Answer:
A. Investment
B. Investment
C. Saving
D. Saving
Explanation:
Saving refers to the amount that is set aside that can be used for any future emergencies or purchases.
Investment refers to purchasing assets such as bonds, stocks, mutual funds that help in making money.
A. Caroline buys new bulldozers for her construction firm. - Investment
B. Dmitri purchases a new condominium in Detroit. - Investment
C. Frances purchases stock in Nano Speck, a biotech firm. - Saving
D. Antonio purchases a corporate bond issued by a car company. - Saving
The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were debited to one account called intangible asset. A recap of the $176,500 balance in this account at the end of 2021 is as follows:
Date Transaction Amount
February 3 State incorporation fees and legal costs related to organizing the corporation $ 9,500
March 1 Fire insurance premium for three-year period 8,500
March 15 Purchased a copyright 25,000
April 30 Research and development costs 45,000
June 15 Legal fees for filing a patent on a new product resulting from an R&D project 5,500
September 30 Legal fee for successful defense of patent developed above 17,000
October 13 Entered into a 10-year franchise agreement with franchisor 45,000
Various Advertising costs 21,000
Total $ 176,500
Required:
Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other types of assets, and expenses indicated by the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Dr Organization cost expense $ 9,500
Dr Fire insurance $8,500
Dr Copyright $25,000
Dr Research and Development Expense $45,000
Dr Patent $22,500
Dr Franchise $45,000
Dr Advertising $21,000
Cr Intangible Asset $176,500
Explanation:
Preparation of the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets
Dr Organization cost expense $ 9,500
Dr Fire insurance $8,500
Dr Copyright $25,000
Dr Research and Development Expense $45,000
Dr Patent $22,500
($17,000 + $5500)
Dr Franchise $45,000
Dr Advertising $21,000
Cr Intangible Asset $176,500
($9,500+$8,500+$25,000++$45,000+$22,500+$45,000+$21,000)
(To clear the intangible asset account and to set up accounts for separate intangible assets)
If a company was trying to find the best production strategy which maximized their total profits using an optimization model, the amount of time used in the Fabrication department is an example of Group of answer choices Parameter Objective function Decision variable Constraint
Answer: Constraint
Explanation:
The company data is not attached but this should be correct.
Constraints enable companies and entities to engage in sensitivity analysis which would enable them find out optimal quantities of production and production strategy.
Constraints show how much of something is needed to get something done so in making time the constraint, the company is trying to find out how much time is needed in the fabrication department for goods in order for profits to be maximized.
Abbot Corporation reported pretax book income of $500,000. During the current year, the reserve for bad debts increased by $5,000. In addition, tax depreciation exceeded book depreciation by $40,000. Finally, Abbot received $3,000 of tax-exempt life insurance proceeds from the death of one of its officers. Abbot's current income tax expense or benefit would be:
Answer:
$157,080
Explanation:
Calculation to determine what Abbot's current income tax expense or benefit would be:
Current income tax expense or benefit=[($500,000 + $5,000 - $40,000 - $3,000)*34%]
Current income tax expense or benefit= $462,000* 34%
Current income tax expense or benefit=$157,080
Therefore Abbot's current income tax expense or benefit would be:$157,080
Generally, a loan obtained from a bank will be a _____ loan.
A. Taxed
B. Term
C. Variable
D. Collateral-free
Answer:
Term
Explanation:
On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $31,000. A total of $2,800 was paid for installation and testing. During the first year, Milton paid $4,200 for insurance on the equipment and another $640 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $5,600. During Year 1, the equipment produced 14,000 units. What is the amount of depreciation for Year 1
Answer:
the amount of depreciation for Year 1 is $3,948
Explanation:
Step 1 : Determine Cost of Equipment
Cost according to IAS 16 means purchase price plus other costs directly incurred in bringing the asset to location and condition of use as intended by management.
Purchase Price $31,000
Installation and testing $2,800
Total Cost $ 33,800
Step 2 : Determine the depletion rate
Depletion rate = (Cost - Salvage Value) ÷ Estimated Production
= ($ 33,800 - $5,600) ÷ 100,000 units
= 0.282
Step 3 : Determine the Depreciation Expense
Depreciation Expense = Depletion rate x Units Produced
= 0.282 x 14,000 units
= $3,948
Conclusion
the amount of depreciation for Year 1 is $3,948
You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the table above. If your income is $9 and the prices of X and Y are $2/unit and $1/unit, respectively, what quantities of each will you purchase to maximize utility?
The quantities of good X and good Y that would be bought to maximize the utility value would be:
C). X - 2; Y - 5
Marginal Utility"Marginal Utility" is defined as the extra utility or contentment received by a customer on the purchase of an extra unit of a good.
Given that,
Income [tex]=[/tex] $[tex]9[/tex]
Price of good X [tex]=[/tex] $[tex]2 /unit[/tex]
Price of good Y [tex]=[/tex] $[tex]1/unit[/tex]
Units of X [tex]MU_{X}[/tex] Units of Y [tex]MU_{Y}[/tex]
1 10 1 8
2 8 2 7
3 6 3 6
4 4 4 5
5 3 5 4
6 2 6 3
We know that,
For maximum utility
[tex]= MU_{X} /Price of X = MU_{Y} /Price of Y[/tex]
So,
[tex]10/2 = 5/1[/tex]
[tex]2[/tex] × [tex]2 + 5[/tex] × [tex]1 = 9[/tex]
2 units of X and 5 units of Y gives maximum utility at the given income with a total utility of $48.
Thus, option C is the correct answer.
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Orion Flour Mills purchased a new machine and made the following expenditures:
Purchase price $55,000
Sales tax 5,000
Shipment of machine 800
Insurance on the machine for the first year 500
Installation of machine 1,600
The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required:
Record the above expenditures for the new machine.
Answer:
Dr Equipment 62400
Dr Prepaid Insurance 500
Cr Cash 2900
Cr Accounts Payable 60,000
Explanation:
Preparation of the journal entry to Record the above expenditures for the new machine.
Dr Equipment 62400
Dr Prepaid Insurance 500
Cr Cash 2900
Cr Accounts Payable 60,000
(62,400+500-2900)
Equipment:
Purchase price ($55,000) + Sales tax (5,000) + Shipping (800) + Installation (1,600) =
Total cost 62400
Cash:
Shipment of machine (800) + Insurance on the machine ((500)) +Installation of the machine (1,600) = 2900
In a paragraph of 250 words or less, please discuss areas of outstanding achievements. Give examples such as scholarships, leadership roles, major projects, work experience, etc. Outstanding achievements will be reviewed by all selected major choices to which you apply.
Explanation:
Writing a scientific article at the university can be a remarkable and relevant achievement as this article seeks to find solutions to problems faced by today's society. An example is a scientific project in the area of environmental management that seeks to develop explanations and solutions applicable to companies for the implementation of environmental programs and certifications, it is a project that will contribute to the reduction of impacts to the environment and to the valorization of local communities and producers. .
However, it is necessary that the environmental management project presents solutions that benefit both the organization and the environment in fact, as organizations as profitable entities will implement some social and environmental benefit program if it is legally necessary or bring strategic and competitive benefits.
Below is the complete list of accounts of Cobras Incorporated and the related balance at the end of March. All accounts have their normal debit or credit balance. Supplies, $1,100; Buildings, $41,000; Salaries Payable, $300; Common Stock, $21,000; Accounts Payable, $1,500; Utilities Expense, $2,300; Prepaid Insurance, $1,100; Service Revenue, $18,100; Accounts Receivable, $2,800; Cash, $2,100; Salaries Expense, $5,000; Retained Earnings, $14,500. Required: Prepare a trial balance with the list of accounts in the following order: assets, liabilities, stockholders' equity, revenues, and expenses.
Answer:
Cobras Incorporated
Trial Balance as at March 31.
Debit Credit
Supplies $1,100
Buildings $41,000
Cash $2,100
Accounts Receivable $2,800
Prepaid Insurance $1,100
Salaries Payable $300
Accounts Payable $1,500
Common Stock $21,000
Retained Earnings $14,500
Service Revenue $18,100
Utilities Expense $2,300
Salaries Expense $5,000
Totals $55,000 $55,000
Explanation:
A Trial Balance is used to check mathematical accuracy in ledger Accounts. It represents a list of Balances : Debit and Credit extracted from the Ledger Accounts.
Wilson Animal Feeds has developed the following data to calculate lower of cost or market for its products.
Large animals:
Cattle $320 $160
Horse 400 400
Small animals:
Cat $360 $320
Dog 120 90
Exotic pets:
Ferret $140 $112
Iguana 70 48
The costs to sell are 20% of selling price.
Required:
Determine the reported inventory value assuming the lower of cost and net realizable value rule is applied to classes of feeds.
Answer:
The total reported inventory value is $1,130.
Explanation:
Note: The data given the question are sorted and presented properly as follows:
Selling Price Cost
Large animals:
Cattle $320 $160
Horse 400 400
Small animals:
Cat $360 $320
Dog 120 90
Exotic pets:
Ferret $140 $112
Iguana 70 48
Based on the lower of cost and net realizable value rule, we select the lower and determine the reported inventory value as follows:
Details Value ($)
Large animals:
Cattle 160
Horse 400
Small animals:
Cat 320
Dog 90
Exotic pets:
Ferret 112
Iguana 48
Total value 1,130
Therefore, the total reported inventory value is $1,130.
Your family business produces a secret recipe salsa and distributes it through both smaller specialty stores and chain supermarkets. The chains have been demanding sizable discounts but you do not want to drop your prices to the specialty stores. When can you legally accommodate the chains without losing profits from the specialty stores
Answer:
We can make the chain supermarkets buy goods in bulk.
Explanation:
In the given scenario the chain supermarkets have been demanding heavy discounts on goods that you are selling to them.
Also you do not want the eventual price to the speciality stores to drop.
The solution will be to sell products in bulk to the chain supermarkets. This will meet their demand for larger discounts as price per unit of product will be lower with bulk purchase.
Then the speciality stores can still buy in small quantities for higher price.
This will accommodate the requirements from both stores.
How much would you take home after federal taxes on a salary of $65,500?
_________ are basic beliefs about right and wrong or philosophies that are pervasive in a society. For instance, in some countries, people believe that they should be able to set their personal goals and make their own decisions. In other countries, people believe that they they should consult their family members or other members of their collectives when setting their goals or making their decisions.
a. values attitudes
b. manners
c. customs
Answer:
A. Values
Explanation:
Although, the above explanations entails or encompasses what values are, manners and customs of people in a country; however, values is what summarizes the whole passage.
Values are what a given society holds in high esteem. They are basic and fundamental beliefs that controls actions in a given society. Values may be right or wrong according to the philosophies of those who believes in such, it is however very important because it helps a society determines what is important I.e something that is good, worthwhile and very much desirable.
The options are:
a. values
b. attitudes
c. manners
d. customs
Answer:
a. values
Explanation:
Values are defined as the concept of right and wrong behaviours within a society. This shapes acceptable behaviour within that society.
They are the motives that exists behind certain way of doing things.
Values therefore sets a ranking of how good and desirable a mode of behaviour is.
Examples of values include dependability, honesty, open mindedness, and consistency.
The cash flows for a project include the: Multiple Choice incremental operating cash flow and aftertax salvage value of the project. incremental operating cash flow, as well as the capital spending and net working capital requirements. net income generated by the project plus the annual depreciation expense. net operating cash flow generated by the project, less both sunk and erosion costs. sunk costs, opportunity costs, and erosion costs of the project.
Answer:
Incremental operating cash flow as well as any change in capital spending, and net working capital.
Explanation:
As we know that
Incremental operating cash flow = Incremental revenue - incremental expenses.
Here the incremental revenue with negative capital spending would be deducted and the working capital would be adjusted to determine the cash flow
So the above represent the answer
Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, whiclh pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours. In the most recent month, 160,000 items were shipped to customers using 6,500 direct labor-hours. The company incurred a total of $20,800 in variable overhead costs.
According to the company's standards, 0.03 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $3.25 per direct labor-hour
Required:
1. What is the standard labor-hours allowed (SH) to ship 160,000 items to customers?
2. What is the standard variable overhead cost allowed (SH x SR) to ship 160,000 items to customers?
3. What is the variable overhead spending variance?
4. What is the variable overhead rate variance and the variable overhead efficiency variance?
(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do no round intermediate calculations.)
1. Standard quantity of labor-hours allowed
2. Standard variable overhead cost allowed
3. Variable overhead spending variance
4. Variable overhead rate variance
Variable overhead efficiency variance
Answer:
1. Standard quantity of labor-hours allowed 4,800
2. Standard variable overhead cost allowed $15,600
3. Variable overhead spending variance 5,200 U
4. Variable overhead rate variance 325 F
5.Variable overhead efficiency variance 5,525 U
Explanation:
1. Calculation for Standard quantity of labor-hours allowed
Standard quantity of labor-hours allowed = 160,000*0.03
Standard quantity of labor-hours allowed= 4,800
Therefore Standard quantity of labor-hours allowed is 4,800
2. Calculatuon for Standard variable overhead cost allowed
Standard variable overhead cost allowed= 4,800*$3.25
Standard variable overhead cost allowed = $15,600
Therefore the Standard variable overhead cost allowed is $15,600
3. Calculation for Variable overhead spending variance
Variable overhead spending variance = $15,600 - $20,800
Variable overhead spending variance = 5,200 U
Therefore the Variable overhead spending variance is 5,200 U
4. Calculation for Variable overhead rate variance
Variable overhead rate variance= ($3.25 - $20,800/6,500)*6,500
Variable overhead rate variance=($3.25-$3.2)*6,500
Variable overhead rate variance= 325 F
Therefore The Variable overhead rate variance= 325 F
5. Calculation for Variable overhead efficiency variance
Variable overhead efficiency variance= (4,800-6,500)*3.25
Variable overhead efficiency variance = 1,700*3.25
Variable overhead efficiency variance= 5,525
Therefore the Variable overhead efficiency variance is 5,525 U
Your friend currently works as an accountant at a public accounting firm in the small town of LaFontaine, Indiana. He is offered a job in Washington, D.C. for $60,000. Your friend calls you and tells you that he is excited about the new job offer, which gives him a raise from his current salary of $50,000. Based on your knowledge of economics, you think that:______
a. Your friend most likely should not be quite so excited because the extremely high cost of living in New York City means his real salary increase will be less than he imagined.
b. Your friend has every reason to be excited because he will be getting paid.
c. Your friend has reason to be excited because in a bigger city he will häve more.
d. Your friend has no reason to be excited because higher pay implies more job 120% of what he used to be paid. things to do and his higher salary will allow him to spend on those activities.
Answer:
Correct option is (a)
Explanation:
Real income is the income after adjusting for inflation. Inflation is rise in general price of commodities. Here, friend was living in a small town. Cost of living as well as inflation is lower as compared to big city like Washington DC. Even though he is given a raise of $10,000 that is an increase in nominal income, his real income after adjusting inflation and cost of living would not rise by $10,000.
So, friend should not get excited to be moving to the city with higher pay as it will not make much of difference.
Which of the following scenarios are macroeconomic in nature? Select all that apply. Group of answer choices A firm is trying to decide whether it should expand into another state. Microsoft is considering buying another firm to help it expand its social media presence. The GDP of France has fallen to an inflation adjusted low. The U.S. unemployment rate falls to 8.5% in December. The central bank of the United States increased interest rates by 0.5%. A town passes a law to make it illegal for homeowners to burn leaves.
Answer:
The GDP of France has fallen to an inflation adjusted low.
The U.S. unemployment rate falls to 8.5% in December.
The central bank of the United States increased interest rates by 0.5%.
Explanation:
Economics encompasses how people use scarce resources.
Macroeconomics is commonly defined as the act of distributing or allocating the resources of an entire economy to achieve an aggregate economic goals. participants. The three scenarios above aim to achieve economic goals. The study of how groups of individuals choose to allocate the scarce resources available to them is very important in an economy.
High Point Hotel (HPH) has $165,000 in accounts receivable. To finance a major purchase, the company assigns these receivables to Cross Town Bank. Which one of the following statements correctly describes this transaction? HPH will immediately receive $165,000 and will have no further obligation related to these receivables. HPH will receive some amount of cash immediately while maintaining full responsibility for any uncollected receivables. Cross Town Bank accepts full responsibility for the collection of the accounts receivables and, in exchange, immediately pays HPH a discounted value for its receivables. Cross Town Bank accepts full responsibility for collecting the accounts receivables and pays HPH a discounted price for the accounts collected after the normal collection period has elapsed. HPH receives the full amount of its receivables upon assignment but must reimburse Cross Town Bank for any uncollected account
Answer: HPH will receive some amount of cash immediately while maintaining full responsibility for any uncollected receivables
Explanation:
Since High Point Hotel (HPH) has $165,000 in accounts receivable and the company assigns these receivables to Cross Town Bank in order to finance a major purchase, it simply implies that HPH will receive some amount of cash immediately while maintaining full responsibility for any uncollected receivables.
Other options given are incorrect as they don't describe the transaction.
Sheffield Company uses the LIFO method for financial reporting purposes but FIFO for internal reporting purposes. At January 1, 2020, the LIFO reserve has a credit balance of $1,067,300. At December 31, 2020, Sheffield’s internal reports indicated that the FIFO inventory balance was $2,688,300 and for external reporting purposes the LIFO inventory balance was $1,525,000. (a) What is the amount of the LIFO reserve and the LIFO effect related to 2020? LIFO reserve at December 31, 2020 $enter a dollar amount LIFO effect for 2020 $enter a dollar amount
Answer and Explanation:
The computation of the amount of the LIFO reserve and the LIFO effect related to 2020 is shown below:
Internal reporting inventory $2,688,300
Less: External reporting inventory $1,525,000
LIFO reserve at December 31 2020 $1,163,300
Less: Beginning LIFO credit reserve $1,067,300
LIFO effect for 2020 $96,000
In your own words, discuss GAP management and then suggest a way to reduce the impact of its limitation. Do not duplicate limitations and solutions; that is, you can discuss the same limitation as a fellow student if you are able to suggest a different way of reducing the impact.
Answer:
Gap management is a strategy which every business follows. A business can be successful only if it sets goals for its future.
Explanation:
Gap management is the difference between where an organization stands today and where it wants to be in future. A company's management will set its own targets and then sets position of the company. There are limitation of gap management as there can be targets which are sometimes unachievable or there are some external forces which hinders the business progress.
On 4/1, Renfro Corporation purchased for $765,000 a tract of land on which was located a warehouse and an office building. The following appraised values were collected concerning the property: Land, $300,000, Warehouse $200,000, Office building $400,000. What are the amounts that Renfro should record for the land, warehouse, and office building, respectively?
Answer:
Renfro Corporation
The amounts that Renfro should record for the land, warehouse, and office building, respectively are:
Land = $255,000
Warehouse = $170,000
Office building = $340,000
Explanation:
a) Data and Calculations:
Purchase price = $765,000
Appraised values of:
Land = $300,000
Warehouse = $200,000
Office building = $400,000
Total appraise value = $900,000
Apportionment of Purchase Price:
Land = $255,000 ($765,000/$900,000 * $300,000)
Warehouse = $170,000 ($765,000/$900,000 * $200,000)
Office building = $340,000 ($765,000/$900,000 * $400,000)
Total = $765,000
. Department C is the first stage of Cohen Corporation's production cycle. The following equivalent unit information is available for conversion costs for the month of September: Beginning work-in-process inventory (20% complete) 85,000 Started in September 1,430,000 Completed in September and transferred to Department D 1,210,000 Ending work-in-process inventory (80% complete) 305,000 Using the FIFO method, the equivalent units for the conversion cost calculation are:
Answer:
1,657,000 units
Explanation:
The FIFO method is concerned with the work done in the current production period.
Equivalent Units of Production - Conversion Costs
To finish Opening Work In Process ( 85,000 x 80%) 68,000
Started and Completed [(1,430,000 - 85,000) x 100%] 1,345,000
Ending Work In Process 305,000 x 80% 244,000
Total Equivalent Units of Production - Conversion Costs 1,657,000
therefore,
the equivalent units for the conversion cost calculation are: 1,657,000 units
indicates that there can be a performance decrease as a team goes through the storming phase of team development. During the storming phase in team development, team performance declines for a period of time as conflicts emerge regarding goals and contributions of team members. a. Team performance curve b. Five-stage model of team development c. Team effectiveness d. Team activity
Answer:
a. Team performance curve
Explanation:
A team can be defined as a group of people or set of individuals with various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective.
This ultimately implies that, a team comprises of individuals, workers or employees having complementary skills, knowledge and experience needed to execute a project or task successfully. Therefore, workers working as a team usually interact with the other team members and as a result, this enhances performance and strengthen the level of relationship they share.
Team performance curve indicates that there can be a performance decrease as a team goes through the storming phase of team development. During the storming phase in team development, team performance declines for a period of time as conflicts emerge regarding goals and contributions of team members.
Mt Kinley is a strategy consulting firm that divides its consultants into three classes, associates, managers, and partners. The firm has been stable in size for the last 20 years, ignoring growth opportunities in the 90s, but also not suffering from a need to down-size in the recession. Specifically, there have been – and are expected to be – 200 associates, 60 managers, and 20 partners. The work environment at Mt Kinley is rather competitive. After 4 years of working as an associate, a consultant goes "either up or out", i.e. becomes a manager or is dismissed from the company. Similarly, after 6 years a manager either becomes a partner or is dismissed. The company recruits MBAs as associate consultants, no hires are made at the manager or partner level. A partner stays with the company for another 10 years (total of 20 years with the company). How many new MBA graduates does Mt Kinley have to hire every year? What is the probability that an incoming MBA graduate would make partner at Mt Kinley?
Answer:
1. 50 consultants per year
2. 4%
Explanation:
1. Calculation to determine How many new MBA graduates does Mt Kinley have to hire every year
Using this formula
Flow Rate of associates= Inventory / Flow Time
Let plug in the formula
Flow Rate of associates = 200 consultants / 4 years
Flow Rate of associates= 50 consultants per year
Therefore the numbers of MBA graduates that Mt Kinley have to hire every year is 50 consultants per year
2. Calculation to determine the probability that an incoming MBA graduate would make partner at Mt Kinley
First step is to calculate the Flow Rate of managers using this formula
Flow Rate of manager= Inventory / Flow Time
Let plug in the formula
Flow Rate of manager = 60 consultants / 6 years
Flow Rate of manager =10 consultants per year
Second step is to calculate the flow rate of partner using this formula
Flow rate of partner = Inventory/ Flow time
Let plug in the formula
Flow rate of partner = 20/10
Flow rate of partner = 2 partners per year
Third step is to calculate the probability of becoming a manager
Probability (Manager) = 10/50
Probability (Manager) = 20%
Fourth step is to calculate Probability of becoming a partner
Probability (Partner) = 2/10
Probability (Partner) = 20%
Now let calculate the probability that an incoming MBA graduate would make partner at Mt Kinley
Probability of MBA graduate becoming a partner = 20% x 20%
Probability of MBA graduate becoming a partner = 4%
Therefore the probability that an incoming MBA graduate would make partner at Mt Kinley is 4%
Most purchase agreements are contingent on which 2 items appraised value property description clean title or title insurance
Most agreements for identifying are reliant on a successful home examination and mortgage loans clearance. There are other forms of uncertainties as well.
What is agreements?An agreement is a written agreement between two or more persons to do something. To make a legally binding commitment, two or more parties must agree on the parameters of the agreement. The terms and conditions are always included in the signed agreement.
It was the house inspection and mortgage loans conditions, according to the agreement. The phrase contingent in real estate refers to the seller accepting an opportunity to buy the property. The majority of purchase agreements are subject to a satisfactory home examination and mortgage loans clearance.
As a result, procedure for identifying are reliant on a successful home examination and mortgage loans clearance. There are other forms of uncertainties as well.
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Portfolio Returns i. stock has mean of 8% and stdev of 20%; ii bond has mean of 6% and stdev of 15%; iii correlation b/w stock and bond of -0.3; iv. Risk free rate for cash lending and borrowing is at 1%. a. What is the mean and stdev of a portfolio of that is 60% in stock and 40% in bond (3 points)
Answer:
Portfolio Mean = 7.2%
Portfolio Stdev = 0.1169615 or 11.69615% rounded off to 11.70%
Explanation:
The mean return of a portfolio consisting of two securities can be calculated by multiplying the weight of each security in the portfolio by the mean return of that security and adding the products for each security. The formula for two asset or security portfolio return (mean) can be written as follows,
Portfolio Mean = wA * rA + wB * rB
Where,
w represents the weight of each securityr represents the mean return of each securityPortfolio Mean = 60% * 8% + 40% * 6%
Portfolio Mean = 7.2%
The standard deviation is a measure of the total risk. The standard deviation of a portfolio consisting of two securities can be calculated using the attached formula.
Portfolio Stdev = √(0.6)² (0.2)² + (0.4)² (0.15)² + 2(0.6) (0.4) (-0.3) (0.2) (0.15)
Portfolio Stdev = 0.1169615 or 11.69615% rounded off to 11.70%
The standard deviation of the market-index portfolio is 35%. Stock A has a beta of 1.40 and a residual standard deviation of 45%.
a-1. Calculate the total variance of stock A if its beta is increased by 0.20?
a-2. Calculate the total variance of stock A if its residual standard deviation is increased by 7.54%?
b. An investor who currently holds the market-index portfolio decides to reduce the portfolio allocation to the market index to 90% and to invest 10% in stock A. Which of the following changes (an increase of 0.20 in beta or increase of 7.54% in residual standard deviation) will have a greater impact on the portfolio's standard deviation?
i. Both will have the same impact.
ii. Increase of .20 in beta will have a greater impact.
iii. Increase of 7.54% in the residual standard deviation will have a greater impact.
Answer:
a-1. Variance = Beta² * Standard deviation of market² + Residual standard deviation²
Beta increases by 0.2
= 1.4 + 0.2
= 1.6
Total variance
= 1.6² * 35%² + 45%²
= 51.61%
a-2. If residual value increases by 7.54% it becomes:
= 45 + 7.54
= 52.54%
Total variance
= 1.4² * 35%² + 52.54%²
= 51.61%
b. ii. Increase of .20 in beta will have a greater impact.
Portfolio standard deviation helps ascertain the effects of systematic risk on the portfolio. Beta is used to represent that systematic risk. A change in Beta will therefore affect standard deviation more because standard deviation shows the impact of beta as a representation of systematic risk.
Dmitri doesn't like Val, one of his coworkers. Dmitri started to send an e-mail to his workgroup, falsely accusing Val of stealing company supplies. Before clicking "Send," Dmitri reread his message. He decided to delete the message instead of sending it, fearing that his work team members might consider his e-mail to be inappropriate. Which ethical consideration did Dmitri use in his decision to behave in a principled manner?
A) Publicity Test
B) Common Good approach
C) Professional Ethic
D) Utilitarian approach
Answer:
C. Professional Ethics.
Explanation:
Ethics are moral qualities which governs a persons behavior. A person is sometimes in an ethical dilemma scenario where he has to take decision which might impact his ethical values. Professional ethics is a situation where a person thinks how his decision will be viewed by an independent jury or audience.
Assume that the entry closing total revenues of $284,900 and total expenses of $212,600 has been made for the year ending December 31. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $330,000 and Teresa Schafer, Drawing has a balance of $27,600.
A. Journalize the entry required to close the Teresa Schafer, Drawing account.
B. Determine the amount of Teresa Schafer, Capital at the end of period.
Answer and Explanation:
a. The journal entry to record the closing of drawing account is given below:
Teresa Schafer, Capital $27,600
Teresa Schafer, Drawing $27,600
(Being closing of drawing account is recorded)
b. The ending capital is
= Credit balance of capital - drawings
= $330,000 - $27,600
= $302,400
Which of the following statements about collaboration is not true? A. Business collaboration relies on the formation of teams that are assigned a specific task or goal. B. One business benefit of collaboration is improved innovation. C. In business, a collaboration can last as little as a few minutes. D. Successful collaboration can be achieved through technology regardless of the organization's culture or structure. E. Businesses need special systems for collaboration.
Answer:
The option "E" is most likely not true.
Explanation:
As shown in a previous answer, "Successful collaboration can be achieved through technology regardless of the organization's culture or structure". This answer is true. Showing how today bussiness can collaborate in person and digitally, answer E would not be true.
The false statement here is Successful collaboration can be achieved through technology regardless of the organization's culture or structure.
Business collaboration has to do with making purposeful connections, both internally & externally (with other firms and organization). Such purpose are in order to attain goals or solve problems by sharing diverse skill sets, abilities, and perspectives.
The effort of collaboration with expertise from different organisations and others partners in the network helps to innovate, grow and increase the competitiveness of such business.
In conclusion, successful collaboration cannot be achieved through technology because physical effort and meetings are need to rob minds on how to move the organisation forward.
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