Financial Statements and Ratios-Bike-With-Us Corporation, a specialty bicycle parts replacement venture, was started last year by two former professional bicycle riders who had substantial competitive racing experience, including the Tour de France. The two entrepreneurs borrowed $50,000 from members of their families, and each put up $30,000 in equity capital. Retail space was rented, and $60,000 was spent for fixtures and store equipment. Following is the abbreviated income statement and balance sheet information for the Bike-With-Us Corporation after one year of operation.
BIKE-WITH-US CORPORATION INCOME STATEMENT
Sales $325,000
Operating costs 285,000
Depreciation 10,000
Interest 5,000
Taxes 6,000
Cash $1,000
Receivables 30,000
Inventories 50,000
Fixed assets, net 50,000
Payables 11,000
Accruals 10,000
Long-term loan 50,000
Stockholders’ equity 60,000
A. Prepare an income statement and a balance sheet for the Bike-With-Us Corporation using only the information provided above.
B. Calculate the current ratio, quick ratio, and NWC-to-total-assets ratio.
C. Calculate the total-debt-to-total-assets ratio, debt-to-equity ratio, and interest coverage.
D. Calculate the net profit margin, sales-to-total-assets ratio, and the return on assets.
E. Calculate the equity multiplier. Combine this calculation with the calculations in Part D to show the ROE model with its three components.

At the end of 2011, the XYZ city deferred Br. 40,000 in property taxes, which means that the city did not recognize this amount as revenue in the 2011 financial statements. Instead, it carried it forward as a liability on the beginning balance sheet for 2012.

In 2012, the Br. 40,000 deferred property taxes are recognized as revenue, reflecting an increase in the city's financial resources. This recognition follows the accrual accounting principle, where revenue is recognized when it is earned, regardless of when the cash is received. By recognizing the deferred property taxes as revenue in 2012, the city accurately reflects its financial position and performance for that year.

The recognition of the deferred property taxes as revenue in 2012 will impact the city's income statement, increasing its revenue figure, and potentially affecting its net income or surplus. It also signifies the city's ability to generate resources from property taxes, which can contribute to funding public services and projects within the XYZ city.

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Answer:

The product is defective

Explanation:

Answer:

A product is defective

Explanation:

Product recalls occur as a result of safety or quality concerns related to a manufacturing or design defect in a product that may harm its users. Recalls may negatively affect a company's stock as they are expensive and can damage a firm's reputation, leading to declining sales.

Answer:

The answer is C. only liable on pre-formation debt until a novation occurs.

Explanation:

The corporation and the third-party agree to release the promoter from liability and to substitute the corporation in place of the promoter as the party liable on the contract. May be express or implied.

Answer:

$1510.28

Explanation:

The monthly on the purchase of new sports car can be  computed using the pmt excel function as shown below:

=pmt(rate,nper,-pv,fv)

rate is APR of 7.15% expressed in monthly terms i.e 7.15%/12

nper is the number of months that payments would last i.e 60 months

pv is the cost of the new sports car i.e $76000

fv is the balance owed after the 60th payment i.e $0

=pmt(7.15%/12,60,-76000,0)=$1510.28

Answer with Explanation:

Identifying industry’s dominant economic features helps in understanding what key factors ensures its survival and success. The understanding of business environment also helps in making informed decisions that generates value for the company. Some of the important industry's dominant economic features are as under:

Market Size and Growth Rate: This helps in understanding how large is the market. If the market size very large then it means we have running customers which means we rarely have repetitive customer. Hence the chances of survival are more in a relative large market as apposed to small market. Similarly the market growth rate is also an attractive factor because greater the market growth rate the greater would be chances of success because new customer entrants are continuously growing with great numbers. This great pace will generate great sales in the future as well.

Scope of Rivalry: The number of competitors operating in the market and their size is often termed as scope of rivalry. Furthermore, the greater are the number of competitors in the market the lower is the bargaining power of the competitors and vice versa. This means that the profit earning will be affected with the population of competitors in the market as every competitor will try to attract the customers by discounting their product prices. The survival of new entrant in such a market is very difficult.

Level of Product Differentiation: If are considering a car market of a developing country like Indonesia, Pakistan, Mongolia, Uzbekistan, etc which have higher population and the level of purchasing power of people very low than developed countries like US and UK. This means that the level of product differentiation will be very low. Hence the survival of highly differentiated product in such market is very difficult. So the level of product differentiation may alter your decision making process.

Technology Adoption Cost: If the technology adoption cost is very low then it more risky market as the product may get obsolete very early and the life-cycle of the product will be very shorter. This means that the revenue generated from the product would be lower as the demand of new technology takes all the sales away.

Profitability of the Market Segment: The profit margin of the product of a particular market segment is higher and the level of risk is also within a acceptable range then it will be strategically important because the amount invested will be recovered earlier because higher profit margins. We can also increase the sale of the product by reducing the price in market which prizes its customer at a high, this will increase the demand and profits of the company. Hence it is a successful and survival ensuring market.

All of the aforementioned statements regarding the career agency distribution system are correct except: Personal producing general agents (PPGAs) are commonly hired to manage career agencies.

An agency can be defined as the ability of an individual to identify valued goals, priorities and desired outcomes, so as to enhance the purposeful pursuit of those goals and desired outcomes proactively, efficiently and effectively.

A career agency distribution system can be defined as a type of distribution system that typically involves an insurance company making use of its own commissioned agents, in order to sell and deliver insurance policies.

In conclusion, a career agency distribution system is the most common system that is used for distributing individual life insurance products.

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Complete Question:

All of the following statements regarding the career agency distribution system are correct EXCEPT:

It uses agents who primarily if not exclusively represent one insurer.

Personal producing general agents (PPGAs) are commonly hired to manage career agencies.

There are two types, the general agency system and the managerial system.

The managerial form of career agency system uses company employees as the agency managers.

Answer:

C, I think is the answer.

Explanation:

Answer:

Break-even point (dollars)= $660,000

Explanation:

Giving the following information:

The​ company's contribution margin ratio is 50​%

The break-even point is $600,000 in sales revenue.

Fixed expenses increase by $30,000.

To calculate the new break-even point in sales, we need to determine the break-even point for the increase in fixed costs:

Proportional break-even point (dollars)= increase in fixed costs/ contribution margin ratio

Proportional break-even point (dollars)= 30,000/0.5

Proportional break-even point (dollars)= $60,000

New break-even point:

Break-even point (dollars)= 600,000 +  60,000

Break-even point (dollars)= $660,000

If  an OCO order is entered, and EUR/USD trades below 1.2775 and above 1.2790, the resulting trade is to: Sell at 1.2790 and again at 1.2775.

OCO order which full meaning one cancels the other can be defined as a way in which  both limit order as well as stop order can be place at once.

Since the trade target is 1.2790 in which the stop loss or limit loss is 1.2775 in a situation were EUR/USD trades below the limit loss (1.2775) and above the target (1.2790) the trading result will be to sell at 1.2790 and then sell again at 1.2775.

Inconclusion  what would be the resulting trade is to:Sell at 1.2790 and again at 1.2775.

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Answer:

The answer is "$100,000"

Explanation:

Please find the complete question in the attached file.

Given value:

\(\text{Employees salary}= \$ 80,000\\\\\text{Insurance}= \$ 6,000\\\\\text{Utility cost}=\$ 5,000\\\\\text{Supplies}= \$ 9,000\)

\(\text{Annual Explicit costs}= ?\)

Formula:

\(\text{Annual Explicit costs}= \bold{\text{Employees salary}+ \text{Insurance}+ \text{Utility cost}+ \text{Supplies}}\)

                                   \(= \$ 80,000 + \$ 6,000 + \$ 5,000 + \$ 9,000\\\\= \$ 80,000 + \$ 20,000\\\\= \$ 100,000\)

Using the dividend discount model with given growth rates and required rate of return, the estimated stock price for NBM common stock is calculated by discounting future dividends, resulting in the stock price.

To estimate the stock price of NBM common stock, we can use the dividend discount model (DDM) which calculates the present value of future dividends.

First, let's calculate the dividends for the next 7 years:

Year 1: $2.25 (given)

Year 2: $2.25 * (1 + 18%) = $2.655

Year 3: $2.655 * (1 + 18%) = $3.1399

Year 4: $3.1399 * (1 + 18%) = $3.7029

Year 5: $3.7029 * (1 + 16.5%) = $4.3177

Year 6: $4.3177 * (1 + 16.5%) = $5.0273

Year 7: $5.0273 * (1 + 6.5%) = $5.3485

Next, let's calculate the present value of these dividends using the required rate of return of 11%:

PV = D1 / (1 + r) + D2 / (1 + r)^2 + ... + D7 / (1 + r)^7

PV = $2.25 / (1 + 0.11) + $2.655 / (1 + 0.11)^2 + $3.1399 / (1 + 0.11)^3 + $3.7029 / (1 + 0.11)^4 + $4.3177 / (1 + 0.11)^5 + $5.0273 / (1 + 0.11)^6 + $5.3485 / (1 + 0.11)^7

Finally, summing up the present values, we can estimate the stock price:

Stock Price = PV

Calculating this equation will give the estimated stock price of NBM common stock.

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Answer:

WACC - new project = 6.408% rounded off to 6.41%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure can consist of one or more of the following components namely debt, preferred stock and common equity. The WACC is calculated as follows,

WACC = wD * rD * (1 - tax rate)  +  wP * rP  +  wE * rE

Where,

We first need to calculate the WACC of the company and then adjust it for the new project.

WACC = 35% * 3.28%  +  65% * 10.4%

WACC = 7.908%

As the new project is less risky and has an adjustment factor of -1.5%, the required rate of return for the new project will be,

WACC - new project = 7.908%  -  1.5%  

WACC - new project = 6.408% rounded off to 6.41%

Based on the amount the client paid on October 1, the unearned revenue as at December 31 is $9,000.

First, find the monthly revenue:

= 12,000 / 12

=$1,000

From October 1 to December 31 is 3 months so 3 months of revenue has been recognized.

Unearned revenue is:

= 12,000 - (3 x 1,000)

= $9,000

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Laura, the Associate Director of a non-profit agency, must balance her leadership and management skills to address staff turnover, workload issues, and communication problems. Steps such as open communication, providing necessary information and support, and prioritizing staff well-being can build staff confidence.

Laura can use her management skills to ensure that her managers have access to the necessary information and resources to properly allocate work to their staff. She can also use her leadership skills to improve communication with staff and create a more positive work environment.

A combination of both management and leadership skills would be ideal in this setting. To build staff confidence, Laura can implement measures such as regular feedback and recognition, providing training opportunities, involving staff in decision-making, and addressing their concerns and needs.

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--The given question is incomplete, the complete question is given

" Leadership and Management Case Study

Laura is the Associate Director of a non-profit agency that provides assistance to children and families. She is the head of a department that focuses on evaluating the skill-building programs the agency provides to families. She reports directly to the agency leadership. As a whole, the agency has been cautious in hiring this year because of increased competition for federal grant funding. However, they have also suffered high staff turnover. Two directors have left, as well as three key research staff, and one staff person from the finance department.

Laura has a demanding schedule that requires frequent travel; however, she supervises two managers, who in turn are responsible for five staff members each. Both managers have been appointed within the last six months.

Manager 1: Kelly has a specific background in research. She manages staff who provide research support to another department that delivers behavioral health services to youth. Kelly supports her staff and is very organized; however, she often takes a very black and white view of issues. Upper level leadership values Kelly’s latest research on the therapeutic division’s services. Kelly is very motivated, driven, and expects the same from her staff.

Manager 2: Linda has a strong background in social science research and evaluation. She manages staff that work on different projects within the agency. She is known as problem solver and is extremely supportive of her staff. She is very organized and has a wealth of experience in evaluation of family services. Linda is very capable and can sometimes take on too much.

The managers are sensing that staff are becoming over-worked as everyone takes on increased responsibilities due to high staff turnover. Staff have also mentioned that Laura’s “glass half-empty” conversation style leaves them feeling dejected. In addition, Laura has not shared budgets with her managers, so they are having difficulty appropriately allocating work to staff. Laura said she has not received sufficient information from the finance department to complete the budgets. The finance department said they have sent her all the information they have available.

As staff become distressed, the managers are becoming frustrated. They feel like they are unable to advocate for their staff or problem solve without key information like the departmental budget.

How can Laura most effectively use both management and leadership skills in her role as associate director? What combination of the two do you think would work best in this setting?

What steps could be taken to build staff confidence?"--

The income elasticity of demand is 0.8, indicating that the good is a normal good and consumers buy and consume more of it as their income increases.

To calculate the income elasticity of demand, we use the formula:

Income Elasticity of Demand = (Percentage Change in Quantity Demanded) / (Percentage Change in Income)

Given that the income increased from 8000 to 10000 birr, which is a 25% increase, and the quantity purchased increased from 10 units to 12 units, which is a 20% increase, we can plug these values into the formula:

Income Elasticity of Demand = (20% / 25%) = 0.8

Since the income elasticity of demand is positive (0.8), we can conclude that the good is a normal good. Normal goods are those for which demand increases as income rises, indicating that consumers buy and consume more of the good as their income increases.

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The calculated NPV is negative, indicating that the present value of expected cash flows does not exceed the start-up cost of the project. In other words, the project is expected to generate a net loss.

To determine whether Wally's Walleyes should introduce the new product, we can calculate the net present value (NPV) of the project. The NPV measures the present value of expected cash flows, taking into account the required rate of return.

To calculate the NPV, we need to discount the cash flows using the required rate of return (15 percent). The formula for calculating NPV is:

NPV = Cash Flow Year 1 / (1 + Required Rate of Return)^1 + Cash Flow Year 2 / (1 + Required Rate of Return)^2 - Start-up Cost

\(NPV = $4,500 / (1 + 0.15)^1 + $4,300 / (1 + 0.15)^2 - $7,800\)

\(NPV = $4,500 / 1.15 + $4,300 / (1.15)^2 - $7,800\)

NPV = $3,913.04 + $3,537.41 - $7,800

NPV = -$350.55

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The best place where Carlos can invest his money in a low-risk investment would be to buy some shares.

This refers to the business plan that is made to put some money into a business venture with the aim of getting profit after a time period.

Hence, we can see that based on the fact that Carlos is young and has about $3,000 to put in a low-risk investment, it would be good for him to buy shares in a reputable company and get his money back with interest after some years.

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The cost of goods manufactured (COGM) is the cost of all the products that a company has manufactured during a period.

It is calculated by adding the beginning finished goods inventory to the total manufacturing costs, and then subtracting the ending finished goods inventory.

In the income statement you provided, the cost of goods manufactured is calculated as follows:

COGM = $92,000 + $3,251,000 - $127,000 = $3,224,000

Therefore, the cost of goods manufactured for Leone Company is $3,224,000.

Here is the formula for calculating COGM:

COGM = Beginning finished goods inventory + Total manufacturing costs - Ending finished goods inventory

The total manufacturing costs include direct materials, direct labor, and manufacturing overhead.

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Answer:

true

Explanation:

I think the answer is true

The issue of the place of performance needs to be resolved before the repair job can proceed. This is an important aspect of the agreement that needs to be agreed upon by both parties. I

The issue at hand is the place of performance for the car repair job that Bokassa offered to do for Obanga. While Bokassa has a garage business in Addis Ababa, Obanga's car is parked in Adama, which is quite a distance from Bokassa's garage. It is not clear whether Bokassa will have to travel to Adama to perform the repair job or whether Obanga will have to tow the car all the way to Addis Ababa.

It is important to note that the terms of their agreement did not specify the place of performance. In contract law, this is a crucial element that needs to be agreed upon by both parties. In the absence of a specific agreement on the place of performance, the default rule is that the performance should be done at the place where the contract was made, which in this case is Addis Ababa.

However, in this situation, it might be impractical for Obanga to tow his car all the way to Addis Ababa. It might also be costly and time-consuming for Bokassa to travel to Adama to perform the repair job.

Therefore, the best course of action would be for Obanga and Bokassa to have a discussion and come to a mutual agreement on the place of performance that would be convenient for both parties.

In conclusion, t is always better to clarify the terms of a contract before proceeding to avoid any misunderstandings or disputes that may arise in the future.

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A free enterprise system was necessary because it allows people to do what they do best while trading for the rest, of free enterprise, works. Competition is a driving force behind the free enterprise, resulting in increased efficiency and lower consumer prices.

The benefits of the US Free Enterprise System to producers and consumers include the freedom to own private property, producers producing at their own profit, consumers and producers having control over themselves, increased efficiency, and adequate use of available resources.

A free enterprise system allows individuals to make their own economic decisions without being constrained by the government. It enables consumer supply and demand to determine the success or failure of an economic venture.

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Explanation:

I don't have direct knowledge of the organization you are currently working in. However, I can provide a general example to help illustrate the systems characteristics of an organization. Let's consider a fictional manufacturing company called "ABC Manufacturing."

Objective:

The objective of ABC Manufacturing is to efficiently produce and deliver high-quality products to its customers while maximizing profitability. The organization aims to maintain a competitive edge in the market by consistently meeting customer demands and optimizing its operations.

Components:

1. Human Resources: The employees of ABC Manufacturing form a crucial component. They include production workers, managers, engineers, and support staff. Each employee contributes their skills and expertise to ensure smooth operations. For example, production workers assemble products, engineers design new prototypes, and managers oversee the overall functioning of the organization.

2. Production Facilities: The physical infrastructure, including factories, warehouses, and equipment, is another vital component. These facilities house the production lines, machinery, and storage areas necessary for manufacturing products. The efficient functioning of the production facilities is essential to meet production targets and ensure the timely delivery of goods.

3. Supply Chain and Logistics: The supply chain component involves managing the flow of materials, resources, and finished products. This includes sourcing raw materials, coordinating with suppliers, inventory management, and distribution logistics. Effective supply chain management ensures that the right materials are available at the right time, minimizing delays and reducing costs.

Interrelationships among Components:

The components of ABC Manufacturing are interrelated and interconnected, forming a system that works together to achieve the organization's objectives. Here are a few examples of interrelationships among these components:

1. Human Resources and Production Facilities: The production facilities rely on the skills and efforts of the employees. Human resources ensure that the right talent is hired, trained, and deployed in the production process. They also provide support and maintenance services to ensure the smooth functioning of the production facilities.

2. Production Facilities and Supply Chain: The production facilities rely on the timely availability of raw materials from the supply chain. Efficient coordination between production and supply chain teams is necessary to maintain optimal inventory levels and avoid production delays.

3. Supply Chain and Human Resources: The supply chain team collaborates with human resources to forecast demand, plan workforce requirements, and align production schedules accordingly. Effective communication and coordination between these components ensure that the production process meets customer demand and avoids excessive inventory or stockouts.

By viewing ABC Manufacturing through a systems perspective, we recognize that the organization is a complex interplay of various components working together to achieve a common objective. Understanding the interrelationships and dependencies among these components helps in identifying areas for improvement and optimizing the overall performance of the organization.

Answer:Dashen Bank s.c is a company where I am working in it. The company’s objective is to maximize its profit and become from the lists in best class banks in Africa. To achieve this objective it has its own system which contains the following components

• A banking software called FLEXCUBE which is the core software which accomplishes the majority of the banking day to day activities e.g. cash withdrawal, cash deposit, account opening general leger account postings etc.

• CATPS(card application tracking and processing system) is a component of a system which is used to capture ATM card applications  and authorize the processed/ captured applications in order to produce the cards

• Amole admin/internet banking application is used to create an access to the customers such that user name and passwords and and link bank accounts so customers can transfer money, make payments at home.

The above listed components have interrelation each other. E.g. in order to produce cards using CATPS, the customer must have a bank account with precise customer data such that signature, photo etc. so these stated things  i.e. account opening, signature and photo uploading activities are processed by FLEXCUBE software. In the same manner, in order to get an access to the bank account using amole/ internet banking, the customer must have properly opened bank account with customer signature and photo which is also processed by using FLEXCUBE software.

Answer:

c

Explanation:

1. While eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.

Eliminating intermediaries such as elimination agents and wholesalers reduce operating expenses, but it also has associated opportunity costs that businesses need to consider. One of the primary costs is the loss of the expertise and value-added services that intermediaries offer to businesses and customers. Eliminating intermediaries may result in businesses taking on additional responsibilities and expenses such as marketing, distribution, and logistics.

This may result in the need for additional staff and resources to ensure that products reach customers on time. Furthermore, eliminating intermediaries may also result in reduced customer access to products, as intermediaries are often responsible for finding new markets and customer segments. In this case, businesses may need to invest additional resources to market and promote their products to reach new customers.

In conclusion, while eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.

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Answer:

D. Creating a special exhibit of featured products

Explanation:

Just did a quiz.  a pex

Yuki is setting up a display in the hardware store where he works. Creating a special exhibit of featured products this activity most likely involves. The correct option is D.

Exhibitions and events are effective marketing strategies. They provide you a chance to advertise your goods or services to an audience that may be unfamiliar with you or your business. Additionally, they provide a chance to network with both current and new clients. Continue reading to learn about more advantages of exhibitions.

Your product displays play a crucial role in attracting customers. You can easily draw customers in and emphasize your product's standout characteristics with a well-designed POP display. One risk of shopping is being lost in the sea of merchandise.

Thus, the ideal selection is option D.

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The current bond price of Vulcan Inc. given the coupon payments and par value is $900.35.

The current bond price can be found by discounting the coupon payments of the bond and the par value of the bond with the yield to maturity of the bond.

Coupon payments = percent coupon x par price

7.3% x 1000

0.073 x 1000 = $73

Current price of the bond = 73 / (1.093) + 73 / (1.093²) + 73 / (1.093³) + 73 / (1.093^4) + 73 / (1.093^5) + 73 / (1.093^6) + 73 / (1.093^7) + 1000 / (1.093^7) = $900.35

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