'Profit is the maximum value a company can distribute during the year and still expect to be worth as much at the end of the year as it was at the beginning.' Discuss this statement, and comment on its value in measuring profit for decision-making. (In a written text please, not a pic)
In: Economics
An economist estimates a 65% probability that the economy will expand next year. The technology sector has a 70% probability of outperforming the market if the economy expands and a 20% probability of outperforming the market if the economy does not expand. Given the new information that the technology sector will not outperform the market, what is the probability that the economy will not expand?
In: Statistics and Probability
|
|
|||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
|
In: Accounting
in a slow year, Deutsche Burgers will produce 3.800 million hamburgers at a cost of $5.400 million. in a good year, it can produce 5.800 million hamburgers at a total cost of $6.500 million
what is the fixed costs of hamburger production, variable cost per hamburger, an average cost per burger when 3 million burgers are made, an average cost per burger when 4 million are produced?
In: Finance
Herman Co. is considering a four-year project that will require an initial investment of $12,000. The base-case cash flows for this project are projected to be $14,000 per year. The best-case cash flows are projected to be $26,000 per year, and the worst-case cash flows are projected to be –$4,500 per year. The company’s analysts have estimated that there is a 50% probability that the project will generate the base-case cash flows. The analysts also think that there is a 25% probability of the project generating the best-case cash flows and a 25% probability of the project generating the worst-case cash flows.
What would be the expected net present value (NPV) of this project if the project’s cost of capital is 11%?
A. $26,393
B. $22,434
C. $23,754
D. $31,672
Herman now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst-case scenario cash flows. If it decides to abandon the project at the end of year 2, the company will receive a one-time net cash inflow of $3,000 (at the end of year 2). The $3,000 the company receives at the end of year 2 is the difference between the cash the company receives from selling off the project’s assets and the company’s –$4,500 cash outflow from operations. Additionally, if it abandons the project, the company will have no cash flows in years 3 and 4 of the project.
Using the information in the preceding problem, find the expected NPV of this project when taking the abandonment option into account.
A. $30,952
B. $29,478
C. $28,004
D. $38,321
What is the value of the option to abandon the project?
*please have this in written form if you can
In: Finance
The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 49 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.1 pounds, what is the probability that the sample mean will be each of the following?
Appendix A Statistical Tables
a. More than 59 pounds
b. More than 57 pounds
c. Between 56 and 57 pounds
d. Less than 53 pounds
e. Less than 47 pounds
In: Statistics and Probability
In: Biology
On January 8, the end of the first weekly pay period of the
year, Regis Company's payroll register showed that its employees
earned $23,760 of office salaries and $60,840 of sales salaries.
Withholdings from the employees' salaries include FICA Social
Security taxes at the rate of 6.20%, FICA Medicare taxes at the
rate of 1.45%, $13,560 of federal income taxes, $1,420 of medical
insurance deductions, and $780 of union dues. No employee earned
more than $7,000 in this first period.
Required:
1.1 Calculate below the amounts for each of these
four taxes of Regis Company. Regis’s merit rating reduces its state
unemployment tax rate to 4% of the first $7,000 paid each employee.
The federal unemployment tax rate is 0.60%. (Round your
answers to 2 decimal places.)
1.2 Prepare the journal entry to record Regis Company's January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places.)
2. Prepare the journal entry to record Regis’s
(employer) payroll taxes resulting from the January 8 payroll.
Regis’s merit rating reduces its state unemployment tax rate to 4%
of the first $7,000 paid each employee. The federal unemployment
tax rate is 0.60%. (Round your answers to 2 decimal
places.)
In: Accounting
Selected balance sheet
information and the income statement for Fountainhead Corporation
for the current year are presented below.
| Selected Balance Sheet Accounts | ||||||
| Prior Year | Current Year | |||||
| Accounts Receivable | $ | 26,200 | $ | 18,000 | ||
| Merchandise Inventory | 36,000 | 39,600 | ||||
| Prepaid Rent | 2,600 | 0 | ||||
| Accounts Payable | 20,600 | 26,800 | ||||
| Salaries and Wages Payable | 5,200 | 7,800 | ||||
| Income Statement | |||
| Sales Revenue | $ | 540,000 | |
| Expenses: | |||
| Cost of Goods Sold | 308,000 | ||
| Depreciation Expense | 36,000 | ||
| Salaries Expense | 54,000 | ||
| Rent Expense | 21,600 | ||
| Insurance Expense | 21,600 | ||
| Interest Expense | 19,800 | ||
| Utilities Expense | 18,000 | ||
| Net Income | $ | 61,000 | |
Required:
Prepare the cash flows from operating activities section of the
statement of cash flows using the indirect method. (Enter
any deductions and cash outflows as a negative
value.)
References
In: Accounting
Our group incentive option gives us a bonus at the end of the year based on how profitable we were for the year.
[ Choose ] Stock Options. Gainsharing. Profit Sharing. Stock Purchasing.
Our group incentive option plan worked like this. The manager told us that if we could cut cost in our department by 5%, as a group we would get 5% of the savings to the company distributed evenly among us.
[ Choose ] Stock Options. Gainsharing. Profit Sharing. Stock Purchasing.
Our group incentive option allows me to buy company stock for 10% less than the market value.
[ Choose ] Stock Options. Gainsharing. Profit Sharing. Stock Purchasing.
Our group incentive option plan allows me to buy $50 shares of the company stock for only $13 apiece next year.
[ Choose ] Stock Options. Gainsharing. Profit Sharing. Stock Purchasing.
In: Finance