, so that a Walrasian equilibrium is unique and (globally) stable.
(a) To show that the gross substitute property implies z-score (p) = 0 and z(p') ≠ 0 implies p · z(p') > 0, we can use the definition of the gross substitute property.
The gross substitute property states that for any two price vectors p and p' such that p' is a price increase from p, if the consumer's demand for good 2 (denoted as z(p)) is zero, then the consumer's demand for good 2 (denoted as z(p')) is positive.Let's assume z(p) = 0 and z(p') ≠ 0. Since p' is a price increase from p, we have p' > p.If z(p) = 0, it means that at price vector p, the consumer does not demand any quantity of good 2. Since p' > p, the consumer's budget constraint has expanded, and it is possible for the consumer to afford positive quantities of both goods.Therefore, z(p') ≠ 0 implies that the consumer demands positive quantity of good 2 at price vector p'. In other words, p · z(p') > 0.
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Leo joined the union when he was first hired at Barkley Tool and Die. Feeling that the outcome of the most recent round of contract negotiations was unfavorable to him and his co-workers, he wants to quit the union immediately. The union steward reminds him that, due to a __________, he has to remain in the union until the current contract expires.
free rider clause
checkoff provision
right-to-work law
maintenance of membership rule
Which piece of labor-management legislation gives employees the right to form, join, or assist labor organizations, including the use of collective bargaining through representatives of their choice; forbids wildcat strikes; and created the National Labor Relations Board (NLRB)?
Landrum-Griffin Act
Norris-LaGuardia Act
Wagner Act
Taft-Hartley Act
The Wagner Act, also known as the National Labor Relations Act (NLRA), was passed in 1935 and is one of the most significant labor laws in US history. It established the rights of employees to organize and engage in collective bargaining, and also created the NLRB to enforce these rights and protect workers from unfair labor practices by employers.
Leo has to remain in the union until the current contract expires due to the maintenance of membership rule. This rule states that employees who join a union must remain a member for a specified period, typically until the expiration of the current collective bargaining agreement. This is intended to prevent workers from joining a union only when they want to benefit from the union's collective bargaining efforts, and then quitting the union when they don't agree with the outcome of negotiations.
The piece of labor-management legislation that gives employees the right to form, join, or assist labor organizations, including the use of collective bargaining through representatives of their choice, forbids wildcat strikes, and created the National Labor Relations Board (NLRB) is the Wagner Act.
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Dillman Food Store developed the following information in recording its bank statement for the month of March. Balance per books March 31 $ 2,905 Balance per bank statement March 31 $10,900 1. Checks written in March but still outstanding $6,000. 2. Checks written in February but still outstanding $2,800. 3. Deposits of March 30 and 31 not yet recorded by bank $5,200. 4. NSF check of customer returned by bank $1,200. 5. Check No. 210 for $594 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $549. 6. Bank service charge for March was $50. 7. A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in March. 8. The bank collected a note receivable for the company for $5,000 plus $150 interest revenue. Required: Prepare the bank reconciliation. DILLMAN FOOD STORE Bank Reconciliation March 31
The bank reconciliation for Dillman Food Store reveals an adjusted book balance of $8,105 and an adjusted bank balance of $1,900. There is a difference of $6,665, which can be attributed to outstanding checks, deposits in transit, an NSF check, bank service charge, etc.
The bank reconciliation process begins by comparing the balance per books and the balance per bank statement. In this case, the balance per books is $2,905, and the balance per bank statement is $10,900. The next step is to identify and adjust for any discrepancies.
Deposits in transit: These are deposits made by the company but not yet recorded by the bank. In this case, there are deposits of $5,200 made on March 30 and 31 that have not yet been recorded by the bank. Adding this amount to the balance per books, the adjusted book balance becomes $8,105.
Outstanding checks: These are checks written by the company but have not yet cleared the bank. In March, there are outstanding checks totaling $6,000 and additional checks from February totaling $2,800. Subtracting these amounts from the balance per bank statement, the adjusted bank balance becomes $1,900.
NSF check: This refers to a check that was returned by the bank due to insufficient funds. In this case, an NSF check of $1,200 was returned. Subtracting this amount from the adjusted bank balance, we arrive at $1,900.
Other adjustments include a bank service charge of $50, an incorrectly entered payment of $540 ([$824 - $284]), and an incorrectly entered check of $45 ([$594 - $549]). Finally, there is a note receivable collection of $5,150 ([$5,000 + $150]), which is added to the adjusted book balance. After making these adjustments, the corrected balances are $13,720 for the adjusted book balance and $7,055 for the adjusted bank balance. The difference between the two balances, $6,665, has been reconciled by accounting for the various factors mentioned above.
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Extract: Management of slack time
"In practice, project managers carefully manage slack on sensitive resource-limited projects. If possible, they will add slack
at the end of the project by committing to a completion date that goes beyond the schedule date. For example, the plans
say the project should be completed on April 1, although the official completion date is 1 May.
Other managers take a more aggressive approach to managing slack within the schedule. They use an early start schedule
and prohibit use of slack on any activity or work package to be used unless authorised by the project manager. Progress by
percent complete and by remaining time is carefully monitored.
Activities that are beating estimated completion times are reported so that succeeding activities can start earlier and time is
not wasted. The overall intent is to create and save slack as a time buffer to complete the project early or to cover delay
problems that may creep up on critical activities or paths."
Source: Pearson, Larson and Gray (2013)
Answer ALL the questions in this section.
Question 1 (30 Marks)
The above extract refers to resource-limited projects. Elucidate (using relevant diagrams) the differences between a project
that has a fixed delivery day and one that has a fixed limit on resource usage.
Question 2 (30 Marks)
The above extract discusses various strategies for accelerating the completion of projects especially on resource-limited
projects. Critically discuss how the alternative method for project completion acceleration (Critical Chain Project
Management scheduling method) can help solve the management of slack on resource-limited projects.
Question 3
Consider the table below as a demonstration of a resource-limited project as discussed in the above extract and answer the
questions that follow. Assume that you cannot schedule more than EIGHT (8) hours of work during any day of work.
Fixed resource usage refers to the budget or amount of resources that are allotted to a project for completion on time. Fixed Delivery Day is a constraint that sets a specific end date for the project. This means that the project must be completed by that date, regardless of the resources used.
Fixed Resource Usage is a constraint that sets a specific limit on the resources that can be used to complete the project. This means that the project must be completed within the specified resources. The Critical Chain Project Management (CCPM) scheduling method is a technique that allows for a project to be completed in the shortest possible time, while still achieving the desired results. It is used to solve the problem of management of slack on resource-limited projects. CCPM is a planning and management methodology that involves the integration of several techniques, including the theory of constraints, project management, and scheduling. It is designed to address the challenges of project management, including the management of slack on resource-limited projects.
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Executives of Studio Recordings, Inc. produced the latest compact disc by the Starshine Sisters Band, titled Sunshine/Moonshine. The following cost information pertains to the new CD: CD package and disc (direct material and labor) $1.25/CD Songwriters' royalties $0.35/CD Recording artists' royalties $1.00/CD Advertising and promotion $275,000 Studio Recordings, Inc.'s overhead $250,000 Selling price to CD distributor $9.00 Calculate the following: a. Contribution per CD unit b. Break-even volume in CD units and dollars C. Net profit if 1 million CDs are sold d. Necessary CD unit volume to achieve a $200,000 profit
a. Contribution per CD unit: $6.40
b. Break-even volume in CD units and dollars: Approximately 82,031 CD units and $738,279
c. Net profit if 1 million CDs are sold: $5,875,000
d. Necessary CD unit volume to achieve a $200,000 profit: Approximately 107,812 CD units.
How We Calculated Contribution per CD unit, Break-even volume,Net profit and Necessary CD unit volume?To calculate the required values, let's go through each calculation:
a. Contribution per CD unit:
Contribution per CD unit = Selling price - Variable costs per CD unit
Variable costs per CD unit = Direct material and labor + Songwriters' royalties + Recording artists' royalties
Variable costs per CD unit = $1.25 + $0.35 + $1.00 = $2.60
Contribution per CD unit = $9.00 - $2.60 = $6.40
Therefore, the contribution per CD unit is $6.40.
b. Break-even volume in CD units and dollars:
Break-even volume in CD units = Fixed costs / Contribution per CD unit
Fixed costs = Advertising and promotion + Studio Recordings, Inc.'s overhead
Fixed costs = $275,000 + $250,000 = $525,000
Break-even volume in CD units = $525,000 / $6.40 ≈ 82,031 CD units
Break-even volume in dollars = Break-even volume in CD units × Selling price per CD unit
Break-even volume in dollars = 82,031 × $9.00 = $738,279
Therefore, the break-even volume is approximately 82,031 CD units and $738,279.
c. Net profit if 1 million CDs are sold:
Total revenue from selling 1 million CDs = Selling price per CD unit × Number of CDs sold
Total revenue = $9.00 × 1,000,000 = $9,000,000
Total variable costs for 1 million CDs = Variable costs per CD unit × Number of CDs sold
Total variable costs = $2.60 × 1,000,000 = $2,600,000
Total fixed costs = $525,000 (as calculated earlier)
Net profit = Total revenue - Total variable costs - Total fixed costs
Net profit = $9,000,000 - $2,600,000 - $525,000 = $5,875,000
Therefore, the net profit if 1 million CDs are sold is $5,875,000.
d. Necessary CD unit volume to achieve a $200,000 profit:
Net profit = (Contribution per CD unit × CD unit volume) - Fixed costs
CD unit volume = (Net profit + Fixed costs) / Contribution per CD unit
CD unit volume = ($200,000 + $525,000) / $6.40 ≈ 107,812 CD units
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write a query to print the sum of all total investment values
To provide an accurate query to print the sum of all total investment values, I would need more information about the database structure and table where the investment values are stored. However, I can provide you with a general SQL query structure that you can adapt to your specific database schema:
sql
Copy code
SELECT SUM(total_investment) AS total_investment_sum
FROM your_table_name;
Replace "your_table_name" with the actual name of the table where the total investment values are stored in your database. This query will calculate the sum of all values in the "total_investment" column and return it as "total_investment_sum".
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Which of the following is true about the Classified Balance Sheet? OA. It provides information about how resources of the business were funded. OB. Its balances are not directly linked to any other fi
The Classified Balance Sheet is an important financial statement that provides information about a company's assets, liabilities, and equity. It helps to organize and categorize these elements in a meaningful way. OA. It provides information about how the resources of the business were funded.
Regarding the given options:
OA. It provides information about how the resources of the business were funded.
This statement is true. The Classified Balance Sheet presents the sources of funding for a company's resources. It categorizes assets and liabilities into current and long-term sections, indicating how the business has financed its operations and investments.
OB. Its balances are not directly linked to any other financial statements.
This statement is false. The balances on the Classified Balance Sheet are directly linked to other financial statements, such as the Income Statement and Cash Flow Statement. The balances of assets, liabilities, and equity on the balance sheet are used to calculate various financial ratios and provide insights into a company's financial health.
Therefore, the correct answer is:
OA. It provides information about how the resources of the business were funded.
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When considering the factor distribution of income, which of the following income would go to owners of physical capital? Corporate profits • Proprietor Income • Taxes • Wages In rich countries, agricultural goods are produced with large amounts of capital and little labor. The reverse is true in poorer countries. The best explanation for this is that: labor is expensive relative to capital in poor countries but not in rich countries technology is different in rich countries and poor countries. the productivity of labor in rich countries is different from that of poor countries. labor is expensive relative to capital in rich countries but not in poor countries
The Coalition of Immokalee Workers (CIW) claims that the going wage for farm laboris exploitative. The CIW supports a minimum wage for farm workers. Which of the following statements correctly states how the minimum wage would affect farm workers? . Fewer workers will be employed, but those who are hired are better off. • More workers will be employed, and those who are hired are paid more. • Farms will want to hire more workers but will have a harder time finding willing applicants • More farm workers will be willing to work and find jobs, but wages will be lower If firms pay efficiency wages, which of the following is true? 1) The factor share of income will be more equitable. 2) The labor market will be more efficient. 3) All workers will be better off. 4) The labor market will be less efficient
The minimum wage would result in fewer workers being employed, but those who are hired will benefit. Farms will want to hire more workers, but they will have a harder time finding willing applicants since more farm workers will be willing to work and find jobs, but wages will be lower.When firms pay efficiency wages, the labor market will be less efficient because not all workers will be better off. This is because the factor share of income is not more equitable, and only a few workers are better off with efficiency wages.
When considering the factor distribution of income, the income that would go to the owners of physical capital is corporate profits.Proprietor Income • Taxes • Wages are the other incomes from which capital owners are excluded. In rich countries, agricultural goods are produced with large amounts of capital and little labor. The best explanation for this is that labor is expensive relative to capital in poor countries but not in rich countries. When labor is expensive relative to capital, as in rich countries, companies will have more incentive to use capital-intensive production methods. In poorer countries, where labor is cheaper, companies will have an incentive to use labor-intensive production methods.In response to exploitative wages in the farming industry, The Coalition of Immokalee Workers (CIW) advocates a minimum wage for farm workers. The minimum wage would result in fewer workers being employed, but those who are hired will benefit. Farms will want to hire more workers, but they will have a harder time finding willing applicants since more farm workers will be willing to work and find jobs, but wages will be lower.When firms pay efficiency wages, the labor market will be less efficient because not all workers will be better off. This is because the factor share of income is not more equitable, and only a few workers are better off with efficiency wages.
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Question A,B,C
The Statement of Financial Position of Wakon, a private company, at 31 December were as follows: 2020 2021 RM'000 RM'000 RM2000 RM'000 Assets Non-current Assets 1,000 1,600 Current Assets Inventories
Wakon's Statement of Financial Position shows an increase in non-current assets from RM1,000,000 in 2020 to RM1,600,000 in 2021, with no information provided on current assets.
The non-current assets of Wakon have increased by RM600,000 from 2020 to 2021 which indicates that the company may have invested in long-term assets such as property,
plant, and equipment, or made acquisitions to expand its business operations. However, no information is provided on the current assets, which include inventories, cash, and receivables, making it difficult to ascertain the liquidity position of the company.
It is necessary to look at the complete Statement of Financial Position to evaluate the company's financial position and performance.
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During a recession a. The Federal Reserve reduces the money supply b. Increase the money supply by printing more dollars c. Increase the money supply using any of the following instruments, open market operations, decrease in the discount rate and reduction of the legal reserve. d. Reduce the money supply by selling bonds on the open market
During a recession, the Federal Reserve typically increases the money supply using instruments such as open market operations, decreasing the discount rate, and reducing the legal reserve requirements. (Option C)
During a recession, the primary objective of the Federal Reserve is to stimulate economic growth and combat the downturn. To achieve this, the central bank employs an expansionary monetary policy. Option C correctly states that the Federal Reserve increases the money supply using instruments such as open market operations, which involve the purchase of government securities in the open market to inject liquidity into the economy. Additionally, the Federal Reserve may decrease the discount rate, which encourages banks to borrow more, and reduce the legal reserve requirements, allowing banks to lend out more money.
Options A and D are incorrect. In a recession, reducing the money supply (option A) would likely exacerbate the economic downturn by restricting access to credit and reducing spending. Selling bonds on the open market (option D) would also reduce the money supply and potentially worsen the recession.
Therefore, option C accurately reflects the actions typically taken by the Federal Reserve during a recession to increase the money supply and stimulate economic activity.
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On January 1, Parson Freight Company issues 8.0%, 10-year bonds with a par value of $2,700,000. The bonds pay interest semiannually. The market rate of interest is 9.0% and the bond selling price was
On January 1, Parson Freight Company issued 8.0%, 10-year bonds with a par value of $2,700,000. The bonds pay interest semiannually. The market rate of interest is 9.0%. The bond selling price can be calculated using present value concepts. The bond selling price of Parson Freight Company's bonds is $2,331,379.
To determine the bond selling price, we can use the present value of the bond's cash flows. The bond pays interest semiannually at a rate of 8.0% on a par value of $2,700,000, which means it pays $108,000 in interest annually ($2,700,000 * 8.0%). Since the market rate of interest is 9.0%, we need to discount the bond's future cash flows at this rate.
To calculate the present value of the bond, we can use the present value of an annuity formula. The bond has a 10-year term, which means there will be 20 semiannual periods (2 periods per year for 10 years). The market rate of interest is 9.0%, which corresponds to a semiannual interest rate of 4.5% (9.0% / 2).
Using the present value of an annuity formula, we can calculate the present value factor for a 20-period annuity at a 4.5% semiannual interest rate. Multiplying this factor by the annual interest payment of $108,000 gives us the present value of the bond's interest payments.
Next, we need to calculate the present value of the bond's par value at the end of the 10-year term. Since the par value is received at the end of the term, we only need to discount it once using the present value formula.
By summing up the present values of the interest payments and the par value, we arrive at the bond's selling price, which is $2,331,379.
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Which of the following did not play a role in influencing America's isolationist position throughout the 1930s?
a. the findings of the Nye Senate Committee
b. the economic severity and demands of the Depression
c. FDR's desire to maintain support for his New Deal
d. the state department's complete ignorance of Hitler's plans of expansion
The option which did not play a role in influencing America's isolationist position throughout the 1930s is d. the state department's complete ignorance of Hitler's plans of expansion.
The other options had a significant impact on America's decision to adopt an isolationist policy, with the Nye Senate Committee's findings leading to a mistrust of arms manufacturers and their influence on American foreign policy, the economic severity of the Depression making Americans wary of getting involved in another costly war, and FDR's (Franklin Delano Roosevelt) focus on domestic issues and maintaining support for his New Deal limiting his ability to push for international engagement.
However, the state department was not completely ignorant of Hitler's plans of expansion; thus, it did not contribute to the isolationist stance.
Therefore, the correct answer is option d. the state department's complete ignorance of Hitler's plans of expansion.
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Describe a position in a company that you would like to have after five years of work experience. List the requirements that you think would be necessary to hold this position. Describe how you plan to obtain the qualifications necessary to hold the position.
After 5 years of experience, I would like to have a position as a senior project manager in a reputable company.
I consider this role to be a leadership position, which would require me to lead the project team, manage budgets, identify potential risks and provide solutions in a timely manner to meet project deadlines. Listed below are the requirements for the role of a senior project manager:1.
A master's degree in project management would be an added advantage.2. Experience: Five to eight years of experience in project management in a similar industry or field. Experience in leading projects from conception to completion would be necessary.3. Leadership: The role of a senior project manager requires excellent leadership skills, effective communication, and the ability to motivate and mentor team members to achieve project goals.
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SECTION B ANSWER ANY THREE (3) QUESTIONS QUESTION 2 [20 MARKS] A project comprises of 12 activities which have the following durations and dependencies. Activity Dependency Duration (weeks) A 1 B A 5 C B 5 D C 7 E D 5 F E 5 G C 3 H G 3 F 5 J C 13 K J 5 L I,K,H 3 (a) Draw a network diagram for the activities set out above and determine the critical path. [15 marks] (b) Calculate the minimum time required to complete the project? [5 marks] Page 5 of 6
The minimum time required to complete the project is 39 weeks.
A). The critical path is the longest path in the network diagram, which indicates the sequence of activities that, if delayed, would delay the entire project. In this case, the critical path is:
A -> B -> C -> J -> L -> D -> E
(b) To calculate the minimum time required to complete the project, we need to add up the durations of the activities along the critical path:
1 + 5 + 5 + 13 + 3 + 7 + 5 = 39 weeks
The critical path is a fundamental concept in project management that represents the sequence of tasks and activities that determine the minimum time required to complete a project. It identifies the longest path from the project's start to its end and highlights the activities that must be completed on time to prevent delays in the project's overall timeline. Each activity on the critical path has zero slack or float, meaning any delay in its completion will directly impact the project's duration.
By focusing on the critical path, project managers can allocate resources, set realistic deadlines, and prioritize activities to ensure timely project completion. They can also identify potential bottlenecks and areas of risk, allowing them to take proactive measures to mitigate any issues. The critical path method (CPM) is a powerful tool for project scheduling.
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if monetary authorities ease credit or money,
A. interest rates will rise
B. Unemployment will rise
C. Tax rates will rise
D. The money supply will rise.
E. The gold supply will rise
If monetary authorities ease credit or money, the correct answer is D. The money supply will rise.
The amount of money in the economy increases when monetary authorities conduct expansionary monetary policy, such as cutting interest rates or implementing quantitative easing. This increases the amount of money available for borrowing and spending, hence boosting economic activity.
This policy seeks to encourage economic growth and lower unemployment, despite the fact that interest rates typically fall, not rise (option B).
Fiscal policy, which has nothing to do with monetary policy, determines tax rates (option C).
The gold supply (option E) is unaffected by monetary policy decisions because it is determined by mining output, consumer demand, and central bank policies, independent of each other.
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Test 2-CH 4&5 Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co, can generate cash flows of $6.000, $11,000, and $12.200 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 14 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.? Multiple Choice O $37,791.00 $34,200.00 $26,996.14 $25,336.81
Marko is willing to pay approximately $25,336.81 today to buy ABC Co.
To determine the present value of the expected cash flows and find out how much Marko is willing to pay today to buy ABC Co., we can use the formula for the present value of a series of cash flows.
PV = CF1 / (1+r)^1 + CF2 / (1+r)^2 + CF3 / (1+r)^3
Where:
PV = Present value
CF1, CF2, CF3 = Cash flows in each year (Year 1, Year 2, Year 3)
r = Rate of return
Given:
CF1 = $6,000
CF2 = $11,000
CF3 = $12,200
r = 14% or 0.14
Using the given values, we can calculate the present value:
PV = 6000 / (1+0.14)^1 + 11000 / (1+0.14)^2 + 12200 / (1+0.14)^3
Calculating the expression above will give us the present value that Marko is willing to pay today to buy ABC Co.
PV ≈ $25,336.81
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