The next three questions are based on the following information: Strata Company is a retailer whose shares are publicly traded. During year X1, Strata reported the following quarterly financial information in its SEC filings: Quarter Q1 Q2 Q3 Q4 Pre-Tax Income 100,000 130,000 140,000 180,000 Taxes (20%) (20,000) (26,000) (28,000) (36,000) Net Income 80,000 104,000 112,000 144,000 As a retailer, Strata counts its inventory on 6/30 and 12/31 of each year. While observing Strata's inventory count on 12/31/X1 prior to closing, the auditor discovered that Strata's ending inventory count was overstated by $30,000 as it included goods received from Rapid Company that were being held on consignment. The auditor then went back to the inventory scan records that were made when Strata counted its inventory back on 6/30/X1 and discovered that the same $30,000 of goods being held on consignment had been counted when calculating Strata's ending inventory. As a corporation, Strata files quarterly tax returns with the IRS. In response to this information, what accounting entries if any should Strata make on 12/31/X1? Select one: a. Debit Cost of Sales for $30,000 and Credit Inventory for $30,000 b. Debit Cost of Sales for $24,000, Debit Tax Expense for $6,000 and Credit Inventory for $30,000 c. Debit Retained Earnings for $30,000 and Credit Inventory for $30,000 d. Debit Cost of Sales for $30,000, Debit Accounts Receivable $6,000, Credit Inventory for $30,000, and Credit Tax Expense for $6,000 e. None of the Above
Assume that P is a public Company that owns 90% of Strata and has previously filed consolidated financial statements for quarters Q1, Q2, and Q3 of year X1. Based on this information, what accounting entries should P make on 12/31/X1 when it is notified of the inventory counting problems? Select one: a. Debit Investment Income for $18,000 and Credit Investment in Strata for $18,000 b. Debit Investment Income for $21,600 and Credit Investment in Strata for $21,600 c. Debit Investment Income for $24,000 and Credit Investment in Strata for $24,000 d. Debit Retained Earnings for $24,000 and Credit Investment in Strata for $24,000 e. None of the Above Question 9
In addition to making correcting accounting entries, what additional responsibilities does P have under ASC 250 regarding its Investment in Strata? Select one: a. P is required to restate consolidated results for quarter Q2. b. P is required to restate consolidated results for quarter Q3. c. P is required to disclose the effects of the Strata error on previously reported results. d. All of the Above
In: Accounting
Following the outbreak of the Novel Coronavirus (COVID
19), CPC a pharmaceutical company is considering introducing a new
vaccine unto the market to help fight the virus. This will require
the injection of huge capital to the tune of GH¢40,000,000 for the
purchase of the equipment for production. It will cost CPC an
additional GH¢ 5,500,000 to set up the production facility and
install that equipment for production. Mr. Smart, the CEO of CPC
believes that the vaccine could be manufactured in a building owned
by the firm and located in East Legon. This vacant building and the
land can be sold for GH¢ 1,500,000 after taxes. CPC will finance
the production of the vaccine (including initial working capital
investment) by issuing 2000,000 new common stocks at GH¢ 20 per
share from its existing shareholders. A total of GH¢ 40,000,000 is
expected to be raised from the rights issue. It expects to finance
the remaining investment including initial working capital
investment from the issue of a 5-year bond with a before-tax yield
to maturity (YTM) of 12%. Mr. Qwesi, the Finance Director has
estimated the beta of the project to be 2.5 and the average return
for stocks traded on the Ghana Stock Exchange to be 10% while the
rate on Government of Ghana traded Treasury bills is 5%. The
successful production of the vaccine will generate additional cash
flows for CPC. The Production and Marketing department has
presented the information in the table below:
2020
Variable cost per unit of the product GH¢150
Selling price per unit GH¢350
Quantity 400,000units per annum
Again the following information should be taken note of:
• Feasibility studies cost the company GH¢2,000,000
• Test marketing expenses amounts to GH¢1,000,000
• The research into the discovery of the vaccine costs
GH¢5,000,000
• Variable cost will increase by 5% per annum
• Selling price will increase by 10% per annum
• Marketing expense will be 5% of sales revenue per year
• Overhead cost will be fixed at GH¢6000,000 per year
• The project will last for five (5) years (2021-2025)
• Charge depreciation using the straight-line method
• Salvage value for equipment is GH¢2,000,000
• CPC falls within the 25% tax bracket
• An initial working capital investment of GH¢10,000,000 will be
made. Subsequently, net working capital at the end of each year
will be equal to 10 percent of sales for that year. In the final
year of the project, net working capital will decline to zero as
the project is wound down. In other words, the investment in
working capital is to be completely recovered by the end of the
project’s life
• The introduction of this new vaccine is expected to lead to
10,000 units per annum drop in sales of vaccines for other types of
corona virus by. The selling price per unit of existing products is
GH¢100 while the variable cost is GH¢70. This has no tax
implications for the new vaccine.
• The project will be financed with debt and equity
Required:
a. Evaluate the project using the NPV and Profitability index and
recommend whether CPC should go ahead with the production of the
vaccine.
In: Finance
I dont know what to do: Is there a significant difference between drug type and mean relative-change* of Cholesterol from screening to follow up?
* Relative Change = (Follow up - Initial) / Initial
| Patient ID | Drug | Stomach Pain | Sex | Age | Height | Systolic BP | Diastolic BP | Exercise | Coffee Consumption | Alcohol Consumption | Weight | Weight3 | Cholesterol | Cholesterol3 | Triglycerides | Triglycerides3 | HDL | HDL3 | LDL | LDL3 |
| 1 | B | Yes | F | 22 | 67.13 | 124 | 78 | 180 | 1 | > 2 | 138 | 145 | 197 | 182 | 152 | 135 | 43 | 34 | 151.6 | 145.8 |
| 2 | B | Yes | M | 22 | 63 | 122 | 70 | 0 | 2 | < 2 | 115 | 122 | 181 | 151 | 59 | 57 | 60 | 48 | 120.1 | 102.1 |
| 3 | B | No | F | 22 | 72 | 124 | 80 | 90 | 0 | < 2 | 190 | 190 | 190 | 169 | 117 | 86 | 41 | 37 | 147.1 | 130.6 |
| 4 | A | Yes | M | 22 | 69 | 120 | 70 | 120 | 5 | > 2 | 115 | 105 | 131 | 133 | 54 | 72 | 58 | 67 | 72.1 | 64.8 |
| 5 | B | Yes | M | 25 | 73 | 138 | 92 | 40 | 2 | > 2 | 160 | 165 | 172 | 166 | 93 | 139 | 49 | 40 | 121.5 | 123.8 |
| 6 | B | Yes | M | 22 | 67.5 | 100 | 72 | 0 | 0 | < 2 | 150 | 165 | 233 | 229 | 176 | 144 | 42 | 38 | 188.2 | 188.7 |
| 7 | A | Yes | M | 23 | 73 | 128 | 78 | 0 | 2 | < 2 | 154 | 150 | 194 | 148 | 79 | 80 | 49 | 26 | 143.7 | 120.7 |
| 8 | A | No | M | 24 | 71.5 | 128 | 74 | 90 | 0 | < 2 | 185 | 187 | 155 | 148 | 89 | 73 | 45 | 50 | 108.6 | 96.8 |
| 9 | A | Yes | F | 23 | 73.5 | 124 | 82 | 60 | 1 | > 2 | 178 | 166 | 234 | 175 | 307 | 88 | 28 | 28 | 201.1 | 145.6 |
| 10 | A | Yes | M | 22 | 72.25 | 130 | 88 | 40 | 0 | 0 | 158 | 163 | 201 | 203 | 88 | 112 | 50 | 40 | 149.6 | 161.2 |
| 11 | A | No | M | 26 | 73 | 130 | 86 | 0 | 1 | < 2 | 188 | 195 | 258 | 276 | 299 | 199 | 30 | 21 | 223.2 | 251.8 |
| 12 | A | No | M | 22 | 64.25 | 120 | 74 | 0 | 0 | > 2 | 150 | 150 | 212 | 228 | 52 | 61 | 69 | 60 | 142.2 | 167 |
| 13 | B | Yes | M | 22 | 64.25 | 120 | 74 | 0 | 4 | 0 | 123 | 131 | 137 | 165 | 158 | 147 | 29 | 39 | 105.5 | 123.6 |
| 14 | B | No | F | 27 | 65 | 100 | 68 | 180 | 2 | > 2 | 138 | 133 | 285 | 229 | 98 | 89 | 69 | 61 | 214.4 | 166.6 |
| 15 | A | No | M | 22 | 59 | 124 | 84 | 180 | 0 | > 2 | 143 | 140 | 218 | 172 | 101 | 96 | 46 | 21 | 170.4 | 149.5 |
| 16 | B | Yes | F | 24 | 67.5 | 122 | 68 | 210 | 1 | < 2 | 139 | 151 | 167 | 152 | 71 | 91 | 51 | 37 | 114.9 | 113.5 |
| 17 | A | Yes | F | 22 | 71.5 | 118 | 70 | 60 | 0 | < 2 | 156 | 155 | 170 | 158 | 81 | 91 | 42 | 40 | 126.7 | 116.5 |
| 18 | A | Yes | M | 22 | 69 | 125 | 76 | 180 | 0 | < 2 | 150 | 154 | 157 | 140 | 86 | 88 | 37 | 34 | 118.6 | 104.6 |
| 19 | A | Yes | M | 24 | 68 | 122 | 74 | 100 | 5 | > 2 | 135 | 128 | 215 | 176 | 71 | 53 | 62 | 46 | 151.9 | 129.2 |
| 20 | A | No | M | 25 | 74 | 134 | 88 | 180 | 0 | < 2 | 219 | 220 | 194 | 207 | 71 | 130 | 40 | 33 | 152.9 | 171.9 |
| 21 | A | No | F | 28 | 71 | 110 | 80 | 60 | 2 | > 2 | 173 | 173 | 207 | 231 | 107 | 145 | 53 | 47 | 152.3 | 181.7 |
| 22 | A | Yes | M | 22 | 68.5 | 116 | 84 | 280 | 0 | 0 | 151 | 165 | 198 | 199 | 80 | 126 | 44 | 46 | 152.7 | 151 |
| 23 | A | Yes | M | 23 | 75.5 | 124 | 73 | 60 | 1 | 0 | 182 | 183 | 189 | 262 | 47 | 230 | 50 | 31 | 138.2 | 227.3 |
| 24 | A | Yes | M | 24 | 70 | 124 | 72 | 360 | 0 | < 2 | 161 | 163 | 216 | 203 | 95 | 121 | 35 | 28 | 179.5 | 173.1 |
| 25 | B | Yes | F | 22 | 72 | 126 | 88 | 120 | 0 | 0 | 176 | 173 | 212 | 173 | 140 | 88 | 43 | 35 | 166.8 | 136.6 |
| 26 | B | Yes | F | 26 | 72.5 | 138 | 82 | 0 | 0 | < 2 | 177 | 175 | 175 | 169 | 77 | 78 | 46 | 52 | 127.8 | 115.8 |
| 27 | B | Yes | F | 23 | 72 | 120 | 68 | 60 | 1 | < 2 | 174 | 197 | 158 | 172 | 57 | 126 | 34 | 30 | 123.1 | 140 |
| 28 | B | No | F | 20 | 74 | 118 | 76 | 0 | 2 | 0 | 234 | 217 | 115 | 146 | 95 | 110 | 26 | 33 | 87.5 | 111.2 |
| 29 | B | No | F | 28 | 66 | 138 | 82 | 120 | 0 | 0 | 150 | 160 | 228 | 224 | 480 | 373 | 29 | 28 | 191.3 | 190 |
| 30 | A | Yes | F | 23 | 74 | 124 | 76 | 60 | 0 | < 2 | 149 | 150 | 164 | 164 | 94 | 92 | 43 | 44 | 119.5 | 118.5 |
| 31 | B | Yes | M | 22 | 70 | 118 | 72 | 0 | 0 | < 2 | 156 | 160 | 149 | 149 | 155 | 65 | 37 | 29 | 109.5 | 119 |
| 32 | A | Yes | F | 23 | 71.5 | 124 | 70 | 180 | 3 | < 2 | 168 | 170 | 211 | 183 | 63 | 60 | 52 | 44 | 158 | 138 |
| 33 | B | Yes | F | 22 | 73 | 122 | 76 | 0 | 0 | < 2 | 182 | 170 | 191 | 185 | 99 | 101 | 39 | 39 | 150.4 | 144.4 |
| 34 | B | No | F | 40 | 75 | 128 | 80 | 0 | 5 | > 2 | 217 | 230 | 277 | 243 | 240 | 218 | 71 | 28 | 202.2 | 211.5 |
| 35 | B | No | M | 22 | 65 | 128 | 82 | 120 | 1 | < 2 | 190 | 201 | 178 | 191 | 52 | 77 | 41 | 56 | 136.2 | 133.8 |
| 36 | A | Yes | F | 25 | 69 | 124 | 78 | 150 | 5 | < 2 | 159 | 154 | 157 | 112 | 93 | 71 | 41 | 38 | 114.5 | 72.9 |
| 37 | A | No | M | 22 | 73 | 126 | 73 | 180 | 0 | 0 | 191 | 199 | 151 | 155 | 44 | 94 | 42 | 44 | 108.3 | 109.5 |
| 38 | A | No | M | 24 | 59.5 | 122 | 72 | 100 | 0 | 0 | 140 | 140 | 209 | 165 | 71 | 71 | 41 | 42 | 166.9 | 121.9 |
| 39 | B | No | F | 23 | 71 | 116 | 72 | 120 | 0 | 0 | 183 | 186 | 209 | 147 | 95 | 124 | 37 | 29 | 170.5 | 116 |
| 40 | B | Yes | F | 26 | 71 | 132 | 78 | 90 | 0 | 0 | 162 | 167 | 197 | 216 | 47 | 64 | 43 | 43 | 153.2 | 172 |
| 41 | B | No | M | 29 | 69.5 | 130 | 82 | 0 | 3 | < 2 | 181 | 169 | 226 | 208 | 126 | 86 | 38 | 36 | 186 | 170.6 |
| 42 | B | No | F | 30 | 70 | 112 | 72 | 0 | 5 | < 2 | 196 | 199 | 127 | 139 | 116 | 69 | 32 | 31 | 93.1 | 106.9 |
| 43 | A | No | M | 25 | 65.5 | 120 | 72 | 180 | 2 | > 2 | 141 | 143 | 180 | 162 | 85 | 93 | 41 | 46 | 137.6 | 114.5 |
| 44 | B | No | F | 25 | 74 | 117 | 77 | 0 | 2 | 0 | 230 | 217 | 117 | 146 | 95 | 110 | 25 | 33 | 87.5 | 111.2 |
| 45 | A | Yes | M | 24 | 70 | 122 | 76 | 100 | 5 | > 2 | 135 | 128 | 215 | 177 | 71 | 53 | 62 | 46 | 151.9 | 129.2 |
In: Math
Scroll the bottom arrows to see the whole table. if I make it any smaller you will not be able to see the numbers clearly: Is there a relationship between the relative-change* in weight and the relative-change* in Cholesterol level from screening to follow up for patients taking Drug A?
* Relative Change = (Follow up - Initial) / Initial
| Patient ID | Drug | Stomach Pain | Sex | Age | Height | Systolic BP | Diastolic BP | Exercise | Coffee Consumption | Alcohol Consumption | Weight | Weight3 | Cholesterol | Cholesterol3 | Triglycerides | Triglycerides3 | HDL | HDL3 | LDL | LDL3 |
| 1 | B | Yes | F | 22 | 67.13 | 124 | 78 | 180 | 1 | > 2 | 138 | 145 | 197 | 182 | 152 | 135 | 43 | 34 | 151.6 | 145.8 |
| 2 | B | Yes | M | 22 | 63 | 122 | 70 | 0 | 2 | < 2 | 115 | 122 | 181 | 151 | 59 | 57 | 60 | 48 | 120.1 | 102.1 |
| 3 | B | No | F | 22 | 72 | 124 | 80 | 90 | 0 | < 2 | 190 | 190 | 190 | 169 | 117 | 86 | 41 | 37 | 147.1 | 130.6 |
| 4 | A | Yes | M | 22 | 69 | 120 | 70 | 120 | 5 | > 2 | 115 | 105 | 131 | 133 | 54 | 72 | 58 | 67 | 72.1 | 64.8 |
| 5 | B | Yes | M | 25 | 73 | 138 | 92 | 40 | 2 | > 2 | 160 | 165 | 172 | 166 | 93 | 139 | 49 | 40 | 121.5 | 123.8 |
| 6 | B | Yes | M | 22 | 67.5 | 100 | 72 | 0 | 0 | < 2 | 150 | 165 | 233 | 229 | 176 | 144 | 42 | 38 | 188.2 | 188.7 |
| 7 | A | Yes | M | 23 | 73 | 128 | 78 | 0 | 2 | < 2 | 154 | 150 | 194 | 148 | 79 | 80 | 49 | 26 | 143.7 | 120.7 |
| 8 | A | No | M | 24 | 71.5 | 128 | 74 | 90 | 0 | < 2 | 185 | 187 | 155 | 148 | 89 | 73 | 45 | 50 | 108.6 | 96.8 |
| 9 | A | Yes | F | 23 | 73.5 | 124 | 82 | 60 | 1 | > 2 | 178 | 166 | 234 | 175 | 307 | 88 | 28 | 28 | 201.1 | 145.6 |
| 10 | A | Yes | M | 22 | 72.25 | 130 | 88 | 40 | 0 | 0 | 158 | 163 | 201 | 203 | 88 | 112 | 50 | 40 | 149.6 | 161.2 |
| 11 | A | No | M | 26 | 73 | 130 | 86 | 0 | 1 | < 2 | 188 | 195 | 258 | 276 | 299 | 199 | 30 | 21 | 223.2 | 251.8 |
| 12 | A | No | M | 22 | 64.25 | 120 | 74 | 0 | 0 | > 2 | 150 | 150 | 212 | 228 | 52 | 61 | 69 | 60 | 142.2 | 167 |
| 13 | B | Yes | M | 22 | 64.25 | 120 | 74 | 0 | 4 | 0 | 123 | 131 | 137 | 165 | 158 | 147 | 29 | 39 | 105.5 | 123.6 |
| 14 | B | No | F | 27 | 65 | 100 | 68 | 180 | 2 | > 2 | 138 | 133 | 285 | 229 | 98 | 89 | 69 | 61 | 214.4 | 166.6 |
| 15 | A | No | M | 22 | 59 | 124 | 84 | 180 | 0 | > 2 | 143 | 140 | 218 | 172 | 101 | 96 | 46 | 21 | 170.4 | 149.5 |
| 16 | B | Yes | F | 24 | 67.5 | 122 | 68 | 210 | 1 | < 2 | 139 | 151 | 167 | 152 | 71 | 91 | 51 | 37 | 114.9 | 113.5 |
| 17 | A | Yes | F | 22 | 71.5 | 118 | 70 | 60 | 0 | < 2 | 156 | 155 | 170 | 158 | 81 | 91 | 42 | 40 | 126.7 | 116.5 |
| 18 | A | Yes | M | 22 | 69 | 125 | 76 | 180 | 0 | < 2 | 150 | 154 | 157 | 140 | 86 | 88 | 37 | 34 | 118.6 | 104.6 |
| 19 | A | Yes | M | 24 | 68 | 122 | 74 | 100 | 5 | > 2 | 135 | 128 | 215 | 176 | 71 | 53 | 62 | 46 | 151.9 | 129.2 |
| 20 | A | No | M | 25 | 74 | 134 | 88 | 180 | 0 | < 2 | 219 | 220 | 194 | 207 | 71 | 130 | 40 | 33 | 152.9 | 171.9 |
| 21 | A | No | F | 28 | 71 | 110 | 80 | 60 | 2 | > 2 | 173 | 173 | 207 | 231 | 107 | 145 | 53 | 47 | 152.3 | 181.7 |
| 22 | A | Yes | M | 22 | 68.5 | 116 | 84 | 280 | 0 | 0 | 151 | 165 | 198 | 199 | 80 | 126 | 44 | 46 | 152.7 | 151 |
| 23 | A | Yes | M | 23 | 75.5 | 124 | 73 | 60 | 1 | 0 | 182 | 183 | 189 | 262 | 47 | 230 | 50 | 31 | 138.2 | 227.3 |
| 24 | A | Yes | M | 24 | 70 | 124 | 72 | 360 | 0 | < 2 | 161 | 163 | 216 | 203 | 95 | 121 | 35 | 28 | 179.5 | 173.1 |
| 25 | B | Yes | F | 22 | 72 | 126 | 88 | 120 | 0 | 0 | 176 | 173 | 212 | 173 | 140 | 88 | 43 | 35 | 166.8 | 136.6 |
| 26 | B | Yes | F | 26 | 72.5 | 138 | 82 | 0 | 0 | < 2 | 177 | 175 | 175 | 169 | 77 | 78 | 46 | 52 | 127.8 | 115.8 |
| 27 | B | Yes | F | 23 | 72 | 120 | 68 | 60 | 1 | < 2 | 174 | 197 | 158 | 172 | 57 | 126 | 34 | 30 | 123.1 | 140 |
| 28 | B | No | F | 20 | 74 | 118 | 76 | 0 | 2 | 0 | 234 | 217 | 115 | 146 | 95 | 110 | 26 | 33 | 87.5 | 111.2 |
| 29 | B | No | F | 28 | 66 | 138 | 82 | 120 | 0 | 0 | 150 | 160 | 228 | 224 | 480 | 373 | 29 | 28 | 191.3 | 190 |
| 30 | A | Yes | F | 23 | 74 | 124 | 76 | 60 | 0 | < 2 | 149 | 150 | 164 | 164 | 94 | 92 | 43 | 44 | 119.5 | 118.5 |
| 31 | B | Yes | M | 22 | 70 | 118 | 72 | 0 | 0 | < 2 | 156 | 160 | 149 | 149 | 155 | 65 | 37 | 29 | 109.5 | 119 |
| 32 | A | Yes | F | 23 | 71.5 | 124 | 70 | 180 | 3 | < 2 | 168 | 170 | 211 | 183 | 63 | 60 | 52 | 44 | 158 | 138 |
| 33 | B | Yes | F | 22 | 73 | 122 | 76 | 0 | 0 | < 2 | 182 | 170 | 191 | 185 | 99 | 101 | 39 | 39 | 150.4 | 144.4 |
| 34 | B | No | F | 40 | 75 | 128 | 80 | 0 | 5 | > 2 | 217 | 230 | 277 | 243 | 240 | 218 | 71 | 28 | 202.2 | 211.5 |
| 35 | B | No | M | 22 | 65 | 128 | 82 | 120 | 1 | < 2 | 190 | 201 | 178 | 191 | 52 | 77 | 41 | 56 | 136.2 | 133.8 |
| 36 | A | Yes | F | 25 | 69 | 124 | 78 | 150 | 5 | < 2 | 159 | 154 | 157 | 112 | 93 | 71 | 41 | 38 | 114.5 | 72.9 |
| 37 | A | No | M | 22 | 73 | 126 | 73 | 180 | 0 | 0 | 191 | 199 | 151 | 155 | 44 | 94 | 42 | 44 | 108.3 | 109.5 |
| 38 | A | No | M | 24 | 59.5 | 122 | 72 | 100 | 0 | 0 | 140 | 140 | 209 | 165 | 71 | 71 | 41 | 42 | 166.9 | 121.9 |
| 39 | B | No | F | 23 | 71 | 116 | 72 | 120 | 0 | 0 | 183 | 186 | 209 | 147 | 95 | 124 | 37 | 29 | 170.5 | 116 |
| 40 | B | Yes | F | 26 | 71 | 132 | 78 | 90 | 0 | 0 | 162 | 167 | 197 | 216 | 47 | 64 | 43 | 43 | 153.2 | 172 |
| 41 | B | No | M | 29 | 69.5 | 130 | 82 | 0 | 3 | < 2 | 181 | 169 | 226 | 208 | 126 | 86 | 38 | 36 | 186 | 170.6 |
| 42 | B | No | F | 30 | 70 | 112 | 72 | 0 | 5 | < 2 | 196 | 199 | 127 | 139 | 116 | 69 | 32 | 31 | 93.1 | 106.9 |
| 43 | A | No | M | 25 | 65.5 | 120 | 72 | 180 | 2 | > 2 | 141 | 143 | 180 | 162 | 85 | 93 | 41 | 46 | 137.6 | 114.5 |
| 44 | B | No | F | 25 | 74 | 117 | 77 | 0 | 2 | 0 | 230 | 217 | 117 | 146 | 95 | 110 | 25 | 33 | 87.5 | 111.2 |
| 45 | A | Yes | M | 24 | 70 | 122 | 76 | 100 | 5 | > 2 | 135 | 128 | 215 | 177 | 71 | 53 | 62 | 46 | 151.9 | 129.2 |
In: Math
25)Sosin Inc. manufactures hydrogen engines. Recently 350 new orders placed by customers requesting credit. The variable cost is $16,000 per unit, and the credit price is $18,400 each. Credit is extended for one period, and based on historical experience, payments for 15% of the orders are never collected. The required return is 3% per period. Suppose that customers who don’t default become repeat customers and they never default. Calculate the NPV?
In: Finance
Steve and Bill both produce computers and smart watches. If Steve uses all his resources on computers he can make 3 million computers per year. If he use all their resources on watches, Steve can make 5 million watches a year. If Bill uses all his resources they can make 2 million computers a year and if he use all of his resources on watches he can make 7 million watches per year. This information is summarized in the following table.
Table 2: Amount of each good each individual could produce if he only produced that particular good
Computers Watches
Steve 3 million 5 million
Bill 2 million 7 million
a. Who has an absolute advantage in computers? In watches?
b.Find the opportunity cost of each good for each company. Fill in the table below with the opportunity costs (make sure you use the correct units).
Table 3: Opportunity Costs
Computers Watches
Steve
Bill
c. Who has comparative advantage in computers? In watches?
d. If Steve and Bill were to trade products with each other, who will trade away watches in exchange for computers?
e. The price of watches can be expresses in terms of computers. What is the highest price at which watches can be traded that would make both agents better of? What is the lowest price? Explain.
In: Economics
The supplying division of a company produces a component which is sold to the company's buying division and to external customers. The supplying division has incremental costs of $40 per unit and can sell the component to its external customers for $75. The buying division can purchase a similar component from an external supplier for $80. Which of the following is TRUE regarding Transfer Prices?
1. Assuming the supplying division has no excess capacity, the minimum amount it would charge the buying division is $40.
2. The supplying division would have to consider the amount of fixed costs related to the component before determining the transfer price.
3. The maximum transfer price that the supplying division could charge the buying division is $80 regardless of whether the supplying division has excess capacity or not.
4. Assuming the supplying division has excess capacity, the minimum transfer price it would charge the buying division is $75.
In: Accounting
Aircraft companies had very difficult times during the pandemic period. AHL, and OA have created some advantages for their loyal customers, especially for the Istanbul-Ankara flight. AHLprovides 900 points (flight miles) for each flight to its customers flying from Istanbul to Ankara. However, it gives 1000 (flight miles) extra points to more than 3 flights and 1350 (flight miles) to more than 6 flights within three months. While OA gives 1200 points (flight miles) for each flight, it gives 1500 (flight miles) extra points for every 5 flights within three months. While the ticket price of AHL company in Istanbul-ankara is 800 TL, the ticket price of OA is 600 TL.
For a person who wants to make an Istanbul-ankara flight 60 times in the next twelfe months, please create an integer programming model to maximize flight miles.
In: Physics
Required information
On January 1, Year 1, the general ledger of a company includes the following account balances:
| Accounts | Debit | Credit | |||||
| Cash | $ | 24,400 | |||||
| Accounts Receivable | 5,800 | ||||||
| Supplies | 3,700 | ||||||
| Land | 56,000 | ||||||
| Accounts Payable | $ | 3,800 | |||||
| Common Stock | 71,000 | ||||||
| Retained Earnings | 15,100 | ||||||
| Totals | $ | 89,900 | $ | 89,900 | |||
During Year 1, the following transactions occur:
| January | 2 | Purchase rental space for one year in advance, $7,800 ($650/month). | ||
| January | 9 | Purchase additional supplies on account, $4,100. | ||
| January | 13 | Provide services to customers on account, $26,100. | ||
| January | 17 | Receive cash in advance from customers for services to be provided in the future, $4,300. | ||
| January | 20 | Pay cash for salaries, $12,100. | ||
| January | 22 | Receive cash on accounts receivable, $24,700. | ||
| January | 29 |
Pay cash on accounts payable, $4,600. |
3. Prepare an adjusted trial balance as of
January 31, Year 1.
In: Accounting
1- If a firm has a resilient supply chain capable of meeting short lead times, that firm is said to be
| A. | Efficient | ||
| B. | Responsive | ||
| C. | A blue chip company | ||
| D. | A push or pull firm |
2- Salt, compared to electronic products, will have a lower implied demand uncertainty because salt has
| A. | Unpredictable demand | ||
| B. | Predictable demand | ||
| C. | Lower spectrum | ||
| D. |
Strategic fit |
3- A supply source with inflexible supply capacity leads to
| A. | Decrease in uncertainty | ||||||||||||||||
| B. | Increase in uncertainty | ||||||||||||||||
| C. | None of the above | ||||||||||||||||
| D. |
Perfect supply and demand match. This is better for growing the supply chain surplus. 4- Amazon has different groups of customers. Each has unique sets of needs that Amazon has to satisfy. The strategy defining the needs of these different groups of Amazon's customers is
|
In: Operations Management