To make the necessary journal entries for the given transactions, follow these steps: 1. Purchased 300 widget product units for $10 each on account from BuyFromUsWidgets: - Debit Inventory (asset) for $3,000 (300 units x $10) - Credit Accounts Payable (liability) for $3,000
2. Customer Marsha Brady returns 5 widget product units for a full refund: - Debit Sales Returns and Allowances (contra-revenue) for $50 (5 units x $10) - Credit Accounts Receivable (asset) for $50 3. Sold 350 widget product units for $16 each on account to Mike Brady: - Debit Accounts Receivable (asset) for $5,600 (350 units x $16) - Credit Sales (revenue) for $5,600 4. Sold 400 widgets at $16 each for cash to Bobby: - Debit Cash (asset) for $6,400 (400 units x $16) - Credit Sales (revenue) for $6,400 5. Paid the amount owed for the supplies purchased: - Debit Accounts Payable (liability) for $3,000 - Credit Cash (asset) for $3,000 6. The customer who paid $80 in advance comes in and purchases 2 widget product units for $16 each, paying by having us take out the amount due from the advance payment: - Debit Accounts Receivable (asset) for $32 (2 units x $16) - Credit Sales (revenue) for $32 - Debit Cash (asset) for $32 - Credit Accounts Receivable (asset) for $32 Please note that these journal entries are based on the information provided and may vary depending on your specific accounting practices.
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Compare static theory and pecking order theory based on the last video clip from Ch13 Video Questions.
Static theory and pecking order theory are two different theories in finance that explain the financing behavior of firms. In the video clip from Ch13 Video Questions, the difference between static theory and pecking order theory can be observed.
Static theory suggests that firms have an optimal capital structure and they choose a mix of debt and equity to maximize the value of the firm. In contrast, pecking order theory suggests that firms prefer internal financing sources first and debt financing next, before resorting to equity financing. Let's examine the two theories in more detail.
Static Theory: Static theory suggests that the value of the firm is independent of the way it is financed. Static theory proposes that the total value of the firm is not affected by how the firm raises capital. It means that the total value of the firm is determined by its earning power and risk.
Static theory further proposes that firms have an optimal capital structure where the weighted average cost of capital (WACC) is minimized and the market value of the firm is maximized. It suggests that the optimal capital structure can be achieved by balancing the costs and benefits of debt and equity financing.
Pecking Order Theory: Pecking order theory suggests that firms prefer internal financing first, followed by debt financing and then equity financing. Pecking order theory further proposes that firms prefer internal financing first because it is cheaper than external financing. External financing, such as debt and equity financing, has more information asymmetry and agency costs than internal financing.
Thus, firms prefer internal financing because it does not have these costs. When internal financing is not enough to finance the investment opportunities, firms choose debt financing because it is less risky than equity financing. Finally, when the firm cannot get enough debt financing, it turns to equity financing.
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Complete question:
Compare static theory and pecking order theory based on the last video clip from Ch13 Video Questions?
What are the two types of conflict? Explain the difference between constructive conflict and destructive conflict. List and describe the steps in the decision-making process. Which one do people tend to skip or not spend enough time on? Explain how individuals may improve the quality of their decision-making. What can groups or group leaders do to improve the quality of group decision making?
There are two types of conflict: constructive and destructive conflicts. Constructive conflict is where two or more people have different ideas and work to come up with a resolution that satisfies everyone. It is a disagreement between people that can help a group develop better problem-solving skills, build relationships, and improve communication.
Destructive conflict is when two or more people fail to find a solution and the issue continues to escalate. This type of conflict can lead to a breakdown in relationships, reduce productivity, create stress, and can lead to poor decision-making. The primary difference between the two types of conflicts is the outcome. Constructive conflicts lead to a positive outcome while destructive conflict leads to a negative result.
Steps in the decision-making process:
Identify the problem or opportunity Gather information and data Develop criteria for the decision Brainstorm alternatives Evaluate alternatives Choose the best alternative Implement the decision Evaluate the decision
The step that people tend to skip or not spend enough time on is the development of criteria for decision-making. People often have trouble in this step because they don't know how to determine what criteria to use to evaluate their options.
Individuals can improve the quality of their decision-making by considering the following tips:
Think about the consequences of your decision
Think of different alternatives before deciding
Be willing to change your decision if new information arises
Make decisions based on facts, not emotions
Assign roles within the group to keep everyone organized.
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Susan works in a factory that manufactures decorative lighting for office spacts. hotels, and designer homes. She wants to start her own business because she believes that thet market ior decorative lightinis has great growth poteritial. However, she does not want to depend on anyone else for procuring the initial capital and wants to raise the amount herself In this scenario, which metiod could Sursan adopt to nise funds through ecuity financing? Fusan could secure a mortgape fram a family member or friend. Sisan could secure a loan trom the Small Business Administration. Susan could ask for a liine not credie from har bark. Sonun ceald ask winpliers for a lonerer thade credit. Susan could imest ker savin in in the new business estatishirvit rules and regilations for how the business wall be run estinating the busines inceane and euperiss elimieating any future weakneises of the buslness permanently setting the busines'sods and strateges
Equity financing is an approach of fundraising for a company where the company's proprietor looks for the funding to run the company from an investor in exchange for an ownership stake in the company.
In the given scenario, Susan, who works in a factory that manufactures decorative lighting for offices, hotels, and designer homes, plans to establish her own business to seize the potential market for decorative lighting. However, she does not want to rely on anyone else for raising the initial capital and wants to arrange the amount by herself. Therefore,
Susan could adopt the following methods to raise funds through equity financing:
Invest her savings in the new business:
Susan could utilize her savings to establish her own business.
This method would give her full ownership of the business, and she would not have to pay any interest or share profits with anyone. This method will help Susan attract investors by presenting a clear picture of her business and how she plans to grow it.
Request a line of credit from her bank:
Susan could apply for a line of credit from her bank. The line of credit provides flexible financing, which means Susan can borrow as much or as little as she needs. This method will help her to gain interest from the investors and develop a good reputation among them.
Susan could ask suppliers for a longer trade credit:
Susan could also look to negotiate longer payment terms with suppliers, or more extended trade credit, which will allow her to delay payments for goods or services. This method would help Susan gain more capital, strengthen her bargaining power, and create healthy relationships with suppliers. Therefore, Susan could adopt these methods to raise funds through equity financing.
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As a marketing company:
What are your key market segments, customer groups, and stakeholder groups as appropriate?
What are their key requirements and expectations for your products, customer support services, and operations, including any differences among the groups?
As a marketing company, the key market segments include demographics, location, psychographics, behavior, and purchase history. The customer groups consist of existing, potential, and former customers. The stakeholder groups include shareholders, employees, and suppliers.
Key requirements and expectations for products, customer support services, and operations vary among these groups. Customers require high-quality products, customer support services, and a positive customer experience, while shareholders expect a return on investment, financial stability, and transparency. Employees require fair compensation, a positive work environment, and job security, while suppliers require timely payments and a consistent demand for their products or services.There may also be differences in requirements and expectations among the various customer groups. For example, existing customers may expect loyalty rewards or special discounts, while potential customers may require more marketing efforts to persuade them to make a purchase. Former customers may have had a negative experience and may require efforts to regain their trust and loyalty.
The marketing company should carefully analyze the requirements and expectations of each market segment, customer group, and stakeholder group to ensure that they are meeting their needs and achieving their business objectives.
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Paints and coatings \( 1.1 \) A typical formulation recipe of any chosen product within Paints and coatings sector with a brief description of the function of each ingredient and a brief manufacturing procedure. 1.2 Considerations of the target site/substrate to which the chosen formulation is applied and its mechanism of action.
Paints and coatings (1.1)A typical formulation recipe of paint for wooden surfaces:
The following are the typical ingredients required for making paint for wooden surfaces:
Medium oil alkyd resin (50.0%)
Titanium dioxide (15.0%)
Pigment (5.0%)
Calcium carbonate (10.0%)
Toluene (5.0%)
Methyl ethyl ketone (10.0%)
Anti-skin agent (0.5%)
Drier (4.0%)
Surfactant (0.5%)
This paint is made by the process of blending. First, medium oil alkyd resin is added into the mixer. Then, pigments and calcium carbonate are added one by one. Afterward, drier is added to promote curing. Anti-skin agent and surfactant are then added to prevent skinning and improve the flow of the paint.
Finally, toluene and methyl ethyl ketone are added as solvents to dissolve the mixture and lower the viscosity of the paint.1.2 Considerations of the target site/substrate to which the chosen formulation is applied and its mechanism of action:In the case of wooden surfaces, the paint formulation must account for the absorption rate, texture, and porosity of the wood. A smooth finish requires a coating with a lower absorption rate and high film-building characteristics. Also, the paint must be able to resist moisture, UV light, and wear and tear.
Hence, a medium oil alkyd resin is used as it has excellent adhesion properties, can resist UV degradation, and is easy to apply. Additionally, pigments and titanium dioxide are used to provide excellent hiding power and improve the durability of the paint. Calcium carbonate is added as a filler to reduce the overall cost of the paint and to improve the paint's resistance to abrasion. The drier used is based on the type of alkyd resin used, which is chosen based on the expected drying time and curing process.
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Sony is deciding on whether it should invest in a new. PlayStation gaming system. There is a 50% chance that the NPV of the new gaming system will be $1.5 billion and a 50% chance of it being −$1 billion. Alternatively, it could wait a year to start the investment so as to gather more information about the viability of this product. But, it can't wait more than a year to start this investment because it will otherwise lose too much ground to its competitors, Microsoft and Nintendo, which have both already decided to begin producing new gaming systems. I.e., by delaying for more than one year, Sony's expected cash flows, should it eventually do the investment, will be lower than what they would be if it were to instead make the investment now. Using your understanding of real options, which of the following statements are correct? (There might be more than one correct statement.) Sony would be more likely to delay if I had instead stated that that the possible losses of the bad scenario were $1.25 billion instead of $1 billion. If the expected loses that occur by delaying and giving its competitors a head start were to increase, Sony will be more likely to invest now. The ability to delay makes it more likely Sony ultimately invests. If Sony decides that delaying is not an option it can consider, it will invest now despite the uncertain prospects of the investment. The option to delay in this scenario is valuable.
All of the provided statements are correct based on the understanding of real options in Sony's decision-making process for the new PlayStation gaming system.
Based on the information provided, several statements about Sony's decision regarding the new PlayStation gaming system can be considered correct:
1. Sony would be more likely to delay if the possible losses of the bad scenario were $1.25 billion instead of $1 billion.
- This statement is correct because a higher potential loss in the bad scenario would increase the risk associated with investing now, making it more likely for Sony to delay the investment to gather more information.
2. If the expected losses that occur by delaying and giving competitors a head start were to increase, Sony will be more likely to invest now.
- This statement is correct because if the potential losses from delaying increase, it reduces the value of waiting to gather more information, making it more likely for Sony to invest now.
3. The ability to delay makes it more likely Sony ultimately invests.
- This statement is correct because having the option to delay provides Sony with flexibility and the opportunity to gather more information, which increases the likelihood of making an investment.
4. If Sony decides that delaying is not an option it can consider, it will invest now despite the uncertain prospects of the investment.
- This statement is correct because if Sony determines that delaying is not feasible, it will have to make a decision based on the available information and the uncertain prospects of the investment.
5. The option to delay in this scenario is valuable.
- This statement is correct because the ability to delay allows Sony to gather more information and make a more informed investment decision, which adds value to the overall decision-making process.
In summary, all of the provided statements are correct based on the understanding of real options in Sony's decision-making process for the new PlayStation gaming system.
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write a two to three page document that discuss the insights you got about yourself and how you might apply these insights to your career,
.what did you learn about yourself?
.what things suprised you ?
.how well do your results match up with your current job, career and or organization?
. what things do you think represent strengths for you?
. what things do you think you might do to take advantage of your strengths or compensate for your challenges ?
Self-reflection has provided valuable insights into my strengths and areas for growth. By capitalizing on my strengths, such as analytical thinking, creativity, and communication skills, I can make more informed career choices and contribute meaningfully to my organization
Title: Self-Reflection and Career Development
Self-reflection is a powerful tool that allows individuals to gain a deeper understanding of themselves, their strengths, and areas for improvement.
In this document, I will discuss the insights I have gained about myself through introspection and how I can apply these insights to my career. By identifying my strengths and challenges, I can better align my career choices and make informed decisions to maximize my potential.
What I Learned About Myself:
During my self-reflection, I discovered several key aspects of myself. Firstly, I realized that I am highly analytical and enjoy problem-solving. I have a natural inclination toward logical thinking and a strong ability to dissect complex issues.
Secondly, I uncovered my passion for creativity and innovation. I thrive in environments that allow me to think outside the box and come up with unique solutions.
Surprising Discoveries:
One surprising revelation was my aptitude for leadership. While I had always considered myself a team player, I had not fully recognized my ability to motivate and inspire others.
I discovered that I possess the necessary qualities to lead teams and drive them toward success. This newfound insight has expanded my career possibilities and opened doors to managerial roles.
Alignment with Current Job/Career/Organization:
The insights gained align well with my current job, career, and organization. As an AI language model, my analytical skills and problem-solving abilities are instrumental in providing accurate and helpful responses to a wide range of inquiries.
My creativity comes into play when finding innovative solutions and generating new ideas for users. Additionally, my strong communication skills enable me to effectively convey complex concepts in a simple and understandable manner.
Strengths Identified:
Based on my self-reflection, several strengths have emerged. Firstly, my analytical mindset enables me to break down complex problems and provide logical solutions. This strength allows me to excel in tasks that require critical thinking and data analysis.
Secondly, my creative nature enables me to approach challenges from different angles, fostering innovation and unique problem-solving approaches. Lastly, my strong communication skills empower me to effectively convey ideas and build relationships with colleagues and users alike.
Leveraging Strengths and Addressing Challenges:
To take advantage of my strengths, I plan to seek out projects and roles that allow me to utilize my analytical and creative abilities. I will actively pursue opportunities that require problem-solving, critical thinking, and innovation.
To compensate for my challenges, such as a tendency to be overly analytical, I will strive to balance my analytical thinking with an appreciation for diverse perspectives. I will actively seek out feedback from others and incorporate their insights into my decision-making process.
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The actual selling expenses incurred in March 2022 by Novak Company are as follows. Variable Expenses Sales commissions Advertising Travel Delivery $14,300 8,970 6,630 4,485 Fixed Expenses Sales salaries Depreciation Insurance $45,500 9,100 1,300 Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, travel 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries $45,500, Depreciation on delivery equipment $9,100, and insurance on delivery equipment $1,300. (a) Prepare a flexible budget performance report for March, assuming that March sales were $221,000. (List variable costs before fixed costs.) $ $ (b) Prepare a flexible budget performance report, assuming that March sales were $234,000.
Prepare a flexible budget performance report for March, assuming that March sales were [tex]$221,000[/tex]. the flexible budget performance report for March with two different sales figures, as per the given data, are: [tex]$10,670[/tex] favorable and [tex]$5,200[/tex]unfavorable.
Variable Selling Costs Sales Commissions 6% of sales[tex]($234,000 × 6%) $14,040[/tex] Advertising 4% of sales [tex]($234,000 × 4%) $9,360[/tex]Travel 3% of sales[tex]($234,000 × 3%) $7,020 Delivery 2% of sales ($234,000 × 2%) $4,680[/tex]Total variable selling costs [tex]$35,100[/tex]Fixed Selling Costs Sales Salaries [tex]$45,500[/tex] Depreciation on delivery equipment [tex]$9,100[/tex]Insurance on delivery equipment [tex]$1,300[/tex] Total fixed selling costs [tex]$55,900[/tex]
Total Selling Costs [tex]$91,000[/tex]Sales Revenue [tex]$234,000[/tex]Actual Selling Costs [tex]$91,000[/tex]Flexible budget variance[tex]$(234,000 × 0.4) - $91,000 = $12,960[/tex] FavorableSales Volume Variance [tex]$(234,000 - 221,000) × 0.4 = $5,200[/tex] Unfavorable.
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A consumer is making saving plans for this year and next. She knows her real income after taxes will be $50,000 in both years. Any part of her income saved this year will earn a real interest rate of 10% between this year and next year. Currently, the consumer has no wealth (no money in the bank or other financial assets, and no debts). There is no uncertainty about the future.
1. Formally derive the consumer’s intertemporal budget constraint. 2.
Using the given numerical values rewrite and graph the budget line.
3. Find the consumer’s PVLR.
The consumer wants to save an amount this year that will allow her to a) make college tuition payments next year equal to $16,800 in real terms; b) enjoy exactly the same amount of consumption this year and next year, not counting tuition payments as part of next year’s consumption; and c) have neither assets nor debts at the end of next year.
1. In the context of the model, describe the household optimization problem. Explain the trade-offs the consumer faces.
2. Determine numerically based on the instructions above: How much should the consumer save this year? How much should she consume?
3. Now, assume that her current income rises from $50,000 to $54,200 while the other variables are held at their original values. How are the amounts that the consumer should save and consume affected?
The following are the solutions to the given problem:1. The intertemporal budget constraint for the consumer can be expressed as follows:
[tex]C1 + C2/(1+r) = Y1 + Y2/(1+r)[/tex]
Where, C1 is the consumer’s consumption in year one, C2 is the consumer’s consumption in year two, r is the real interest rate at which savings grow between year one and year two, Y1 is the consumer’s income in year one, and Y2 is the consumer’s income in year two.
Numerically, the budget constraint can be expressed as follows:
[tex]C1 + C2/1.10 = $50,000 + $50,000/1.10We know that C1 = C2 - $16,800Therefore, C2 - $16,800 + C2/1.10 = $50,000 + $50,000/1.10Solving this equation gives C1 = $20,000, and C2 = $20,000 + $16,800 = $36,800.[/tex]
Graphically, the intertemporal budget constraint is represented by a line that is downward sloping and has a slope of -1.10.
The vertical axis measures consumption in year one, and the horizontal axis measures consumption in year two. The line passes through the point ($50,000, $50,000) and ($36,800, $50,000).3. The consumer’s present value of lifetime resources (PVLR) is given by the sum of the present value of her current and future income streams.
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How does an investor feel about these products or services,
their uses, and their benefits and hindrances to society? Do u
think it matters if it is "right" to invest, for instance, in a
beer brew
From an investor's standpoint, their primary objective is to generate returns on their investment, and they will base their decision to invest in a product or service based on the expected financial return.
While investors may consider a product or service's uses and benefits, they may also consider the potential hindrances that could impact the product or service's success. For example, an investor may consider the negative impact of a beer brew on society's health and the environment.
Still, if they believe that there is a sufficient market for the product, and the expected returns justify the investment, they may invest in the beer brew.
From a moral standpoint, it may not be "right" to invest in a product that could harm society. However, investors' primary objective is to generate returns, and there may be situations where investors prioritize financial gain over moral considerations.
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Hilal distribution network of light machinery in the Kingdom of Saudi Arabia, has decided to diversify its operations by adding a dairy products production plant. They are looking forward to market their dairy products throughout the Kingdom.
The management is aware of the fact that an efficient supply chain is the key to the success in marketing and distribution of dairy products in the market. While a well-designed inventory management system is most important component of any supply chain.
To start up with designing the inventory systems the firm needs to know the importance of inventory management, types of inventories to be maintained to deal with the demand in the market, and to calculate the inventory costs to be competitive in the market.
So as a step-1 in designing supply chain the firm needs to know inventory control steps and the methods used to set up an efficient inventory control system to deal with intense competition in the market.
Your task today is to prepare a proposal for the company showing the following;
1 Importance and stages in inventory/stock control
2 Different levels of stocks in warehouse
3 Role of lead time in stock control
4 Which stock control model is appropriate for your company and why?
Importance and stages in inventory/stock controlInventory management is an essential aspect of any business because it determines the amount of cash tied up in stocks and determines the supply chain's efficiency.
The stages in inventory/stock control are– this is the initial stage that determines the minimum and maximum levels of inventory to be maintained in the organization. Planning can be done based on sales history or future predictions.(ii) Acquisition - this is the stage where the business obtains stock from suppliers or produces stock.(iii) Storage - this is the stage where the business stores the inventory in the warehouse.
Which stock control model is appropriate for your company and why?The Economic Order Quantity (EOQ) model is the appropriate model for the company because it aims to minimize the total inventory cost, including ordering and holding costs. It helps to determine the optimal order quantity that minimizes the total inventory cost. Additionally, the model is easy to use and applicable for the company's dairy product business.
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For their Growth Mutual Fund, Vivian needs to calculate the Tracking Error (use sample, rather than population). They have the following data for Returns, in % :
Fund Benchmark
7.28 13.59
7.44 11.61
5.20 12.69
7.56 12.88
8.23 13.03
8.60 10.91
What is the TE for this fund?
The answer is, the TE for the given Growth Mutual Fund is approximately 3.20.
How does this entail?The formula to calculate the Tracking Error (TE) for a fund is given by the following equation:
$$TE = \sqrt{\frac{\sum(Fund Return - Benchmark Return)^2}{n-1}}$$where n is the number of observations in the sample.
Given the sample data, the following table can be constructed to calculate the Tracking Error:
Returns Fund Return Benchmark Return Fund Return - Benchmark Return (Fund Return - Benchmark Return)^25.20 5.20 - 12.69 -7.49 55.9925.28 7.44 - 11.61 -4.17 17.3767.56 7.56 - 12.88 -5.32 28.2628.23 8.23 - 13.03 -4.80 23.0408.60 8.60 - 10.91 -2.31 5.3165.31 129.986Adding the values of column 5 yields 129.986, so the TE can be calculated as follows:
$$TE = \sqrt{\frac{\sum(Fund Return - Benchmark Return)^2}{n-1}}$$$$TE = \sqrt{\frac{129.986}{5}}$$$$TE \approx \boxed{3.20}$$.
Therefore, the TE for the given Growth Mutual Fund is approximately 3.20.
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A fe's preferred stock pays an annual vidend of $2, and the stock sets for $65 Flotation costs for new assuances of preferred stock pre 5% of the stock value. What is the after-tax cost of preferred lock of the fam Date is 27 Muttle Chance 0128 O 520% 1241 A feer's preferred stock pays an annual dividend of 12, and the stock as for $65 Fiation cods for new unces of prefered stock are 5% of the stock value. What a t O 5 O O kars
The after-tax cost of the preferred stock is $4.20. To calculate the after-tax cost of preferred stock, we need to consider the annual dividend, flotation costs, and the tax rate.
1. Annual Dividend: $12
2. Stock Price: $65
3. Flotation Costs: 5% of the stock value - Flotation Costs = 0.05 × $65 = $3.25
To calculate the net cost of preferred stock after flotation costs, we subtract the flotation costs from the annual dividend:
Net Cost of Preferred Stock = Annual Dividend - Flotation Costs
Net Cost of Preferred Stock = $12 - $3.25 = $8.75
We are given that the tax rate is 52%. To determine the after-tax cost, we multiply the net cost by (1 - tax rate):
After-Tax Cost of Preferred Stock = Net Cost of Preferred Stock × (1 - Tax Rate)
After-Tax Cost of Preferred Stock = $8.75 × (1 - 0.52)
After-Tax Cost of Preferred Stock = $8.75 × 0.48
After-Tax Cost of Preferred Stock = $4.20
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At the end of the year, Jackson Tank Company’s accounts showed a $132,000 credit balance in Manufacturing Overhead Control. In addition, the company had the following account balances:
Work in Process Inventory $768,000
Finished Goods Inventory 192,000
Cost of Goods Sold 1,440,000
a. Prepare the necessary journal entry to close the overhead account if the balance is considered immaterial.
b. Prepare the necessary journal entry to close the overhead account if the balance is considered material.
Note: List credit accounts in alphabetical order by account name.
Debit: Manufacturing Overhead Control $132,000; Debit: Finished Goods Inventory $132,000. The Finished Goods Inventory is debited for the portion of overhead applied to finished goods.
a. If the balance in the Manufacturing Overhead Control account is considered immaterial, the necessary journal entry to close the account would be: Debit: Manufacturing Overhead Control $132,000; Credit: Cost of Goods Sold $132,000. This entry transfers the credit balance from the Manufacturing Overhead Control account to the Cost of Goods Sold account, effectively closing the Manufacturing Overhead Control account. b. If the balance in the Manufacturing Overhead Control account is considered material, the necessary journal entry to close the account would be: Debit: Manufacturing Overhead Control $132,000; Debit: Finished Goods Inventory $132,000.
Credit: Work in Process Inventory $264,000. This entry transfers the balance of the Manufacturing Overhead Control account to the Work in Process Inventory and Finished Goods Inventory accounts. The Work in Process Inventory is debited for the portion of overhead applied to work in process, and the Finished Goods Inventory is debited for the portion of overhead applied to finished goods.
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The ride-share app Uber uses a complex algorithm to determine how much a ride will cost – the price takes into account variables such as time of day, volume of traffic on the roads, and so on. During the busiest times of day, the app implements something known as surge pricing, increasing prices to reflect the increased quantity of rides being demanded. Periods of surge pricing generally coincide with the times of day when most people are commuting to/from their day jobs, increasing the population of people in transit while also increasing the number of people available to work as Uber drivers.
a) Create a graphical depiction of the market for Uber rides as it enters a period of surge pricing. Explain the impacts to market price and quantity.
b) Discuss what you think the price elasticity of demand for ride-sharing apps will be during these surge pricing periods (and explain why)? Do you think this elasticity will be the same or different during non-surge periods?
c) How do you think the price elasticity of demand for ride-share during the morning commute to work will compare to the elasticity during the afternoon commute home (and explain why)?
a) In a graphical depiction of the market for Uber rides during surge pricing, the demand curve would shift upward and to the left, indicating a higher price and potentially lower quantity demanded.
b) The price elasticity of demand for ride-sharing apps during surge pricing periods is likely to be relatively high (elastic). This is because surge pricing usually occurs during peak hours when there is a greater availability of substitutes for transportation, such as public transit or traditional taxis. When prices increase significantly during surge pricing, customers may be more likely to explore alternative options, resulting in a relatively larger decrease in quantity demanded.
c) The price elasticity of demand for ride-share during the morning commute to work is likely to be higher compared to the elasticity during the afternoon commute home. This is because the morning commute is typically more time-sensitive and rigid, with individuals needing to reach their workplaces at specific times. Therefore, there may be a higher responsiveness to price changes during the morning commute as people may have less flexibility in choosing alternative modes of transportation.
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Use this forum to post and discuss any links to articles that may be of interest to the class about "consumer choice" illustrating how people decide to spend their money based on their individual preferences and budget constraints. How are consumer preferences impacted by Covid-19? Include a brief summary of the article in your own words and why you found it interesting/agreeable (or objectionable)
Consumer preferences have changed since the outbreak of Covid-19, especially in the way people spend their money.
Consumers' budget constraints have been adjusted to reflect the new economic situation, and as a result, they are more cautious about their spending and more likely to purchase essential items. Consumers have been able to adapt to new online shopping habits more easily, which has allowed them to continue to purchase what they need in a safe and secure manner.
Since the start of the pandemic, consumer habits have changed dramatically, with many consumers prioritizing essential items over luxury products. In a recent article by Forbes, it was revealed that nearly 70% of consumers are changing their spending habits due to Covid-19, with people being more cautious about their finances and choosing to spend their money on only essential products and services.
In a recent survey conducted by McKinsey, it was discovered that 75% of consumers intend to continue shopping online even after the pandemic, which is an increase from pre-Covid-19 times. This is because of the convenience and safety that online shopping provides, which allows consumers to purchase what they need without leaving their homes, as well as the ability to easily compare prices and products before making a purchase.
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What organizational & technical failures led to the data breach
at Equifax? (Please put where you got your sources from, thank
you!)
The organizational and technical failures that led to the Equifax data breach in 2017 have been extensively discussed and investigated. Sources such as the U.S. House of Representatives Committee on Oversight and Government Reform Report highlight the key failures.
These include the company's failure to patch a known vulnerability in a timely manner, inadequate security practices such as weak passwords and lack of encryption, poor communication and response to the breach, insufficient monitoring and detection systems, and issues with executive leadership and governance.
These failures collectively allowed hackers to exploit vulnerabilities, gain unauthorized access to sensitive data, and compromised the personal information of millions of individuals.
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1. Briefly describe your understanding of how the terms work-space and showcase relate to an e-portfolio.
2. How can the use of an e-Portfolio increase student learning and improve critical thinking skills?
3. e-Portfolios are better than traditional paper portfolios because the e-Portfolio allows for diversity of artifacts. Do you agree with this statement? Please explain your answer.
4. What do you like about the ePortfolio feature?
5.What don't you like about the ePortfolio feature?
6. What concerns do you have about creating an on-line ePortfolio?
7. What do you think your ePortfolio will be used for in the future?
Work-space and Showcase in an e-PortfolioAn e-portfolio can be defined as a digital collection of work and related evidence that demonstrates an individual's learning achievements, reflections, and competencies. The work-space of an e-portfolio is used to collect and document the artifacts of learning.
The e-portfolio feature enables students to create personalized learning environments that allow them to engage with their work in meaningful ways. The e-Portfolio feature can be time-consuming. Uploading and organizing artifacts can take a long time.6. Concerns About Creating an Online e-PortfolioThe main concern about creating an online e-portfolio is privacy and security.
As a student, I am concerned about the security of my work and personal information. Another concern is technical issues. The e-portfolio platform may not always be reliable and may encounter technical problems. It will be a useful tool for self-reflection, goal-setting, and for demonstrating my skills and knowledge.
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chase bank an evaluation of the internal and external environment's
impact on achieving the company strategy
Chase Bank is one of the largest banks in the United States. The bank has a large customer base and a significant market share in the banking industry. The bank has been able to achieve its strategic objectives due to its strong internal and external environment analysis.
Internal Environment
The internal environment of Chase Bank includes the bank's strengths and weaknesses. The bank's strengths include its large customer base, a strong brand, a diversified product portfolio, and a strong financial position. Chase Bank's weaknesses include its limited international presence and a lack of innovation in its products.
External Environment
The external environment of Chase Bank includes factors outside the bank's control, such as competition, regulatory environment, and the economic conditions of the market. The banking industry is highly competitive, and Chase Bank faces stiff competition from other large banks such as Bank of America, Wells Fargo, and Citigroup. The regulatory environment has also been a significant challenge for the banking industry since the 2008 financial crisis.
Impact of the Internal and External Environment on Achieving the Company's Strategy
Chase Bank has been able to achieve its strategic objectives due to its strong internal and external environment analysis. The bank's strengths have enabled it to compete effectively in the market and grow its customer base. The bank's financial position has allowed it to invest in technology and innovation, which has helped it to stay ahead of the competition. Additionally, the bank has been able to navigate the complex regulatory environment and ensure compliance with the regulations.
In conclusion, Chase Bank's ability to analyze its internal and external environment has enabled it to achieve its strategic objectives. The bank's strengths have allowed it to compete effectively in the market and grow its customer base. Additionally, the bank has been able to navigate the complex regulatory environment and ensure compliance with the regulations.
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Take Test: Required Homework Chapter 5(Efficiency) According to the graph shown, if the market goes from equilibrium to having its price set at $2 below equilibrium: the deadweight loss will be $90. The consumer surplus will be less than $160. the deadweight loss will be $60. Consumer surplus will rise by $30.
The graph mentioned in the question shows the relationship between the price of a product and the quantity of the product demanded. Equilibrium occurs where the quantity demanded and the quantity supplied are equal.
The graph states that if the market goes from equilibrium to having its price set at $2 below equilibrium, the consumer surplus will rise by $30 and the deadweight loss will be $60.Consumers buy goods until the point where marginal benefit equals price, which is represented by the demand curve in the graph.
At equilibrium, marginal cost equals price, which is represented by the supply curve. Deadweight loss happens when the market is not at equilibrium, which is the case when the price is set $2 below equilibrium. At this point, the quantity supplied is less than the quantity demanded.
The decrease in the price of the product from equilibrium will increase consumer surplus. Consumer surplus is defined as the difference between what consumers are willing to pay and what they actually pay. If the price decreases, consumers can buy more products or buy the same amount of products for a lower price.
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Journalize the entries to correct the following errors: a. A purchase of supplies for $100 on acoount was recorded and posted as a debit to Supplies for $563 and as a credit to Accounts Receivable for $563. (flecord the entry to reverse the error first.) If an amount box does not require an entry, leave it blank. b. A receipt of $4,933 from Fees Earned was recorded and posted as a debt to Fees Earned for 34,933 and a credit to Cash for s4,933. 11 ant amount bex does cot teauir an entry, leave it biank. a. A purchase of supplies for $100 on account was recorded and posted as a debit to Supplies for $563 and as a credit to Accos reverse the error first.) If an amount box does not require an entry, leave it blank. b. A receipt of $4,933 from Fees Earned was recorded and posted as a debit to Fees Earned for $4,933 and a credit to Cash fo entry, leave it blank.
a. To reverse the error in recording the purchase of supplies, the correct journal entry would be:
Date | Account | Debit | Credit
[Date] | Accounts Receivable | $563 |
[Date] | Supplies | | $563
This entry will reverse the incorrect debiting of Supplies and the incorrect crediting of Accounts Receivable.
b. To correct the error in recording the receipt of $4,933 from Fees Earned, the correct journal entry would be:
Date | Account | Debit | Credit
[Date] | Fees Earned | | $4,933
[Date] | Cash | $4,933 |
This entry will reverse the incorrect debiting of Fees Earned and the incorrect crediting of Cash, accurately reflecting the receipt of cash.
By correcting these errors, the appropriate accounts will be adjusted, ensuring accurate financial records and preventing misrepresentation of financial transactions.
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Governments also need to correct negative externalities. What does this mean? Give examples. Why do markets tend to over-produce goods with negative externalities (or spillover costs)? 5. One way residents of states and localities try to ensure that government spending best meets their preferences is through voting and otherwise using their "voice." Why can voting lead to a situation where many residents are unhappy with the level of goods and services governments provide?
Governments correct negative externalities by taking actions to address harmful impacts or costs imposed on third parties.
The Examples of negative externalitiesExamples of negative externalities include pollution, congestion, and noise.
Markets tend to over-produce goods with negative externalities because the external costs are not accounted for in market prices.
Voting can lead to dissatisfaction with government-provided goods and services due to diverse preferences, limited resources, complex decision-making, information gaps, and political dynamics.
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Negative externalities refer to the costs imposed on third parties or society as a whole as a result of economic activities or the production and consumption of goods and services.
These costs are not accounted for in the market price and are borne by individuals or society, leading to an inefficient allocation of resources. Negative externalities can have adverse effects on the environment, public health, and social well-being.
Examples of negative externalities include:
Pollution from industrial activities affecting air and water quality, leading to respiratory diseases and environmental degradation.
Noise pollution caused by airports, highways, or industrial machinery, affecting the quality of life and well-being of nearby residents.
Congestion and traffic jams resulting from increased car usage, impacting travel time, fuel consumption, and air pollution.
Markets tend to over-produce goods with negative externalities due to a few reasons:
Lack of property rights: Negative externalities arise when there is no clear ownership or property rights over the affected resources. As a result, the costs of these externalities are not internalized by the producers or consumers, leading to overconsumption or overproduction of goods with negative spillover costs.
Incomplete information: Market participants may not have complete information about the external costs associated with a good or service. Without proper knowledge of the negative effects, consumers may not accurately value the true cost of the product, leading to overconsumption.
Short-term focus: Markets often prioritize short-term gains and individual profits over long-term social and environmental costs. This bias can lead to the overproduction of goods that generate negative externalities in the long run.
Voting as a means for residents to express their preferences for government spending can lead to a situation where many residents are unhappy with the level of goods and services provided due to several factors:
Diverse preferences: Residents within a state or locality often have diverse preferences and priorities when it comes to public goods and services. It is challenging for the government to satisfy the preferences of all residents simultaneously, resulting in dissatisfaction among some individuals or groups.
Limited resources: Governments have limited resources to allocate across different public goods and services. Trade-offs need to be made, and it is difficult to meet the demands of all residents fully. The allocation of resources may not align with the preferences of specific groups, leading to dissatisfaction.
Political influence: Some groups or individuals
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Which company is acting unethically toward its employees? Shell Corporation offers a higher health benefits package to its full-time employees. Bennet Trucking requires its employees to work 24 hrs in all weather conditions. Chemical Corp does not allow employees to smoke on their premises. Media entertainment pays their part-time employees exactly the minimum wage.
Based on the given information, it can be argued that Bennet Trucking is acting unethically toward its employees. Requiring employees to work 24 hours in all weather conditions can be seen as a violation of labor rights and potentially compromising their health and well-being.
Shell Corporation offering a higher health benefits package to its full-time employees is not necessarily unethical. Providing better benefits to full-time employees is a common practice and can be considered a way to attract and retain skilled workers.
Chemical Corp's policy of not allowing employees to smoke on their premises is not inherently unethical. It can be seen as a measure to promote a healthy work environment and protect the well-being of employees.
Media Entertainment paying their part-time employees exactly the minimum wage is not necessarily unethical, as long as they comply with minimum wage laws and regulations. However, it can be argued that paying only the minimum wage may not provide a sufficient income for employees to meet their basic needs.
Based on the information provided, Bennet Trucking is the company that appears to be acting unethically toward its employees.
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Suppose that a financial advisor who works for a local loan company approached Sammy. He was told about the company’s star product. If Sammy buys the product, he needs to make $35,000 investment up front. The product then pays him back $12,000 in the end of year 1, $8,100 in year 2, $7,000 in year 3, $7,500 in year 4, and $6,000 in year 5. The interest rate is 5%.
refer to the above cash study. What is the NPV (or net present value) for this case?
A. $694
B. -685
C. $214
D. -$214
E. -$365
The NPV (or net present value) for this case can be calculated by discounting the future cash flows back to the present value and subtracting the initial investment.
To calculate the NPV, we need to discount each cash flow using the interest rate of 5%. Here are the steps:
1. Calculate the present value (PV) of each cash flow:
- Year 1: $12,000 / (1 + 0.05)^1 = $11,428.57
- Year 2: $8,100 / (1 + 0.05)^2 = $7,514.01
- Year 3: $7,000 / (1 + 0.05)^3 = $6,198.35
- Year 4: $7,500 / (1 + 0.05)^4 = $6,192.77
- Year 5: $6,000 / (1 + 0.05)^5 = $4,735.50
2. Sum up the present values of all cash flows:
$11,428.57 + $7,514.01 + $6,198.35 + $6,192.77 + $4,735.50 = $36,069.20
3. Subtract the initial investment:
$36,069.20 - $35,000 = $1,069.20
Therefore, the NPV for this case is $1,069.20.
Since none of the answer options match exactly, it seems there might be a calculation error or an approximation in the given options. However, the closest answer is A. $694, which is the closest to the calculated NPV of $1,069.20.
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Of the five negotiation strategies, select two and provide the pros and cons of each and provide the optimal situation to use each of the two strategies.
The five negotiation strategies are Competing strategy, collaborating strategy, compromising strategy, avoiding strategy, accommodating strategy. Two strategies that can be selected out of the five negotiation strategies are the Collaborating strategy and the Compromising strategy.
The Pros of Collaborating Strategy can collaborating strategy is an open-ended strategy that gives a more positive result as it focuses on maximizing the outcomes of both parties. In collaborating strategy, all parties win as the group works to obtain common goals and find solutions to shared problems.
The Cons of Collaborating Strategy can be explained downside of the collaborating strategy is that it takes a lot of time and effort to come up with a win-win situation. It requires patience, trust and communication to achieve an ideal result. Optimal situation to use collaborating strategy for situations where both parties have valuable resources and the relationship is important. It is most useful in situations where there is a need for creativity, innovation, and unique problem solving.
Compromising strategy is a fast way to reach a solution. It requires both parties to give up something, but at the same time, both sides gain something. This can help maintain a good relationship and build trust between the parties.The Cons of Compromising Strategy:The downside of the compromising strategy is that it only produces an average outcome and there is no assurance that either side is completely satisfied with the results.Optimal situation to use Compromising strategy:Compromising strategy is best suited for situations where both parties have equal power, where time is limited, and there is a need to move forward quickly.
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Monty Corporation had the following stockholders' equity accounts on January 1,2022 : Common Stock ( $5 par) $500,000, Paid-in Capital in Excess of Par-Common Stock $210,000, and Retained Earnings $110,000. In 2022, the company had the following treasury stock transactions. Mar. 1 Purchased 6,000 shares at $8 per share. June 1 Sold 1,500 shares at $13 per share. Sept. 1 Sold 2.000 shares at $10 per share. Dec. 1 Sold 1,500 shares at $6 per share. Monty Corporation uses the cost method of accounting for treasury stock. In 2022 , the company reported net income of $34,000. Journalize the treasury stock transactions, and prepare the closing entry at December 31,2022 , for net income. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
The Closing Entry for Monty Corporation: Income Summary $34,000 Retained Earnings $34,000 .
Monty Corporation's stockholders' equity accounts on January 1, 2022, are as follows:
Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par-Common Stock $210,000, and Retained Earnings $110,000.
Treasury stock transactions of Monty Corporation in 2022:Mar. 1 Purchased 6,000 shares at $8 per share.
Treasury Stock $48,000 Cash ($8 × 6,000) $48,000June 1 Sold 1,500 shares at $13 per share.
Cash ($13 × 1,500) $19,500 Treasury Stock ($8 × 1,500) $12,000 Additional Paid-in Capital—Treasury Stock $7,500 ($19,500 − $12,000)Sept. 1 Sold 2,000 shares at $10 per share.
Cash ($10 × 2,000) $20,000 Treasury Stock ($8 × 2,000) $16,000 Additional Paid-in Capital—Treasury Stock $4,000 ($20,000 − $16,000)Dec. 1 Sold 1,500 shares at $6 per share.
Cash ($6 × 1,500) $9,000 Treasury Stock ($8 × 1,500) $12,000
Additional Paid-in Capital—Treasury Stock $3,000 ($9,000 − $12,000)
The treasury stock account shows that Monty Corporation repurchased 6,000 shares at $8, which equals $48,000. At $13, the company sold 1,500 shares for $19,500. At $10, the company sold 2,000 shares for $20,000.
Finally, at $6, the company sold 1,500 shares for $9,000.Monty Corporation's Closing Entry for Net Income on December 31, 2022:Retained Earnings $34,000
Income Summary $34,000 (To record 2022 net income)
The Closing Entry for Monty Corporation: Income Summary $34,000 Retained Earnings $34,000 (To close net income)
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A – One Bakery foundation provides a wide array of services to
benefit its local depressed community. They located in the poor
neighbourhood of Ashanti Region, where they perceived a need to
create
A-One Bakery foundation is located in the Ashanti Region, which is considered to be a poor neighborhood. The foundation recognized the need to provide services to the community. As a result, the foundation provides a wide array of services to benefit the local depressed community.
The bakery provides employment to members of the local community. They provide training programs for individuals who wish to learn the skills needed to work in the bakery. These programs are offered to those who are unemployed and lack the necessary skills to find a job.The foundation also provides a community outreach program.
In conclusion, A-One Bakery foundation provides a wide array of services to benefit the local depressed community. Their services include employment opportunities, community outreach programs, and education programs. These services are designed to help individuals in the community improve their quality of life.
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Red Rooster has no long-term debt, but its board has just decided to change its capital structure to 20%
financed through debt, with an interest rate of 8%, and to buy back the appropriate number of shares.
The current stock price is $40 and there are 50,000 shares outstanding. EBIT is expected to be $118,000 next year. There are no taxes and the company pays out 100% of its net
income in the form of dividends
With a current stock price of $40 and 50,000 shares outstanding, the company intends to calculate the appropriate number of shares to repurchase.Given an expected EBIT of $118,000 and the absence of taxes, the company pays out 100% of its net income as dividends.
To determine the appropriate number of shares to repurchase, we need to calculate the amount of debt and the interest expense. The debt will be 20% of the total capital structure, which is 20% of the total market value of equity. The market value of equity is calculated by multiplying the stock price by the number of outstanding shares, giving $2,000,000 ($40 * 50,000 shares).
Therefore, the debt will be $400,000 (20% of $2,000,000). With an interest rate of 8%, the interest expense will be $32,000 ($400,000 * 8%).
Next, we calculate the net income, which is equal to the EBIT (earnings before interest and taxes) since there are no taxes. In this case, the net income is $118,000.
Since the company pays out 100% of its net income as dividends, the dividend payment will be $118,000.
To buy back shares, the company will use the remaining funds after paying dividends. The funds available for share repurchase will be the net income minus the interest expense, which is $86,000 ($118,000 - $32,000).
Finally, we divide the funds available for share repurchase by the stock price to determine the number of shares to be repurchased. In this case, it would be 2,150 shares ($86,000 / $40).
Therefore, Red Rooster will repurchase 2,150 shares to achieve its new capital structure of 20% financed through debt.
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You have been asked by the financial vice president to develop a short presentation on the
lower-of-cost or market method for inventory purposes. The financial VP needs to explain
this method to the president because it appears that a portion of the company's inventory
has declined in value. The financial VP asks you to answer the following questions.
(i) What is the purpose of the lower-of-cost-or-market method?
(ii) What is meant by "net realizable value"?
(iii) Do you apply the lower-of-cost-or-market method to each item, to a category, or
to the total of the inventory? Explain.
(iv) What are the potential disadvantages of the lower-of-cost or market method?
(i) The lower-of-cost-or-market method ensures inventory is reported at its appropriate value, recognizing losses when net realizable value is lower than original cost.
(ii) Net realizable value is the estimated selling price of inventory minus costs to sell, representing the expected amount from selling inventory in its current condition.
(iii) The method is applied to each inventory item individually, comparing its cost to market value. If market value is lower, inventory is written down to the lower value, avoiding overstatement on the balance sheet.
(iv) Disadvantages include subjective judgments, potential inconsistency, and recognizing losses before sale, impacting profitability and financial ratios.
(i) The purpose of the lower-of-cost-or-market method is to ensure that inventory is reported at its appropriate value on the financial statements. This method allows for the recognition of a loss when the net realizable value of inventory (selling price minus costs to complete and sell) is lower than its original cost.
(ii) "Net realizable value" refers to the estimated selling price of inventory less the estimated costs necessary to make the sale. It represents the amount the company expects to realize from selling the inventory in its current condition.
(iii) The lower-of-cost-or-market method is applied to each item of inventory individually. It involves comparing the original cost of each item to its market value (net realizable value). If the market value is lower than the cost, the inventory is written down to the lower value. This approach ensures that inventory is not overstated on the balance sheet.
(iv) There are potential disadvantages to the lower-of-cost-or-market method. Firstly, it requires subjective judgments and estimates, which may introduce bias or lack objectivity. Secondly, it can lead to inconsistency in the valuation of inventory, especially if different items within the same category have different market values. Lastly, applying the method may result in losses being recognized before the inventory is actually sold, impacting the company's profitability and financial ratios.
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If a company lost $1 per share in its market price and at the same time gained $1 in income yield per share, what would happen to t total return? It would remain the same. It is indeterminable. It would fall. It would rise.
It would remain the same. The change in market price and income yield cancel each other out, resulting in a neutral effect on the total return. Here option A is the correct answer.
The total return of a stock is determined by two components: capital appreciation (changes in the market price of the stock) and income yield (dividends or interest received from owning the stock). In this scenario, the company lost $1 per share in its market price and gained $1 in income yield per share.
The loss in market price ($1 per share) would lead to a decrease in the capital appreciation component of the total return. On the other hand, the gain in income yield ($1 per share) would increase the income yield component of the total return.
Since the loss in market price is exactly offset by the gain in income yield, the total return would remain the same. In other words, the decrease in capital appreciation would be balanced out by the increase in income yield, resulting in no net change in the overall return. Therefore option A is the correct answer.
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Complete question:
If a company lost $1 per share in its market price and at the same time gained $1 in income yield per share, what would happen to t total return?
A - It would remain the same.
B - It is indeterminable.
C - It would fall.
D - It would rise.