Royal Minty of Britain has purchased 20,000 ounces of silver from Silver Products at US$8.30, payable in 180 days. The current spot rate is 1.8127 ($US/£) and the 180-day forward is 1.7863. The CEO at Royal Minty suggests that the spot rate in six months time will be 1.7915.
Interest rates in Britain are currently 4.70 percent for 180 days and 1.15 percent in the United States.
a-1. Calculate the receipts if Royal Minty takes a chance on the spot rate. (Round the final answer to the nearest whole pound.)
Receipts £
a-2. Calculate the receipts if Royal Minty books a forward contract. (Round the final answer to the nearest whole pound.)
Receipts £
a-3. Calculate the receipts if Royal Minty buys a money market hedge. (Round intermediate calculations and the final answer to the nearest whole pound.)
Receipts £
In: Finance
This assignment is based on Review Question #4 on p. 527 of the textbook.
Romance Novels, Inc. has increased the number of contingent workers (temporary, full-time) from 10 to 28 percent of the workforce. Most of the contingent workers are employed as packers, which is the entry level job in the organization. Why might the company do this? What problems can arise when hiring contingent workers who work along side regular employees?
Title of book: Compensation (12th Edition)
In: Operations Management
Suppose that the annual demand for a component is approximately
60,000 units. The company orders the component from a supplier who
has offered the following quantity discount schedule.
|
Order Quantity |
Price per Unit |
|
0-999 |
$30 |
|
1,000-1,999 |
$29 |
|
2,000-3,999 |
$28 |
|
4,000 or more |
$27 |
If the company’s carrying charge is 15 percent of the item’s price and the cost per order is $150, determine the order quantity that would minimize the total related inventory costs for this component.
In: Operations Management
Suppose that the annual demand for a component is approximately 63,000 units. The company orders the component from a supplier who has offered the following quantity discount schedule.
Order Quantity Price Per Unit
0-999 $31
1,000-1,999 $29
2,000-3,499 $27
3,500 or more $25
If the company's carrying charge is 16% of the item's price and the cost per order is $170, determine the order quantity that would minimize the total related inventory costs for this component.
In: Operations Management
Suppose that the annual demand for a component is approximately 60,000 units. The company orders the component from a supplier who has offered the following quantity discount schedule.
| Order Quantity | Price per Unit |
|---|---|
| 0–999 | $30 |
| 1,000–1,999 | $29 |
| 2,000–3,999 | $28 |
| 4,000 or more | $27 |
If the company’s carrying charge is 15 percent of the item’s price and the cost per order is $150, determine the order quantity that would minimize the total related inventory costs for this component.
In: Operations Management
Q 18
To complete a contract for fitting out a new shop in time for its opening, a refurbishment company has employed three temporary painters for 10 days at £45 per day and moved two carpenters who are paid £70 per day from another job for three days. The penalty for late completion of the shop is £300 but the delay to the carpenters’ current job will only cost £150. What are the relevant costs?
| a) | £1,770 |
| b) | £1,500 |
| c) | £1,650 |
| d) | £1,800 |
In: Accounting
Pablo and Adriana, a married couple who file a joint return, purchased a $190,000 home making a $38,000 cash down payment and taking out a mortgage for the balance of the purchase price. They also paid the mortgage company $3,000 in points for originating the loan at closing. They paid $7,000 in interest on the mortgage this year. They also purchased a new car for $28,000 with a car loan from their credit union, paying $975 in interest for the year. What is their deduction for interest expense if they itemize their deductions?
In: Accounting
Suppose that the annual demand for a componet is aproximately 60,000 units. The company ordes the component from a supplier who has offered the following quantity discount shedule.
order Quantity Price per unit
0-999 $30
1,000-1,999 $29
2,000-3,999 $28
4,000-or more $27
If the company's carrying charges is 15 percent of the item's price and the cost per order is $150, determine yhe order quantity that would minimize the total related inventory cost for this component.
In: Accounting
Explain one type of stock or hybrid (something between debt and stock) debt/equity security that a company uses to generate capital (you are addressing stock from the standpoint of equity, not as an investment). Do not include basic common or preferred stock. Variants of these are permitted though. Note no duplication is allowed. If you post a similar security as another student, credit will be given to the person who first posts. Be sure to indicate accounting treatment, advantages & disadvantages of the security to each the issuer and the investor.
In: Accounting
In September, the company entered the following transactions:
Sept. 1 Issued common shares to Tony Ferria and other investors in exchange for $100,000 cash.
Sept 1 Paid $9,000 to Wellington Realty as three months’ advance rent on the rental yard and office formerly occupied by Rent-It
Sept 1 Purchased for $180,000 all the equipment formerly owned by Rent-It. Paid $70,000 cash and issued a one-year note payable for $110,000, plus interest at the annual rate of 9%. This rental equipment is estimated to have a 10-year useful life.
Sept 4 Purchased office supplies on account from Modern Office Co., $1,630. Payment due in 30 days. (These supplies are expected to last for several months.)
Sept 8 Received $10,000 cash from McFadden Construction Co. as advance payment for equipment rental.
Sept 12 Paid salaries for the first two weeks in September, $3,600.
Sept 15 Excluding the McFadden advance, equipment rental fees earned during the first 15 days of September amounted to $6,100, of which $5,300 was received in cash and $800 was an account receivable.
Sept 17 Purchased on account from Earth Movers, Inc., $340 in parts needed to repair a rental tractor. Payment is due in 10 days.
Sept 23 Collected $210 of the accounts receivable recorded on September 15.
Sept 26 Rented a backhoe to Mission Landscaping at a price of $100 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks.
Sept 26 Paid biweekly salaries, $3,600.
Sept 27 Paid the account payable to Earth Movers, Inc., $340.
Sept 28 Paid dividends of $2,000 cash.
Sept 30 Received a bill for utilities expense for the month of September, $270. Payment is due in 30 days.
Sept 30 Cash received from equipment rental during the second half of September, $6,450.
The information available on September 30 is as follows: the office supplies on hand are estimated at $1,100; $4,840 of the advance payment from McFadden Construction Co. has been earned; salaries earned by employees since the last payroll are $900.
Instructions:
In: Accounting