A specific product has demand during lead time of 350 units, with a standard deviation during lead time of 80 units. Management wants a 99% service level. a) What value of Z should be applied? b) How many units should be carried as safety stock? c) What is the appropriate reorder point?
The appropriate reorder point is 419.91 units and the units should be carried as safety stock is 233.74 units.
Explanation: A 99% service level is required by the management. Hence the Z value that corresponds to this level of service is to be determined. Therefore, the Z value is given as 2.33.a) The value of Z that is to be applied is 2.33.b) The number of units that should be carried as safety stock can be calculated as follows: Safety Stock = Z × Standard Deviation Safety Stock = 2.33 × 80Safety Stock = 186.4 units.
Therefore, the number of units to be carried as safety stock is 186.4 units) The reorder point that is appropriate for this situation can be calculated as follows: Reorder Point = Lead Time Demand + Safety Stock Reorder Point = 350 + 186.4Reorder Point = 536.4 units Therefore, the appropriate reorder point is 536.4 units.
The following formulae have been used to calculate the values: Safety Stock = Z × Standard Deviation Reorder Point = Lead Time Demand + Safety Stock
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Which type of traditional media can potentially reach a larger audience than print media, but is more expensive than newspapers and magazines and can be complicated to produce?
Answer:
Ad industry
Explanation:
The Ad industry in one such type of a traditional media who have a large audience than the other traditional media like the print media. But unfortunately, the ad media is much more expensive or costly when compared to print media such as magazines and newspapers and it is also complicated to produce.
michelle works in retail and cant decide what products to include i the stores front window display what is the first step she should take to solve this problem
The available options are:
A. List the options.
B. Evaluate the decision/choice.
C. State the problem.
D. Determine the pros and cons.
Answer:
State the problem.
Explanation:
In a situation like this, it is expected that the first step to take to solve the problem is that Michelle should understand the reason, she wants to put the product on the window display. This includes knowing what she will benefit by placing the product on the window display and which product she wants to display. This process which is the first step in the problem-solving technique is known as STATE THE PROBLEM.
Hence, the right answer is State the Problem.
What can marketers learn from the diffusion of innovation theory? (Choose every correct answer.) a. How to create buzz and hype around a new product or service b. How to target early adopters and innovators c. How to create effective marketing campaigns for mainstream consumers d. How to extend the life cycle of a product or service
Marketers can learn several things from the diffusion of innovation theory, including: b. How to target early adopters and innovators,How to create effective marketing campaigns for mainstream consumers.etc
How to target early adopters and innovators: The theory explains that certain individuals are more likely to adopt new products or services early on, and marketers can target these individuals through tailored messaging and channels.
c. How to create effective marketing campaigns for mainstream consumers: The theory also outlines how mainstream consumers adopt new products or services, providing insights into how marketers can effectively reach and persuade this audience.
d. How to extend the life cycle of a product or service: By understanding the different stages of the adoption process, marketers can develop strategies to extend the life cycle of a product or service, such as by targeting late adopters or emphasizing different benefits at different stages.
a. How to create buzz and hype around a new product or service: While the theory doesn't necessarily provide specific tactics for creating buzz and hype, it does suggest that early adopters and innovators play a crucial role in spreading awareness and excitement about new products or services. Marketers can leverage this by targeting these individuals and providing them with the tools and information they need to share their experiences with others.
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Katie Company had 40,700 shares of $2 par value common stock outstanding prior to a 40% common stock dividend declaration and distribution. The market value of the common stock on the declaration date was $10. Which of the following statements incorrectly describes the effect of recording the common stock dividend?Additional Paid in capital increased $130,240.Total stockholders' equity remained the same.Additional paid-in capital remained the sameRetained earnings decreased $32,560.
The statement "Additional paid-in capital remained the same" incorrectly describes the effect of recording the common stock dividend.
When a company declares a stock dividend, it distributes additional shares of stock to its existing shareholders. As a result, the total number of shares outstanding increases, but the proportional ownership of each shareholder remains the same.
In this case, Katie Company had 40,700 shares of $2 par value common stock outstanding before the dividend declaration. With a 40% stock dividend, an additional 16,280 shares (40% of 40,700) would be distributed. After the dividend, the total number of shares outstanding would be 57,980 (40,700 + 16,280).
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imagine that you are a member of group with 50 members. if 12 of you contribute to the provision of a public good, it will be provided. the cost of contributing is less than the benefit is worth. if you expect that 5 of your fellow group members (aside from you) will contribute, what is your best response?
Assuming you know that ten individuals from the gathering (beside yourself) will contribute, you shouldn't contribute .
What is a "Public Good"?A commodity or service that is made available to all members of a society is referred to as a "public good" in economics. These services are typically managed by governments and collectively funded by taxation.
Law enforcement, national defense, and the rule of law are examples of public goods. In addition, the term "public goods" refers to more fundamental necessities like access to clean air and water. The free-rider problem is a significant issue connected to public goods. It is possible for some members of society to use the good despite refusing to pay for it because public goods are made available to everyone, regardless of whether each individual pays for them. Turnstile jumpers on a subway system, for instance, are essentially taking a "free ride" on the revenues provided by those who pay taxes.
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Corita is a salesperson with maryland’s best realty and is slammed with clients right now; so much so that she wants another agent with her firm, spencer, to handle listing corita’s own home. What does spencer need to make sure to do?
Spencer needs to make sure to disclose that he and Corita work together at the same firm.
Widely speaking, the definition of a 'company' in the subject of economics is any business enterprise that seeks to make earnings through production or selling services or products – or each – to customers. As an instance, one of the most common uses of this term is for 'regulation companies,' which normally promote offerings in relation to the regulation.
A firm is an enterprise that seeks to make earnings through the sale of goods and services. The term company is synonymous with commercial enterprise or agency. Corporations can perform below several distinctive systems, along with sole proprietorships and groups.
Examples of firms are a sole proprietorship, partnership, restricted legal responsibility organization, or organization. The time period is barely greater than generally associated with a partnership.
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Assume you were just assigned as lead auditor for a new e-commerce client. This is your client’s first year in business. Identify general business strategies that might explain your client’s decision to enter the e-commerce space with the likes of giants such as Amazon. Considering these strategies, identify potential business risks that can lead to material misstatements in your client’s financial statements. Be sure to include new start-up and e-commerce risks. What are some other things your team will need to consider during the planning phase for this audit?
E-commerce has benefits and risks for businesses. As the lead auditor, it is important to assess potential risks and evaluate the client's internal controls, website security protocols, and compliance with regulations during the audit planning phase.
There are several general business strategies that might explain a new client's decision to enter the e-commerce space with giants such as Amazon. These could include a desire to reach a larger customer base, expand into new markets, reduce overhead costs associated with traditional brick-and-mortar stores, and capitalize on the growing trend of online shopping.
However, these strategies come with potential business risks that can lead to material misstatements in the client's financial statements, including inadequate inventory controls, website security vulnerabilities, and cyberattacks. Other new start-up and e-commerce risks may include rapid changes in technology, fluctuating demand for products, and evolving regulations.
During the planning phase for this audit, the audit team will need to consider several factors. First, they will need to assess the client's internal controls related to e-commerce activities, including inventory management, order fulfillment, and payment processing.
Additionally, the team will need to evaluate the client's website security protocols, such as encryption and authentication methods, to ensure that customer data is protected. The team will also need to consider the client's compliance with applicable laws and regulations, including those related to online sales tax and data privacy.
In summary, entering the e-commerce space can provide significant opportunities for businesses, but it also comes with unique risks that must be carefully considered.
As lead auditor, it will be important to identify potential business risks and evaluate the client's internal controls, website security protocols, and compliance with applicable regulations during the planning phase for the audit.
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Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 5 bushels of corn or 50 bushels of oats per year. There are 20 workers in Cornland and 20 workers in Oatland. If the two countries do not trade, Cornland will produce and consume 400 bushels of corn and 100 bushels of oats, while Oatland will produce and consume 60 bushels of corn and 400 bushels of oats. If each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by
Answer:
see. I hope it's helpful for you lolExplanation:
i need friend lol can you my friendWhat is one major effect of specialization on an economy?
O A. Self-sufficiency becomes more important as many businesses
shut down.
B. Opportunity costs for trade rise as businesses are slow to change.
C. Labor becomes more divided as workers focus on certain skills.
D. Voluntary exchange declines as fewer countries can trade
internationally.
Answer: It’s C
Explanation: read it before you check it because the order might be different in different test.
The one major effect of specialization on an economy is that the Labor becomes more divided as workers concentrate on definite skills.
What is specialization in an economy?Specialization is a manufacturing method in which an organization concentrates on producing a narrow range of products in order to increase efficiency.
Specialization has one cardinal determinant on an economy, that the labor becomes more and more divided as workers focus on specific abilities.
Therefore, option C is correct.
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NGPF Activity Bank Paying for College
5.4 COMPARING the types of student loans
PLEASE HELP ME WITH THIS I HAVE TO TURN IN TODAY I NEED A ANSWER ASAP
There are generally two types of student loans: federal student loans and private student loans. The federal student loan is given below.
How much can a student get a student loan?Education loans are intended to pay for living expenses while the borrower is pursuing a degree, as well as tuition, books, and supplies.
As there is no cap on the largest debt that may be approved under the student loan program. The maximum amount for NRI students is Rs. 20 lakhs, and for elite institutions, Rs. 30 lakhs.
Federal student loans: These loans are provided by the government and provide a number of advantages, including reduced interest rates, repayment schedules based on income, and loan forgiveness opportunities. Federal student loans come in a variety of forms, including Direct Subsidized Loans: Undergraduate students who can prove they have a need for the money can apply for these loans. When the student is enrolled in school, the government covers the interest on these loans. Direct Unsubsidized Loans: These loans can be obtained by graduate and undergraduate students alike and don't need proof of need. While the student is enrolled in school, interest is accruing on these loans. Graduate students and parents of dependent undergraduate students may apply for Direct PLUS loans. They have higher interest rates and demand a credit check than other loan plans.Learn more about loans, here:
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Consider the following items: (a) Decrease in accounts receivable (f) Gain on the sale of equipment (b) Issuance of common stock (g) Depreciation expense (c) Increase in interest receivable (h) Payment of dividends (d) Purchase of land (i) Decrease in utilities payable (e) Decrease in accounts payable (j) Increase in inventory How many of these items would be added to net income when using the indirect method to prepare the operating activities section of the statement of cash flows
Answer:
(a) Decrease in accounts receivable
(g) Depreciation expense
Explanation:
Operating activities: It involves those transactions that after net income impact the working capital. This will subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and a rise in current liabilities.
It will manage some adjustments in working capital. For addition, the depreciation expenses are added to the net profit and the loss on the selling of assets is added, while the benefit on the sale of assets is deducted
Based on the above explanation, the items which are to be added in the operating activities are
(a) Decrease in account receivable
(g) depreciation expense
Out of all Other items would be deducted and all other items belong to investing and financing activity
if the minimum wage is set above the equilibrium market wage, it group of answer choices does not affect the market equilibrium. is lower than firms are willing to pay for labor. is effective and reduces unemployment. increases unemployment.
When the minimum wage is set above the equilibrium market wage then it increases unemployment.
How can the minimum wage increase unemployment?When the minimum wage is set at such a point that it is above the equilibrium market wage, then there is a good chance that this can lead to increased unemployment in an industry, market, or nation.
The reason for this is simply that employers would not be willing to pay such a high minimum wage that it above the equilibrium market wage. They will therefore hire less workers than before, thereby meaning more people out of a job.
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Karen hires Madison, a college student, to baby sit her daughter, Amelia, when she goes out in the evenings Karen wants Amelia to go to bed by BPM and only eat healthy snacks Amelia, however, can be difficult when Madison tries to get her to go to bed at 8PM and whines until Madison gives her potato chips Amelia usually gives in and lets her stay up late eating unhealthy snacks As a result, Karen finds that it is difficult to get Amelia up in time to get her to daycare the next morning What kind of problem is this?
The problem described in this scenario is a **childcare management issue**.
It involves Karen hiring Madison as a babysitter to take care of her daughter, Amelia, but facing challenges in enforcing bedtime and ensuring healthy eating habits. Amelia's resistance to going to bed at 8PM and her preference for unhealthy snacks are causing difficulties in establishing a proper routine. This, in turn, leads to Amelia staying up late, experiencing difficulties waking up in the morning, and potentially causing tardiness for daycare. Effectively managing Amelia's bedtime and snack choices is crucial to address this problem and establish a healthier childcare routine.
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Do believe that entrepreneurs are 'born' and not 'made'? Justify your answer.
Answer:
Entrepreneurs are born and not made.
Explanation:
In order to be an entrepreneur you must have good business ethic and life skills, no one can make you have the mindset and ethic of an entrepreneur only influence on the skills you are already born with.
in the opening sentence, the author assumes which of the following about his audience?
They hold individual freedom in high regard , the author assumes about his audience.
Option C is correct.
What are the 4 standards of individualism ?Individualism is based on four fundamental principles: economic liberty, personal responsibility, and the rule of law are all important. Economic individualism is centered on the idea of less government involvement or intervention in the economy.
All four principles embody the overall concept of individualism and help us see the benefits it has for society. Individualism advocates place a high value on economic liberty, private ownership, competition, self-interest, and independence.
Incomplete question:
In the opening sentence, the author assumes which of the following about his audience?
TEXT:
A country founded on the principle of individual freedom—“life, liberty and the pursuit of happiness”1—has both a gift and a problem. “No man is an island,” the English poet John Donne wrote in the seventeenth century, but in the late eighteenth century, at least in America, you very nearly could be, at least physically. The continent was so immense, the forests so thick, and the land so fertile, that a man could literally live alone. Strictly speaking, if survival was all that mattered, he did not even need a market to sell to. He had everything he needed in the woods, streams, and fields.
This was how Americans saw themselves, or claimed to see themselves. In his first Farewell Address—the one in 1783, when he resigned his commission as commander in chief of the continental army—General George Washington envisioned his disbanded troops heading out to the “extensive and fertile Regions of the West,” which would “yield a most happy Asylum to those, who, fond of domestic enjoyment are seeking for personal independence.”
This independence was not only geographical, it was psychological, spiritual, political—and legal. With the colonial grants wiped away by revolution, new American landowners could buy and hold land in “fee simple,” just the way the highest-ranking feudal lords had done at the top of Old World society. Every man was his own lord and vassal. He could make whatever money he could, and keep most of it as his own. There would be taxes in the New World, but they were not “direct.” Indeed, for the first century of its existence, Washington derived the bulk of its revenue from global trade—from import tariffs and duties—and from sales of federal land.
The spirit of economic individualism was always with us, and by the middle of the nineteenth century it had become a kind of secular religion in the world of business, even when the aim of big business was to snuff out the very entrepreneurialism that nurtured commerce to begin with. In 1886, at the height of the first Gilded Age, the U.S. Supreme Court declared that the Southern Pacific Railroad—and, by extension, all profit-making corporations—were entitled to be viewed as individual persons in the eyes of the law. We were the first country in the world to view them that way, but it made sense: Individualism was Us, even if Us was a corporate leviathan. Americans have never fully accepted the idea that tax tables should be designed, and revenues disbursed, in a way that makes government the redistributor of wealth and guarantor of income. “Fairness” is one thing, redistribution another.
There was another view—a counterpoint—and much of our history is about the struggle of communal thinking to gain sway in the economic life of America. The question has never been whether Americans would pitch in to help each other—but rather the extent to which government could require them to do so. Observers from Tocqueville onward have commented on our willingness, even eagerness, to join voluntary associations, from civic groups to teaching circles. Americans give more to charity per capita than citizens of any other country. Bill Gates and Warren Buffett2 established the wealthiest charitable foundation in history. We may “bowl alone” more often these days, as author Robert Putnam gloomily puts it in his metaphor for anomie,3 but we also worry about the fact that we do so. Walt Whitman,4 our bard of brotherhood, saw no conflict between his own credo of the individual and his love of all mankind. “[W]hoever walks a furlong without sympathy,” he wrote in “Song of Myself,” “walks to his own funeral drest in a shroud.”
But what is the government’s role in reconciling two age-old American concepts: “There’s no such thing as a free lunch” and “united we stand”?
A)They are familiar with the phrase “life, liberty and the pursuit of happiness."
B)They view the phrase “life, liberty and the pursuit of happiness” with skepticism.
C)They hold individual freedom in high regard.
D)They view individual freedom as both a gift and a problem.
E)They are probably unfamiliar with the principle of individual freedom.
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PLZ HELP EXTRA POINTS!!!
The Constitution set up a federal system of government by ____.
A. distributing power among three branches of government
B. dividing power between the National Government and the States
C. providing a formal amendment process
D. giving the President the power to veto an act of Congress
Answer: its A
Explanation:Because it based on the three banches.
How do performance standards best promote ethical behavior?
Answer:
reviews and if manage hold themselves to a high standard of ethical behavior how do managers deal with overstaffing problems teaching employees better time management/.
Explanation:
I. Palatin (NASDAQ: PTN) has never paid a dividend and has no plans to do so. It announced a 1 for-25 stock split to be taken into effect in August. PTN was trading at $0.23 share in August just prior to the stock split, and September European call options on 100 PTN shares with strike $0.21 were trading at $0.01. The risk-free interest rate is 5% p.a. continuously compounded for all maturities.
(a) Are there any arbitrage opportunities in which you earn an immediate profit? If there is, describe activities and cashflows for t=0 ONLY.
(b) Would you answer to (a) change for an otherwise identical October American call option trading at the same price? Why or why not?
(c) Describe adjustments to the call option after the stock split, support with calculations.
(A) The situation does present an arbitrage opportunity. An investor can take part in the following activities to make a quick profit: 1. Spend $575 to purchase 2,500 PTN shares ($0.23 per share x 2,500 shares).
2. On PTN, sell 100 European call options for $0.01 each to get $1 in premium. The following are the cashflows at time t=0: Initial Cash Flow: -$575 (PTN share buy) Initial Cash Flow: $1 plus the premium from the sale of call options. An immediate profit of $574 results from the net cashflow at time zero, which is -$574. (b) If an otherwise identical October American call option were to trade at the same price, the answer to (a) would be different. American options can be exercised at any moment before expiration, unlike European options, which cannot. can only be used when something expires. The October American call option would be more valuable and less likely to present an arbitrage opportunity if it allowed for early exercise. (c) The number of PTN shares will increase by a factor of 25 following the 1 for 25 stock split, and the strike price of the call option will reduce by the same quantity. The following formula can be used to compute the call option adjustments: 100 shares multiplied by 25 to get the new number of shares backing the call option: 2,500 shares. $0.21/25 = $0.0084 is the new strike price. The right to purchase 2,500 shares of PTN at the current strike price of $0.0084 would be represented by the call option contract. The modifications make sure that the stock split is taken into account and In terms of the underlying shares and strike price, the option still has the same value as the pre-split option.
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Selected transactions for Sophie’s Dog Care are as follows during the month of March. March 1 Paid monthly rent of $1,460. 3 Performed services for $170 on account. 5 Performed services for cash of $90. 8 Purchased equipment for $730. The company paid cash of $100 and the balance was on account. 12 Received cash from customers billed on March 3. 14 Paid wages to employees of $640. 22 Paid utilities of $88. 24 Borrowed $1,830 from Grafton State Bank by signing a note. 27 Paid $270 to repair service for plumbing repairs. 28 Paid balance amount owed from equipment purchase on March 8. 30 Paid $2,200 for six months of insurance. Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer:
March 1
Dr Rent expense $1460
Cr Cash $1460
March 3
Dr Accounts receivable $170
Cr Service revenue $170
March 5
Dr Cash $90
Cr Service revenue $90
March 8
Dr Equipment $730
Dr Cash $100
Cr Accounts payable (730-100) $630
March 12
Dr Cash $170
Accounts receivable $170
March 14
Dr Salaries and wages expense $640
Cr Cash $640
March 22
Dr Utilities expense $88
Cr Cash $88
March 24
Dr Cash $1830
Cr Notes payable $1830
March 27
Dr Maintenance and repairs expense $270
Cr Cash $270
March 28 Accounts payable $630
Cash $630
March 30
Dr Prepaid insurance $2200
Cr Cash $2200
Explanation:
Preparation of Journal entries
March 1
Dr Rent expense $1460
Cr Cash $1460
(To record rent expense paid)
March 3
Dr Accounts receivable $170
Cr Service revenue $170
(To record services performed on account)
March 5
Dr Cash $90
Cr Service revenue $90
(To record services performed for cash)
March 8
Dr Equipment $730
Dr Cash $100
Cr Accounts payable (730-100) $630
(To record equipment purchased)
March 12
Dr Cash $170
Accounts receivable $170
(To record cash received from customers)
March 14
Dr Salaries and wages expense $640
Cr Cash $640
(To record wages paid to employees)
March 22
Dr Utilities expense $88
Cr Cash $88
(To record utilities expense paid)
March 24
Dr Cash $1830
Cr Notes payable $1830
(To record cash borrowed by signing a note)
March 27
Dr Maintenance and repairs expense $270
Cr Cash $270
(To record cash paid for repairs)
March 28 Accounts payable $630
Cash $630
(730-100)
(To record cash paid to accounts payable)
March 30
Dr Prepaid insurance $2200
Cr Cash $2200
(To record prepaid insurance paid)
The demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year. The demand is easily satisfied on a daily basis. This demand for bread can be categorized as _____.
Considering the situation described above, this demand for bread can be categorized as a "static demand."
This is because a static demand is a type of demand that is not flexible at any given point.
Also, demand is said to be static when the change in quantity demand of a commodity is relative to a change in the unit price of a commodity.
Thus, in this case, when the demand for bread in Ahoma City ranges from 100 to 120 tons per day, every day of the year, this is an example of a Static demand because it is stable throughout the year.
Hence, in this case, it is concluded that the correct answer is "Static Demand."
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1. Give the three (3)
business resources
Answer:
Financial Resources
Human Resources
Educational Resources
Explanation:
Consultant negotiates a contract with Client that provides that Client will pay Consultant $7,000 per month for services and pay Consultant’s child’s rent of $3,000 per month. Consultant has to include the full $10,000 per month in gross income under the assignment of income doctrine.
Group of answer choices
True
False
The statement "Consultant negotiates a contract with Client that provides that Client will pay Consultant $7,000 per month for services and pay Consultant’s child’s rent of $3,000 per month" is true or false.
The statement is true.What is the Assignment of Income Doctrine?The Assignment of Income Doctrine is a judicial principle that assigns the tax liability to the individual who earns income from his or her labor. The assignment of income doctrine is a principle used by the Internal Revenue Service (IRS) to regulate tax evasion by people who attempt to allocate their revenue to others to avoid taxes.
A taxpayer who chooses to pay somebody else in their name for the services or work he provided is liable for the tax due on the payments. As per the doctrine of assignment of income, a taxpayer may not assign the right to pay tax on income to someone else.
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A business executive feels the need to win in everything he does, from his business deals, to his golf, and even with his romantic partners. The executive's behavior illustrates a(n):
A business executive feels the need to win in everything he does, from his business deals, to his golf, and even with his romantic partners. The executive's behavior illustrates a(n):need for achievement.
What is need for achievement?Need for achievement can be defined as the way in which a person is determine to achieve their goals or when a person is always eager to achieve their set goals and objectives.
Hence, the personalities display by the business executives is called need for achievement as the executives feels the need to win in everything he does,.
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Peyton Corporation and Rogers Corporation operate in the same industry. Peyton uses the straight-line method to account for depreciation, whereas Rogers uses an accelerated method. Explain what complications might arise in trying to compare the results of these two companies.
Answer:
If both firms have a lot of depreciable fixed assets, using the MACRS depreciation schedule or some other type of accelerated depreciation method will increase their expenses during the first years resulting in lower operating income. This situation reverses in the later years when the depreciation expense becomes much lower, resulting in higher operating income. On the other hand, using straight line depreciation makes your depreciation expense more stable and sometimes even more realistic.
Companies use MACRS depreciation to lower their tax liabilities by lowering their income. Remember that $1 saved today is worth more than $1 saved tomorrow.
In this case, Rogers Corporation might yield a lower income during the first years that it depreciates its assets, but then it will show much higher income (during the last years). Peyton Corporation should show more stable income.
Which problem is more likely to affect a partnership than a corporation?
O A. It is overly expensive and complicated to get started.
O B. Shareholders may remove the owners from the company.
O C. There are too many legal regulations controlling the business.
O D. The business may end if one owner chooses to leave.
Answer:
D.The buisness may end...
Explanation:
Have an amazing day :)
The answer is Option D.
What is the main difference between a corporation and a partnership?In a partnership, co-owners report their share of the business's income and losses on their personal tax returns. A corporation, which is formed by filing articles of incorporation, is a legally separate business entity owned by shareholders. An elected board and board-appointed officers manage the corporation.
What is a disadvantage of a corporation compared to a partnership?Corporations cost more to set up and run than a sole proprietorship or partnership. For example, there are the initial formation fees, filing fees, and annual state fees. These costs are partially offset by lower insurance costs. Formal organization and corporate formalities.
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17. Suppose that you are evaluating an asset that costs $400,000 and that is depreciated for tax purposes using MACRS rates for a 5 . year asset. Assume a marginal tax rate of 30%. (a) What is the amount of the depreciation expense in the second year? (b) What is the amount of the depreciation tax-shield in the second year? (c) If you plan to dispose of the asset at the end of the third year, what is the asset's tax basis at the time of sale? (d) If you can sell the asset for $50,000 at the end of the fifth year, do you have a gain or a loss? What are the tax consequences of this sale? What are the cash flow consequences? (e) If you can sell the asset for $100,000 at the end of the fifth year, do you have a gain or a loss? What are the tax consequences of this sale? What are the cash flow consequences?
(a) The amount of depreciation expense in the second year using MACRS rates for a 5-year asset is $96,000.
(b) The amount of the depreciation tax-shield in the second year, considering a marginal tax rate of 30%, is $28,800.
(c) The asset's tax basis at the time of sale, assuming disposal at the end of the third year, would be $96,000.
(a) MACRS (Modified Accelerated Cost Recovery System) is a depreciation method used for tax purposes. For a 5-year asset, the depreciation is allocated over a specific schedule. In the second year, the depreciation expense is calculated as 32% (MACRS rate for the second year) of the asset's cost, which is $400,000. Therefore, the depreciation expense in the second year is $400,000 * 0.32 = $128,000.
(b) The depreciation tax-shield refers to the tax savings resulting from deducting depreciation expenses from taxable income. To calculate the depreciation tax-shield, we multiply the depreciation expense by the marginal tax rate. In this case, the tax-shield in the second year is $128,000 * 0.30 = $38,400.
(c) If the asset is disposed of at the end of the third year, the tax basis is equal to the remaining undepreciated cost. The depreciation expense for the first three years would be $400,000 - $128,000 - $96,000 = $176,000. Therefore, the asset's tax basis at the time of sale would be $400,000 - $176,000 = $224,000.
(d) If the asset is sold for $50,000 at the end of the fifth year, there would be a loss of $400,000 - $50,000 = $350,000. Since the asset was depreciated using MACRS, the tax basis for depreciation purposes would be reduced to zero. As a result, there would be no tax consequences or tax liability from the sale. However, there would be a cash flow consequence of a loss of $350,000.
(e) If the asset is sold for $100,000 at the end of the fifth year, there would be a gain of $100,000 - $0 = $100,000. Since the asset's tax basis has already been reduced to zero through depreciation, the entire gain would be taxable. With a marginal tax rate of 30%, the tax consequences of the sale would be a tax liability of $100,000 * 0.30 = $30,000. The cash flow consequence would be the gain of $100,000 reduced by the tax liability, resulting in a cash flow of $100,000 - $30,000 = $70,000.
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Marietta opts into a Target app. When she enters a Target store, small Bluetooth devices scattered throughout the store send signals to her phone with personalized deals and information. This is an example of ______ technology.
a. tag.
b. RFID.
c. alien.
d. beacon.
Assuming small Bluetooth devices scattered throughout the store send signals to her phone. This is an example of d. beacon technology.
What is beacon technology?Beacon technology can be defined as a tiny or small wireless transmitter technology that help to send signals to devices.
One of the example of beacon is blutooth devices. Despite small in size they help to send signal to phone or user device and they as well makes use of low energy.
Inconclusion this is an example of d. beacon technology.
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knowledge check 01 on january 1, year 1, canseco plumbing fixtures purchased equipment for $52,000. residual value at the end of an estimated four-year service life is expected to be $4,000. the company uses the straight-line method. for how much would each item below be reported at the end of year 3?
Each of the items below would be required to report $ 16,000 at the end of year three because the predicted residual value after a four-year service life is $4,000 per item.
Salvage minus cost is equal to 48,000 minus 52,000.
4 years is the estimated usable life. Dep. per year in a straight line Dep. per year = cost - estimated useful life / salvage, which equals 48,000 / 12,000 annually.
Three years later,
1: 12,000 in depreciation costs
2: Accumulated depreciation is 12,000 times three, or 36,000.
3: BOOK VALUE is calculated as the purchase price minus the outstanding debt, which is 52,000 – 36,000 or $16,000.
The estimated value of a fixed asset at the end of its lease term or usable life is the residual value, commonly referred to as salvage value. In lease agreements, the residual value is one of the lessor's main methodologies for calculating the lessee's periodic lease payments. A common guideline is that an asset's residual value decreases as its usable life or lease period lengthens.
Industry-specific residual value calculations vary, but their fundamental meaning is always the same. In capital budgeting projects, residual values represent the price at which an asset can be sold after the company has stopped using it or when it is no longer possible to estimate the asset's future cash flows.
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The PDQ Company makes collections on credit sales according to the following schedule:
25% in month of sale
70% in month following sale
4% in second month following sale
1% uncollectible
The budget for cash collections in June will be $111,000.
The cash budget is prepared to anticipate the inflows and outflows of cash for a company in a given period. It also aids in the preparation of a cash flow statement, which is an important part of financial statements.
The PDQ Company's cash collection budget for June is as follows:
25% of April sales: $100,000 x 0.25 = $25,000
70% of May sales: $120,000 x 0.70 = $84,000
4% of June sales: $110,000 x 0.04 = $4,400
Total expected cash collections in June = $25,000 + $84,000 + $4,400 = $113,400
However, 1% of the total sales is expected to be uncollectible, which means that $1,300 ($110,000 x 0.01) of June sales will not be collected. As a result, the budgeted cash collections for June will be:
$113,400 - $1,300 = $111,000
Therefore, option D is correct.
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