Why should you begin a case analysis with a financial analysis? When are other approaches appropriate?

Answers

Answer 1

A case analysis should start with a financial analysis because it shows how significant the problem is for a company. The primary goal of a business is to make money. studying the firm's total success is thus achievable through studying its financial performance.

A financial analysis will not only help you understand your company's financial health, determining its creditworthiness, profitability, and ability to generate money, but it will also provide you a more in-depth look at how well it functions internally. Horizontal analysis, vertical analysis, ratio analysis, trend analysis, and cost-volume profit analysis are the five most popular approaches to financial statement analysis. Each method enables the creation of a more thorough and sophisticated financial profile.

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Related Questions

he Petteys family plans to buy a home for $224,900, and has been offered a 30-year mortgage with a rate of 5.5% if they make a 20% down payment . Calculate the down payment. (Do not include a dollar sign with your answer)

Answers

Answer:

44,980

Explanation:

20 % of $224,900 = (20/100) × $224,900 = $44,980

Which of the following describes a situation in which a shortage occurs?

A. A computer company tries to charge too high a price for a new laptop computer.

B. There is an efficiency in the productive process used to make cell phones

C. Consumers want more video game systems then the company can make.

D. A clothing store put sweaters on sale to get rid of them before the end of winter.

Answers

Answer:

C. Consumers want more video game systems then the company can make.

The following model is a simplified version of the multiple regression model used by

Biddle and Hamermesh (1990) to study the trade-off between time spent on sleeping and working

and to look at other factors affecting sleep:


Where sleep and totwrk (total work) are measured in minutes per week and educ and age are

measured in years.

A. If adults trade off sleep for work, what is the sign of ?

B. What signs do you think and will have?

Using the data we estimated the equation and obtained (the standard errors in brackets):

Sleep = 3.638.25 - 0.148 totwrk - 11.13 educ + 2.20age

(112.28) (0.017) (5.88) (1.45)

n = 706 R2 = 0.113
C. Is either educ or age individually significant at the 5% level against a two-sided
alternative?
Dropping educ and age from the equation gives
Sleep = 3.586.38 - 0.151 totwrk
(38.91) (0.017)
n = 706 R
2
= 0.103

Are educ and age jointly significant in the original equation at the 5% level?
D. Does including educ and age in the model greatly affect the estimated trade-off between
sleeping and working?
E. Suppose that the sleep equation contains heteroskedasticity. What does it mean about the
tests computed in B and D

Answers

Answer:

A. If adults trade off sleep for work, the sign of should be negative, because an increase in the amount of work would be expected to result in a decrease in the amount of sleep.

B. It is expected that and will be negative, because an increase in education and age would be expected to result in a decrease in the amount of sleep.

C. Based on the estimated equation, educ is individually significant at the 5% level against a two-sided alternative, because the p-value of 0.000 is less than 0.05. Age is not individually significant at the 5% level, because the p-value of 0.139 is greater than 0.05.

D. Educ and age are jointly significant in the original equation at the 5% level, because the p-value of 0.000 is less than 0.05.

E. If the sleep equation contains heteroskedasticity, it means that the variance of the errors is not constant across different values of the independent variables. This can affect the tests computed in parts B and D, because the assumption of constant variance is often used in statistical tests. Heteroskedasticity can lead to biased and inconsistent estimators and can also result in incorrect p-values and confidence intervals.

Explanation:

Lisa, a supervisor at a manufacturing facility, suspects that one of her subordinates may be under the influence of drugs or alcohol. Which one of the following, if true, would lead Lisa to this conclusion?

Answers

If Lisa suspects that one of her subordinates is under the influence of drugs or alcohol, she should approach the situation with sensitivity and professionalism.

If Lisa suspects that one of her subordinates may be under the influence of drugs or alcohol, there could be several signs or symptoms that may lead her to this conclusion. One possible indicator is a change in behavior or attitude. For example, if the subordinate has become increasingly moody, agitated, or withdrawn, this could be a sign that they are struggling with substance abuse. Another possible sign could be a decline in job performance, such as missing deadlines, making mistakes, or being frequently absent from work. The subordinate may also exhibit physical symptoms, such as bloodshot eyes, slurred speech, or unsteadiness on their feet. Furthermore, Lisa may observe that the subordinate is experiencing financial problems, as drug and alcohol addiction can be costly and may lead individuals to miss work or spend their money on substances rather than other necessities. Lisa may also notice that the subordinate has become more secretive or defensive, particularly when questioned about their behavior or whereabouts. It is important to gather as much information as possible before making any accusations or taking any disciplinary action. She may also consider seeking guidance from the company's human resources department or employee assistance program to ensure that the subordinate receives the help they need to overcome their addiction.

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The following is an extract of Webee Ltd.’s balance sheet. What is its current ratio?

Particulars $
Cash 5,000
Accounts Receivable 5,000
Inventory 10,000
Prepayments 4,000
Long term Assets 100,000
Accounts Payable 2,000
Notes payable within 10 months 2,000
Wages Payable 4,000
Long term Liabilities 16,000
Stockholder's Equity 100,000

a. 2:1
b. 3:1
c. 6:1
d. 4:1

Answers

The current ratio of Webee Ltd is b. 3:1.The current ratio of Webee Ltd can be calculated by dividing its current assets by its current liabilities. Given that we have the company's balance sheet, we can easily find the current ratio.

Current assets are: Cash + Accounts Receivable + Inventory + Prepayments = $5,000 + $5,000 + $10,000 + $4,000 = $24,000Current liabilities are:

Accounts Payable + Notes payable within 10 months + Wages Payable = $2,000 + $2,000 + $4,000 = $8,000Now that we have both figures, we can calculate the current ratio as follows:

Current Ratio = Current Assets / Current Liabilities = $24,000 / $8,000 = 3:1.Therefore, the current ratio of Webee Ltd is b. 3:1.

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Paul’s grocery received 1,000 pounds of onion at $0.11 per pound. On the average, 3% of the onions will spoil before selling. Find the selling price per pound to obtain a makeup rate of 180% based on cost.

Answers

The selling price per pound for onions to obtain a makeup rate of 180% based on cost is $2.0350.

What is the selling price per pound for onions?

Total Cost = Quantity * Cost per pound

Total Cost = 1,000 pounds * $0.11/pound

Total Cost = $110

Spoilage Quantity = 3% of Quantity

Spoilage Quantity = 3% of 1,000 pounds

Spoilage Quantity = 0.03 * 1,000 pounds

Spoilage Quantity = 30 pounds

Effective Quantity = Quantity - Spoilage Quantity

Effective Quantity = 1,000 pounds - 30 pounds

Effective Quantity = 970 pounds

Makeup Rate = 180%

Selling Price per pound:

= (Total Cost * Makeup Rate) / Effective Quantity

= ($110 * 1.80) / 970 pounds

= $2.03505/pound.

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discuss the pillars of government sector supply chain management.

Answers

Answer:

Pillar 1 – Vulnerability. ...

Pillar 2 – Management Culture. ...

Pillar 3 – Procurement. ...

Pillar 4 – Operations. ...

Pillar 5 – Demand & Visibility.

Explanation:

hope it's helpful to you

Which of the following is a wise practice for making important purchases?
A. Skim return policies and warranties
B. Trust customer claims from the manufacturer
C. Ignore professional reviews
D. Be wary of customer testimonials
SUBMIT

Answers

Based on the question above, the correct answer is D

Be wary of customer testimonials SUBMIT

Consumer testimonials

This is the reports from customers which will confirm the positivity or negativity of the product based on their experiences on the product.

Therefore, the correct answer is D Be wary of customer testimonials SUBMIT

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Answer:D

Explanation: it’s right

PLEASE HURRY 90 POINTS AND BRAINLIEST TO WHOEVER ANSWERS

Trade School vs. College - How to Decide?
The choice to go to college or choose a trade school is a huge decision you may need to make in the near future. There are a lot of factors to consider when making this choice, so it is a good idea to start reading about the advantages and disadvantages of college and trade schools. Each path can lead to success depending on what you want to do with your life.

After reading the article, make your own list of pros and cons for both trade school and college. Highlight the most important details that will help you make your decision.

Next, develop a basic career and education plan. Your plan should briefly outline the following:

Any long and short-term goals for your education and career future
What high school and college programs might help you reach your goals
This plan can be created in any word processing program.

Once you have completed your list of pros and cons and developed your career and educational plan, answer the following questions:

The article states, “In the past, there may have been some stigma about trade schools not being a viable option to pursue well-paying, long-term careers. However, times have changed! Now more than ever students are looking for alternative education options that allow them to complete school on a faster timeframe with less financial investment.” A stigma is defined as a mark of disgrace associated with a situation or person. What does the author mean by saying that in the past there may have been some stigma about trade schools? Why do you think this stigma existed?
Why do you think this article was written? Does it seem that the author favors trade school and college as equally enriching experiences? Why?
How did the author organize the information? Did the structure of the article help you see the clear pros and cons of trade schools and colleges? Why?
What is the author’s point of view? Analyze and discuss how they distinguish their point of view from others.
What are two (or more) central ideas in this text? How are these ideas developed over the course of the article?
If you had to choose a path right now—college or trade school—which would you choose? Include details from the article that helped sway your decision.
How College Loans Exploit Students for Profit
Explain the issue Samuel discusses that has 40 million Americans in debt.
Samuel mentions three truths that you can’t ignore—briefly explain at least one of the following truths:
What is Income-Based Tuition? Discuss the three advantages to Income-Based Tuition.
4 Pillars of College Success in Science
Why did Hrabowski join the Children’s Crusade in Birmingham? What was the most important lesson that he learned?
Hrabowski states, “…most people don’t realize that it’s not just minorities who don’t do well in science and engineering.” Please explain this statement and give a brief summary regarding how Hrabowski supports this statement.
Why do students who attend the most prestigious universities in our country begin in pre-med or pre-engineering and engineering but end up changing their majors?
Explain the four things that Hrabowski’s university did to help minority students that are now helping all students?

Answers

The author of the article on trade schools versus college is encouraging students to weigh their options and make a decision based on what they want to do with their lives.

In the past, trade schools had a stigma attached to them as not being viable options for well-paying, long-term careers. However, now more than ever, students are looking for alternative education options that allow them to complete school in a faster timeframe with less financial investment.

The author wrote this article to provide information for students to make an informed decision. The author is not biased towards either college or trade schools but presents both as enriching experiences. The article is structured in a way that organizes the information in a clear and concise way, allowing the reader to see the pros and cons of both trade schools and colleges.

The author's point of view is that students should choose the path that best aligns with their goals and aspirations. They make it clear that college and trade schools can lead to success, depending on what the student wants to do with their life.

Two central ideas in the article are that both college and trade schools can lead to success, and students should choose the path that best aligns with their goals. These ideas are developed over the course of the article by providing pros and cons for both paths and discussing the importance of making a decision based on one's aspirations.

If I had to choose a path right now, I would choose college. This is because I am interested in pursuing a career in medicine, which requires a college degree. The article helped sway my decision by providing information on the advantages of college, such as the wide range of career options and opportunities for networking.

In "How College Loans Exploit Students for Profit," Samuel discusses the issue of student debt, which has left 40 million Americans in debt. One of the truths that Samuel mentions is that the student loan industry is a $100 billion industry that is making profits off of students.

Income-Based Tuition is a tuition payment option where the amount a student pays for tuition is based on their income. The three advantages of Income-Based Tuition are that it reduces the financial burden on students, it encourages students to pursue higher education, and it makes education more accessible to low-income families.

Hrabowski joined the Children's Crusade in Birmingham to protest against racial segregation and discrimination. The most important lesson he learned was the power of unity and how students can make a difference when they work together.

Hrabowski's statement means that there is a misconception that only minorities struggle in science and engineering when in reality, it is a problem that affects everyone. Hrabowski supports this statement by discussing the initiatives that his university has taken to help all students succeed in science and engineering.

Students who attend prestigious universities often begin in pre-med or pre-engineering because of societal pressure or the perceived status of these fields. However, they often end up changing their majors because they realize that their true passions lie elsewhere.

The four things that Hrabowski's University did to help minority students that are now helping all students are creating a supportive and inclusive community, providing mentorship opportunities, offering resources and support services, and promoting the importance of education.

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Briefly explain the difference between partnership and a company​

Answers

Answer:

Partnership Firm is a mutual agreement between two or more persons to run the business and share profit and loss mutually. Company is an association of persons with a common objective of providing goods and services to customers.

If a tenant becomes 90 days late in rent payments, what can the landlord do?
(A) All of the choices are correct.
B Sue the tenant in civil court for rent and legal expenses, while starting the eviction process
C) Take possession of a renter's property as payment for unpaid rent.
D Lock a tenant out of their apartment.

Answers

The correct answer is (A) All of the choices are correct.

When a tenant becomes 90 days late in rent payments, the landlord typically has several options available to them.

These options may vary depending on local laws and regulations, but generally, the landlord can: A) All of the choices are correct:

Sue the tenant in civil court for unpaid rent and legal expenses, seeking a judgment for the outstanding amount.

Initiate the eviction process by serving the tenant with a notice to pay rent or vacate the premises. If the tenant fails to comply, the landlord can proceed with the eviction.

Take possession of the renter's property as payment for unpaid rent, typically through a process known as a "landlord's lien" or "distraint."

Locking a tenant out of their apartment without following the proper legal procedures is generally illegal and can result in legal consequences for the landlord.

It's important for landlords to understand and follow the specific laws and regulations governing landlord-tenant relationships in their jurisdiction to ensure they take appropriate and lawful actions.

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The order of presentation of activities on the statement of cash flows is______________
1 point
a) Operating, Investing, and Financing.
b) Operating, Financing, and Investing.
c) Financing, Operating, and Investing.
d) Financing, Investing, and Operating.

Answers

The order of presentation of activities on the statement of cash flows is Operating, Financing, and Investing.

The option (B) is correct.

Cash flows are classified and introduced into working exercises (either utilizing the 'immediate' or 'circuitous' technique), contributing exercises, or funding exercises, with the last two classes commonly introduced on a gross premise. as it shows whether the business has sufficient fluid money to put in now is the ideal time and invest in assets.

When creating your income statement, list incomes first. Then, at that point, drill down any costs your organization had during the period and take away the costs from your income. The lower part of your pay proclamation will let you know whether you have a net gain or shortfall for the period.

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according to the fishery equation if a bank extends a loan for 3% and the inflation rate end up being 2% the blank interest rate isa. the nominal interest rate is 4.5%.
b. the real interest rate is 2%.
c. the nominal interest rate is 2%.
d. the real interest rate is -2%.
e. the nominal interest rate is 8%.

Answers

The answer is (OPTION D)  the nominal interest rate is 8%. The nominal interest rate is the rate of interest that banks, debt issuers, and investment firms advertise for loans and various sorts of investments.

It is the specified interest rate that is earned or paid by the investments or lender. Therefore, if you as a borrower receive a $100 loan at a rate of 6%, you can anticipate paying an interest fee of $6. The interest rate that is quoted at a bank on any particular day is an illustration of a nominal interest rate. This is the nominal interest rate if a bank offers a car loan with an annual interest rate of 2.59%.

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Becky Martinez owns stock in GBX Corporation. The GBX stock has a market value of $91,000 a share. If Becky receives $35,000.00 a year in dividends, what is the current yield? (Round your answer to 2 decimal places.)

Answers

Answer:

12.07%

Explanation:

A U.S. parent company's foreign equity accounts are translated into dollars using the historical rate or average rate based on the company's discretion.
A. True
B. False

Answers

The answer would be false.

A U.S. parent company's foreign equity accounts are translated into dollars using the historical rate or average rate based on the company's discretion. Thus, the given statement is false.

What are Equity Accounts?

Equity accounts serve as a financial representation of a company's ownership. Equity may arise from payments made by a company's shareholders or through residual income produced by the company. Equity is kept in several sorts of accounts due to the various sources of equity capital. All equity accounts have natural credit balances, with the exception of the treasury stock account.

A firm has either been incurring losses or has issued more dividends than it has available through retained earnings if the retained earnings account has a debit balance. Corporations frequently employ the following equity accounts. Total shareholders' equity is comprised of a number of different kinds of equity accounts. Common stock, preferred stock, contributed surplus, extra paid-in capital, retained earnings, other comprehensive earnings, and treasury stock are some of the accounts that make up this group.

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In all 50 states, the retail industry supports at least one in every:

A. 3 jobs

B. 10 jobs

C. 5 jobs

D. 7 jobs



Retailers are the heart of every local community. Small businesses and entrepreneurs are engines of local commerce, employing and serving their neighbors. Which of the following statements is true?

A 67.8 of all Retail Businesses employ fewer than 50 employees

B 72.7 of all Retail Businesses employ fewer than 50 employees

C 88.6 of all Retail Businesses employ fewer than 50 employees

D 98.6 of all Retail Businesses employ fewer than 50 employees

NEED HELP ASAP!!! PLS SKIP AND DONT GUESS IF YOU DONT KNOW!!! WILL MARK BRAINLIEST!! 15+ POINTS!!!

Answers

1. We can see here in all 50 states, the retail industry supports at least one in every: B. 10 jobs.

2. The statement that is true is: C. 88.6% of all Retail Businesses employ fewer than 50 employees.

What is a retail industry?

The retail industry refers to the sector of the economy that encompasses businesses involved in the sale of goods or services directly to consumers. It involves the process of purchasing goods or services from manufacturers, wholesalers, or suppliers and selling them to individual customers for personal use.

Retailers play a crucial role in connecting producers or suppliers with consumers.

According to the information provided, 88.6% of all retail businesses employ fewer than 50 employees. This highlights the significant presence of small businesses and entrepreneurs in the retail industry.

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Hector received three A’s and one b in his college course. What is his grade point average? Assume each course is three credits. A=4.0, b=3.0, c=2.0, d=1.0

Answers

Answer:

I think it is A id don't know

Which part of the result block should you evaluate to determine the Needs Met rating for that result?
True False
You always need to evaluate both the block and the landing page.
True
False
For a Special Content Result Block, you only need to evaluate the content inside the block and nothing else.
O True
False
For a Web Search Result Block, in most cases you should evaluate just the content inside the block.
O True
False
For a Special Content Result Block, evaluate the content inside the block. You may also need to evaluate the landing page as well in some cases.

Answers

You always need to evaluate both the block and the landing page. It is False

For a Special Content Result Block, you only need to evaluate the content inside the block and nothing else. It is True

For a Web Search Result Block, in most cases you should evaluate just the content inside the block. It is True

For a Special Content Result Block, evaluate the content inside the block. You may also need to evaluate the landing page as well in some cases. It is True

How to Know if the Needs met for the result

The answer is False because while it is important to evaluate both the block and the landing page in some cases, it is not always necessary to do so, depending on the type of search result and the specific evaluation criteria being used.

For a Special Content Result Block, there is always need to evaluate both the content inside the block and the landing page to know the Needs Met rating for that result, depending on the specific evaluation criteria being used.

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Discuss the challenge created for financial accountants by the presence of uncertainty.

Answers

Uncertainty creates challenges for financial accountants in accurately measuring, reporting, and disclosing financial information.

The presence of uncertainty poses significant challenges for financial accountants. Uncertainty refers to the lack of predictability or reliability in future events or outcomes, which makes it difficult to accurately measure and report financial information. Here are some key challenges created by uncertainty:

Measurement and valuation: Uncertainty makes it challenging to determine the appropriate measurement and valuation of assets, liabilities, revenues, and expenses.

Financial accountants must make estimates and judgments based on available information, assumptions, and professional judgment. However, the accuracy of these estimates may be compromised by the inherent uncertainty.

Financial statement presentation: Uncertainty affects the presentation of financial statements. Accountants must disclose the nature and extent of significant uncertainties that could impact the company's financial position and performance. However, determining which uncertainties are material and require disclosure can be subjective and complex.

Risk assessment: Uncertainty introduces risk into financial reporting. Accountants need to assess and manage risks associated with uncertain events, such as changes in market conditions, legal disputes, or environmental factors. They must consider the potential impact of these risks on financial statements and disclose them appropriately.

Forecasting and decision-making: Uncertainty makes forecasting and decision-making challenging for financial accountants. They need to analyze financial data and projections while considering the potential impacts of uncertain factors.

This requires them to use sophisticated models, scenario analysis, and sensitivity analysis to assess the range of possible outcomes.

Regulatory compliance: Financial accountants must comply with accounting standards and regulatory requirements. Uncertainty adds complexity to compliance efforts, as new and evolving regulations may require additional disclosures or adjustments to financial statements to reflect uncertain events or future obligations.

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Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. On December 31, Metrix shows the following selected accounts and amounts for the month of December.

Equipment $7,000 Office supplies $2,100
Salaries expense 3,600 Rental revenue 1,100
Consulting revenue 15,000 Advertising expense 520
Cash 9,200 Prepaid insurance 1,600
Utilities expense 320 Accounts payable 3,220
Note payable 3,000 Note receivable 3,100
Accounts receivable 4,100 Rent expense 2,600
Common stock 14,000 Unearned revenue 420
Dividends 2,600


Required:
a. Prepare a March income statement for the business.
b. Prepare a March statement of retained earnings. The Retained Earnings account balance at March 1 was $0.
c. Prepare a March 31 balance sheet. Hint: Use the Retained Earnings account balance calculated in part 2.

Answers

a. The March income statement for the business is $9,060.

b. The March statement of retained earnings is $6,460.

c. The March 31 balance sheet is :

Total Assets $27,100 Total Liabilities & Stockholders Equity $27,100

Income statement

a. Income Statement

Revenues:

Consulting revenue $15,000

Rental revenue $1,100

Total revenue $`16,100

Expenses:

Salaries expense $3,600

Utilities expense $320

Advertising expense $520

Rent expense $2,600

Total expenses ($7,040)

Net Income $9,060

($16,100-$7,040)

b.  Statement of Retained Earnings

Beginning retained earnings 0

Net Income $9,060

Less Dividends $2,600

Retained earnings, Ending $6,460

c. Balance Sheet

Assets Amount Liabilities + Stockholders Equity Amount

Current Assets:                                  Current Liabilities:

Cash $9,200                              Accounts payable $3,220

Accounts receivable $4,100           Note payable $3,000

Office supplies $2,100               Unearned revenue $420

Prepaid insurance $1,600              Total Current Liabilities $6,640

Note receivable $3,100              Stockholders Equity:

Total Current Assets $20,100          Common stock $14,000

Plant Assets :                                   Retained earnings $6,460

Equipment $7,000                       Total stockholders equity $20,460

Total Assets $27,100 Total Liabilities & Stockholders Equity $27,100

Inconclusion the March income statement for the business is $9,060 and the  March statement of retained earnings is $6,460.

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use a well labelled group to explain why the introduction of maximum prices in the petrol industry will not be an ideal decision for the country's economy?? ​

Answers

Implementing maximum prices in the petrol industry may not be an ideal decision for the country's economy.

Consumer Group:

Implementing maximum prices may initially benefit consumers as it could lead to lower fuel costs. However, it can have negative consequences in the long run. With lower prices, there may be increased demand for petrol, leading to shortages and long queues at gas stations. Additionally, if prices are kept artificially low, it can discourage investment in the industry, hampering exploration, production, and infrastructure development. This could result in limited supply and dependence on imports, potentially leading to fuel shortages and price fluctuations.

Business Group:

For businesses in the petrol industry, maximum prices can restrict their ability to cover costs and maintain profitability. Fuel companies have various expenses such as exploration, refining, distribution, and employee wages. If prices are capped, it can lead to reduced profit margins, making it challenging for companies to invest in new technologies, research, and development, which are crucial for improving fuel efficiency and reducing environmental impacts.

Government Group:

From a government perspective, implementing maximum prices can have adverse effects on tax revenues. Taxes on fuel sales contribute significantly to government revenue. If prices are capped, tax income will decrease, impacting the government's ability to fund public services and infrastructure projects. It can also limit the government's ability to incentivize renewable energy sources and reduce environmental pollution.

Considering these factors, the introduction of maximum prices in the petrol industry may have unintended consequences such as supply shortages, reduced investment, profitability challenges for businesses, and decreased tax revenue for the government. It is crucial to strike a balance between consumer affordability, industry sustainability, and government revenue to ensure a stable and efficient petrol market.

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John Jones owns and manages a café in Collegetown whose annual revenue is $5,000. Annual expenses are as follows:

Expense - Amount
Labor $2,000
Food and drink 500
Electricity 100
Vehicle lease 150
Rent 500
Interest on loan for equipment 1,000

a. Calculate John's annual accounting profit. $____ .
b. Suppose John could earn $1,000 per year as a recycler of aluminum cans, but he prefers to run the café. In fact, he would be willing to pay up to $275 per year to run the café rather than to recycle. Is the café making an economic profit?

(Yes/No) the café is making an economic (profit/loss) of $ ___ per year.

Should John stay in the café business? __

c. Suppose the café's revenues and expenses remain the same, but recyclers' earnings rise to $1,100 per year. Is the café making an economic profit?

(Yes/No), the café is making an economic (profit/loss) of $____ per year
Should John stay in the café business?

d. Suppose John had not had to get a $10,000 loan at an annual interest rate of 10 percent to buy equipment, but instead had invested $10,000 of his own money in equipment.

Calculate John's annual accounting profit. $

e. As in part b, suppose John could earn $1,000 per year as a recycler and he has to pay $1,000 per year in interest on his loan, but, unlike part b, suppose John likes recycling just as well as running the café.

How much additional revenue would the café have to collect each year to earn a normal profit? $____

Answers

Answer:

a.) $750

b.) Yes, the café is making an economic profit of $25 per year.

Yes, he should stay in the café business.

c.) No, the café is making an economic loss of $75 per year

No, he should not stay in the café business.

d.)$3,250

e.) $250

Explanation:

a) John's accounting profit is his revenue minus his explicit costs:$5,000 - $4,250 = $750

b) In this case, John's opportunity cost of running the café is $725 per year ($1,000 − $275 = $725). Thus, the café is making an economic profit of $25 per year ($5,000 − $4,250 − $725 = $25). Since the café is earning an economic profit, John should stay in the café business.

c) In this case, John's opportunity cost of running the cafe is $825 per year ($1,100 − $275 = $825). Thus, the cafe is earning an economic loss of $75 per year ($5,000 − $4,250 − $825 = −$75). Since the café is earning an economic loss, John should not stay in the café business.

d) John's accounting profit equals his revenue minus his explicit costs. If he doesn't need a loan, then his explicit costs equal $3,250. So, his accounting profit equals $1,750 (= $5,000 − $3,250).

e) To earn a normal profit, the café would have to cover all its implicit and explicit costs. The opportunity cost of John's time is $1,000 per year while the café's accounting profit is only $750 per year. Thus, the café would have to earn additional revenues of $250 per year in order for John to make a normal profit.

Determine the missing amount:
Assets=Liabilities+owners Equity x 272000 573000

Answers

Based on the given amounts of assets and liabilities, the missing amount of Owner's equity is $301,000

How to find the equity?

The Owners equity is one of the parts of the Accounting equation which is:

Assets = Liabilities + Owners Equity

The Assets in this instance is $573,000 and the Liabilities are $272,000.

The Owner's equity is the missing amount and it can be found as:

573,000 = 272,000 + Owners Equity

Owners Equity = 573,000 - 272,000

Owners Equity = $301,000

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Questions for Critical Thinking
1. Do you think Quirky’s basic business model is sound and fair? If you could suggest any changes, what would they be?
2. To what degree does Quirky’s business reflect the attributes of a sound business idea as described in Chapter 2?
3. In what other product areas would Quirky’s business model work the best?
4. Think of the challenges in your own life that might represent a product idea for Quirky. If you don’t think of something right away, don’t give up. All of us encounter problems and challenges in our everyday lives that might represent the basis of a promising idea. Be prepared to describe to others one of the challenges or problems you encounter and how a solution to the problem could be fashioned into a product idea to submit to Quirky.

Answers

Critical thinking questions1. Do you think Quirky’s basic business model is sound and fair? If you could suggest any changes, what would they be? Quirky’s basic business model is sound and fair because they involve the public in developing products by taking ideas from people and turning them into products, splitting the profits from the product sales with the inventor, and also collaborating with the inventor from the start of the idea to its final product.

However, there are a few changes I would suggest. First, the public could have more control over which product idea is to be developed into a product. Second, the company could offer more compensation to the inventor, especially if the product becomes a commercial success.2.

To what degree does Quirky’s business reflect the attributes of a sound business idea as described in Chapter 2?Quirky’s business idea reflects the attributes of a sound business as described in Chapter 2 of the text, including the following attributes:

Quirky is innovative in its business model, as it involves the public in developing products.Quirky has a good system of assessing the market’s demand for each product idea.

Quirky has a flexible business model, as it is able to adapt to changes in the market.3. In what other product areas would Quirky’s business model work the best?

Quirky’s business model could work well in a number of other product areas, including Home improvement and do-it-yourself (DIY) products;

Fashion and clothing; Outdoor gear and accessories; Personal care and hygiene; Consumer electronics.4. Think of the challenges in your own life that might represent a product idea for Quirky. If you don’t think of something right away, don’t give up.

All of us encounter problems and challenges in our everyday lives that might represent the basis of a promising idea. Be prepared to describe to others one of the challenges or problems you encounter and how a solution to the problem could be fashioned into a product idea to submit to Quirky.

One of the challenges I have encountered is the issue of losing small items such as keys, earrings, and others. A solution to this challenge could be fashioned into a product idea by developing a small, inexpensive device that could be attached to small items.

The device would emit a signal that would be detected by an app on the user’s phone if the item were lost. This could be developed into a product idea and submitted to Quirky for further development.

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Give an example of an official in public service who failed to show probity, and explain your
answer. :

Answers

Answer:

The perfect and perhaps most commonly known is former U.S. President Richard Nixon.

Explanation:

Nixon was President of the United States from 1969 to 1974, he was elected for two periods, but he only finished one and less than half the other one. The reason is that he was embroiled in the Watergate scandal: an espionage campaign of the Democratic Party from Republican officials, including Nixon himself.

With these acts, Nixon, as the highest public official in the nation, failed to show probity, and dishonored the office of the president. He was quick to renounce the presidency, and would have faced legal challenges if not for his Vice President, Gerald Ford, who became president as his replacement, and issued him a presidential pardon immediately after.

Which of the following is not a money market mutual fund?
A) a pension fund that tracks growth stocks
B) a fund with a minimum investment that tracks the value of cash
C) a fund that tracks the S&P 500
D) a fund that tracks commodities such as gold and silver

Answers

Answer:

The correct answer is Bonds. Money Market is used to defining a market where short-term financial assets with a maturity of up to one year are traded.

Explanation:

Hope it will help u ...

Answer: B) a fund with a minimum investment that tracks the value of cash

Explanation:

1. $4,076.92

2. Assets = Liabilities + Equity

3. They can be used to make online purchases.

4. by using an emergency fund for this unplanned expense

5. a fund with a minimum investment that tracks the value of cash

6. 1930s

7. Banks because they are highly regulated by the government, so the loan terms will not be predatory.

8. their vacation cabin

9. You should shop around for the best overall deal.

10. If you use a credit card, it is easy to run up huge debts.

11. They are tied directly to your bank account.

12. preventative care

13. $100,000 per person bodily injury, $300,000 per incident for bodily injury, $50,000 for property damage

14. how long the coverage lasts, how much the premium costs, and the cash value

15. 1-year renewable group term life

16. Identity thieves can intercept unencrypted data being sent to Wi-Fi hot spots.

17. Wells Fargo employees were opening unauthorized deposit and credit accounts for its customers.

18. 2 year in state community college degree

19. tuition assistance

20. -a sundae, -movie tickets

All of these answers are correct!

Personal Finance Semester Exam

5/12/2023


The CPI is based on the prices of a carefully selected market
basket of goods, all of which consumers can purchase at a
supermarket.
O True
O False

Answers

The CPI is based on the prices of a carefully selected market basket of goods, all of which consumers can purchase at a supermarket is false.

The CPI is a measure of inflation that tracks the average change over time in the prices paid by urban consumers for a fixed basket of goods and services.

The basket of goods and services included in the CPI represents the typical spending patterns of urban households, but it is not limited to items found in a supermarket. The basket includes a wide range of goods and services, such as housing, transportation, healthcare, education, and recreation, in addition to food and beverages.

The Bureau of Labor Statistics (BLS) in the United States, which calculates the CPI, regularly updates the basket of goods and adjusts their weights based on consumer spending patterns. The BLS collects data from thousands of retail stores, service establishments, and other providers to ensure a representative sample of prices across different regions and types of businesses.

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I usually do not experience sudden intuitive thoughts.
Disagree
Agree

Answers

Answer:

Disagree

Explanation:

6:00 PM If the contract is "mixed," the governing law (UCC or common law) is determined by: Multiple Choice a. Article 6. b. whether there was liability relating to a negotiable instrument.c. whether services were performed. d. the predominant factor. 6:00 PM

Answers

If the contract is "mixed," meaning it involves both the sale of goods and the performance of services, the governing law (UCC or common law) is determined by the predominant factor. This means that whichever aspect of the contract is the main focus or primary purpose will determine the governing law. The correct option is d.

For example, if the contract involves the sale of a computer and also includes installation and setup services, but the primary purpose of the contract is the sale of the computer, then the UCC (Uniform Commercial Code) would be the governing law.

On the other hand, if the primary purpose of the contract is the performance of services, then common law would be the governing law. The determination of the governing law is important because the UCC and common law have different rules and requirements for contracts, such as the statute of frauds, warranties, and remedies for breach of contract.

Therefore, it is important to understand which law governs the contract in order to properly interpret and enforce its terms. It is not determined by Article 6 or liability relating to a negotiable instrument, but rather by the predominant factor in the contract. The correct option is d.

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15-12: Stock Repurchase Bayani Bakery's most recent FCF was $50 million; the FCF is expected to grow at a constant rate of 5%. The firm's WACC is 10%, and it has $20 million shares of common stock outstanding. The firm has $86 million in short-term investments, which it plans to liquidate and distribute to common shareholders via a stock repurchase; the firm has no other non-operating assets. It has $368 million in debt and $68 million in preferred stock. a. What is the value of operations? b. Immediately prior to the repurchase, what is the intrinsic value of equity? c. Immediately prior to the repurchase, what is the intrinsic stock price? d. How many shares will be repurchased? How many shares will remain after the repurchase? e. Immediately after the repurchase, what is the intrinsic value of equity? The intrinsic stock price?

Answers

Answer:

a. Value of operations

Given the dividend discount method, the value is;

= FCF ( 1 + g) / ( WACC - g)

= 50 ( 1 + 5%) / (10% - 5%)

= $1,050‬ million

b. Intrinsic Value of equity prior to repurchase

= Total value of firm - Debt - Preferred Stock

= ( Value of operations + Short term investment) - Debt - Preferred stock

= ( 1,050 + 86) - 368 - 68

= $700 million

c. Stock price prior to repurchase

= Value of stock/ No. of stock

= 700/20

= $35

d. Stock to be repurchased

= Short term investment / Stock price

= 86,000,000/35

= 2,457,143 shares

Number of stock remaining

= 20,000,000 - 2,457,143

= 17,542,857‬ shares

e. Intrinsic Value of equity after repurchase

=  ( Value of operations + Short term investment) - Debt - Preferred stock

= ( 1,050 + 0) - 368 - 68

= $614 million

Intrinsic stock price

= Value of stock/ No. of stock

= 614,000,000/17,542,857‬

= $35

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