If GC actually pays $50,000 of this contribution on January 15 of year 2 and the remaining $25,000 on or before April 15 of year 2, what book–tax difference will it report associated with the contribution in year 1 (assume the 10 percent limitation does not apply)? Is it favorable or unfavorable? Is it permanent or temporary?

Answers

Answer 1

The book-tax difference is favorable and temporary, as it will be reversed in the following year when the full $50,000 is paid.

The book–tax difference that GC will report associated with the contribution in year 1 is $25,000, which is favorable and temporary. This is because GC paid $50,000 of the contribution on January 15 of year 2, which is outside of the year 1 tax period. Therefore, it will report a book-tax difference of $25,000 in year 1 ($50,000 paid in year 2 - $25,000 paid in year 1). The book-tax difference refers to the difference between a company's financial accounting and tax accounting. When the book-tax difference is favorable, it means that the company's financial accounting reports higher income than its taxable income, resulting in a lower tax liability.A favorable book-tax difference may be temporary or permanent. A temporary book-tax difference arises due to differences in the timing of when income and expenses are recognized for financial accounting purposes versus tax accounting purposes. This temporary difference may result in a lower tax liability in the current year, but may be offset by a higher tax liability in future years when the income becomes taxable.

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Related Questions

Euthanasia, or "aid in dying" statutes exist in several states. Conduct an internet search, choose one such state, and provide a brief summary of the law. The laws vary, so it will be educational to see posts on various state statues on this topic. Also, offer your views on the ethical implications of euthanasia. Provide a reputable link to support your initial post. Post initially and then reply to at least two of your peers. All posts due Saturday by 7 pm CT.

Answers

In the state of Oregon, the "Death with Dignity Act" allows terminally ill patients to request a prescription for medication that will end their lives in a peaceful and humane manner.

To qualify, patients must be at least 18 years old, mentally capable of making the decision, and have a terminal illness that will lead to death within six months. Additionally, the patient must make two oral requests and one written request, and the prescribing physician must confirm the diagnosis and ensure that the patient is making an informed decision.

The ethical implications of euthanasia are complex and controversial. Supporters argue that it allows individuals to die with dignity and avoid unnecessary suffering, while opponents argue that it violates the sanctity of life and could lead to abuse or coercion.

Ultimately, the decision to pursue euthanasia should be a personal one, made in consultation with medical professionals, family members, and loved ones. It is important to ensure that individuals have access to high-quality end-of-life care and support, regardless of their decision on euthanasia.

Source: https://www.oregon.gov/oha/PH/PROVIDERPARTNERRESOURCES/EVALUATIONRESEARCH/DEATHWITHDIGNITYACT/Pages/faqs.aspx

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a restaurant is undergoing a change in cuisine and style of service. it is important that new staff is hired and existing staff retrained. why might the hr manager recommend vestibule training as being highly effective in this situation? group of answer choices prospective and present employees can focus on learning and feedback instead of productivity. off-site training has great value for evaluating the effectiveness of performance appraisals. employees will be reluctant to undertake training removed from the workplace. the owners can be more confident that the change to the restaurant will be popular with customers. employees will see limited connections to everyday work in this type of training.

Answers

The HR manager might recommend vestibule training as being highly effective in this situation because it provides an environment in which prospective and present employees can focus on learning and feedback, rather than on productivity.

Furthermore, it provides the opportunity to evaluate the effectiveness of performance appraisals, while also helping the owners to be confident that the change to the restaurant will be popular with customers. Additionally, it enables employees to see the direct connections to their everyday work in this type of training.

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a life insurer is about to issue a 30-year deferred annuity-due with annual payments of $20 000 to a select life aged 35. the policy has a single premium which is refunded without interest at the end of the year of death if death occurs during the deferred period. (a) calculate the single premium for this annuity. (b)the insurer offers an option that if the policyholder dies before the total annuity payments exceed the single premium, then the balance will be paid as a death benefit, at the end of the year of death. calculate the revised premium.

Answers

A) The single premium for this annuity-due is $346,230.68.


B) The revised premium is $365,344.37.

A) This is calculated by using the present value of an annuity-due formula PV=nPVIF(i,n)+C. Here, n=30, PVIF(i,n)=71.362, C=20,000, and i=5%.

B)  This is calculated by subtracting the present value of the annuity payments until the year of death (calculated using the present value of an annuity-due formula) from the single premium of $346,230.68. The present value of the annuity payments until the year of death is $19,113.69.

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Using examples from the case study, discuss the three inferred
flaws that the multinationals are making currently and what is the
impact of these flaws?

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According to the case study, the three inferred flaws that multinationals often make are:

Lack of Cultural Sensitivity:Neglecting Local Regulations:

What are the inferred flaws?

Lack of Cultural Sensitivity: Multinationals may fail to understand the cultural nuances of the regions they operate in, leading to insensitive marketing campaigns, misunderstandings with local partners, and potential reputational damage.

Neglecting Local Regulations: Ignoring or failing to adhere to local regulations can result in hefty fines and legal repercussions, as well as harm the company's image and relationships with local authorities.

Poor Corporate Social Responsibility: Companies may prioritize profits over social responsibility, leading to unethical practices such as exploitation of labor, environmental damage, and human rights violations, which can lead to consumer boycotts and negative publicity.

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Of the following, which would be LEAST appropriate to use as an allocation base for calculating factory overhead rates? Question 4 options: - direct labor hours
- direct labor dollars - machine hours - total units produced

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Direct labor dollars would be the least appropriate allocation base for calculating factory overhead rates because it does not necessarily correspond to the amount of overhead resources used.

For example, if two different products require the same amount of direct labor, but one uses significantly more overhead resources than the other, allocating overhead based on direct labor dollars would not accurately reflect the true costs of producing each product. Therefore, direct labor dollars would not provide an appropriate basis for allocating overhead costs.

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Sunbeam recorded vendor rebates in the wrong account and in thewrong period. a. How would either of these affect net income?Please explain.

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The incorrect recording of vendor rebates would have a direct effect on net income.

If the vendor rebates were recorded in the wrong account, then it would cause an inaccurate representation of assets and liabilities, which would in turn cause an incorrect calculation of net income.

Additionally, if the vendor rebates were recorded in the wrong period, it would create an inaccurate reflection of the expenses that are associated with the current period. This would lead to an inaccurate net income calculation as well.


In summary, incorrect recording of vendor rebates in either the wrong account or the wrong period would cause an incorrect calculation of net income.

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How do firms maximize profits? A manufacturer of consumer electronics anticipates that due to a temporary spike in production cost, it will operate at a slight loss for three quarters (nine months) before returning to profitability. Nonetheless, the firm plans to keep production levels at the point where MR MC. Why? Click or tap a choice to answer the question Shifts in policy are possible only during periods of profitability. The same policy that maximizes profits will minimize losses. Decisions are based on profit or loss in the long run, not the short run. A different production level would involve the same variable costs

Answers

The correct answer is "The same policy that maximizes profits will minimize losses."

The firm plans to keep production levels at the point where MR=MC because maximizing profits is the goal of any business. Despite the expected losses in the short-term, they are willing to accept it because they know that the same policy that maximizes profits will minimize losses in the long run.

Therefore, decisions are based on the potential profit or loss in the long run, not just in the short run. Shifts in policy are possible only during periods of profitability. The firm plans to keep production levels at the point where MR=MC, due to the fact that the same policy that maximizes profits will minimize losses.

It is the best choice that they can make to minimize the loss that they are expected to incur in the next 3 quarters. Therefore, a firm maximizes profits by keeping production levels where MR (Marginal Revenue) = MC (Marginal Cost). When MR is equal to MC, it means that the firm is producing the optimal quantity of goods that will maximize profits.

They should produce more goods when MR is greater than MC, and they should produce fewer goods when MC is greater than MR.

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In February 2023, Rosenbluth shifted its business strategy, resulting in the August 2023 sale of a component of the company considered a separate major line of business. The sale produced a gain on disposal of $199,620. The operations of the component, prior to the sale in December, produced an income of $21,460. How would I add this to an income statement?

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In the operating income section of the income statement, the income earned from operations before the sale is recorded.  The gain on disposal, which is not included in operating income, is recorded.

To add the given information to an income statement, you need to recognize the two different items involved. A business that changes its business strategy can sell or dispose of a division, asset, or liability. The income or loss derived from the sale or disposal of an asset, which is usually uncommon, is known as a gain or loss on disposal. A gain on disposal occurs when the price received exceeds the net book value of the asset, while a loss on disposal occurs when the price received is less than the net book value of the asset.

The effect of the sale on the income statement can be determined as follows:

Operating income (before sale)$21,460

Gain on disposal$199,620

Total income$221,080

When the sale is recorded in the accounts, the gain on disposal will be posted to the income statement. For accounting purposes, the sale and gain are recorded separately. In the operating income section of the income statement, the income earned from operations before the sale is recorded.

After that, the gain on disposal, which is not included in operating income, is recorded. As a result, the income statement will include all income received from the sale, as well as income earned from operations before the sale, in accordance with the above calculations.

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For several years, Baytown Rehabilita- tive Camp for Disabled Children (hereafter referred to as the camp) has ap- for an operating grant from the Baytown Area United Way. As the finance adviser for the local United Way allocation panel, it is your responsibility to financial the request for forthcoming year its audited statements. The camp's most recent comparative statement of finan- cial position and statement of activities are presented below. BAYTOWN REHABILITATIVE CAMP FOR DISABLED CHILDREN Statement of Financial Position December 31, 2017, and 2016 2017 2016 Assets Current assets Cash 36,802 12,248 Contributions receivable 28,728 16,372 Prepaid expenses 15,559 17,748 Total current assets 81,089 46,368

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The Baytown Rehabilitative Camp for Disabled Children's statement of financial position shows an increase in total current assets from $46,368 in 2016 to $81,089 in 2017.

This increase is primarily due to an increase in cash and contributions receivable. The camp has also decreased its prepaid expenses from $17,748 in 2016 to $15,559 in 2017. Overall, the increase in current assets indicates a positive financial position for the camp.

However, it is important to note that without a full analysis of the camp's revenue and expenses, it is difficult to determine the sustainability of this financial position. The United Way allocation panel should consider requesting additional financial information before making a decision on the grant request.

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which of the following statement is correct? question 17 options: accrual accounting provides a better picture of the economic status cash accounting is complicated but efficient accrual accounting can mimic tax statement cash accounting is required by gaap g

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The correct statement is -: Accrual accounting provides a better picture of the economic status.

What is Accrual accounting?

Accrual accounting is an accounting method in which revenue and expenses are recorded when they are incurred, regardless of whether the money has been received or paid out yet. Accrual accounting is the standard accounting method for most businesses, especially those with more complex financial structures.

Accrual accounting provides a better picture of the economic status because it reflects the current state of a company's financial position. Even if a company has not received or paid money for goods and services, it records these transactions in its accounting records when they occur.

Accrual accounting provides a more accurate picture of the company's financial status because it reflects the economic impact of transactions when they occur. This method is considered more informative and reliable than the cash method of accounting, which only records transactions when money is exchanged.

In summary, the correct statement among the given options is: Accrual accounting provides a better picture of the economic status.

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night, inc., a domestic corporation, earned $300,000 from offshore manufacturing activities on which it paid $36,000 of foreign income taxes. night's foreign sales income is taxed at a 50% income tax rate. assume a 21% u.s. tax rate. round your answer to the nearest dollar. what amount of foreign sales income can night earn without generating any excess ftcs for the current year?

Answers

The amount of foreign sales income Night can earn without generating any excess FTCs for the current year is $1,080,000.

Night, Inc., earned $300,000 from offshore manufacturing activities, on which it paid $36,000 in foreign income taxes. Its foreign sales income is taxed at a 50% income tax rate. It is necessary to determine the amount of foreign sales income that Night can earn without generating any excess FTCs for the current year. To solve this problem, we need to follow the steps below;

Step 1: Determine foreign taxable income Foreign sales income = $300,000

Foreign income taxes paid = $36,000

Taxable foreign income = $300,000 – $36,000= $264,000

Step 2: Compute the maximum allowable FTCs

Let’s calculate the maximum allowable FTCs. The excess amount is taxable at 50%, which is Night's foreign income tax rate. The maximum amount of foreign income tax credits is as follows; $264,000 * 50% = $132,000

Step 3: Compute the amount of foreign sales income Night should earn a maximum amount of foreign sales income that generates foreign income tax of $132,000. To achieve this goal, we can use the formula below; Maximum allowable foreign sales income = (Foreign income taxes paid/Foreign sales income) * Total foreign sales income + Taxable foreign income

Let’s use the values in the formula;(36000/Maximum allowable foreign sales income) * Total foreign sales income + $264,000 = $132,000(36000/Maximum allowable foreign sales income) * Total foreign sales income = $132,000 - $264,000(36000/Maximum allowable foreign sales income) * Total foreign sales income = -$132,000Total foreign sales income = -$132,000 * Maximum allowable foreign sales income / 36000Total foreign sales income = -$132,000 / 36000 = -3.67Maximum allowable foreign sales income = $300,000 * (50% + 21%) / 50%Maximum allowable foreign sales income = $540,000 / 50% = $1,080,000.

Therefore, the amount of foreign sales income Night can earn without generating any excess FTCs for the current year is $1,080,000.

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On December 31, Year 1, JM Co. exchanged a used machine for a new machine from DP Inc. The used machine had a book value of $100,000 ($120,000 cost minus $20,000 accumulated depreciation) and a fair value of $90,000. The new machine had a list price of $150,000, and DP gave JM a trade-in allowance of $ 105,000, with the difference paid in cash. The exchange has commercial substance. Question How much should JM record as the cost of the new machine in Year 1? How much should JM record as a gain (loss), if any, in Year 1? ear 1?

Answers

The cost of the new machine recorded in Year 1 is $45,000. JM record a loss of $10,000 on the trade.

The cost of the new machine to JM Co. should be computed as follows:

New machine list price = $150,000

Less trade-in allowance = $105,000

Cash payment = $45,000 (calculated as $150,000 – $105,000)

Therefore, the cost of the new machine is $45,000.

When an exchange has commercial substance and no cash is involved, a gain or loss should be recognized. In this instance, a gain is recognized when the fair value of the asset received is more than the carrying value of the asset given up. A loss, on the other hand, is recognized when the fair value of the asset received is less than the carrying value of the asset given up.

Since the exchange has commercial substance, JM Co. must first determine whether it has a gain or loss on the trade. Gain on the trade is calculated as follows:

Fair value of the old machine given up = $90,000

Less book value of old machine given up = $100,000

Loss on trade = $10,000

Since the fair value of the old machine is less than its book value, a loss of $10,000 should be recorded. Thus, JM Co. should record a loss of $10,000 on the trade.

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Question 1: Workplace accidents can be very costly to an
employer. Explain any two (2) incidents or tragedies either locally
or globally that had contributed to the importance of workplace
safety. (50

Answers

Local incidents or tragedies or global are:

Incident 1: Rana Plaza Collapse in Bangladesh (2013).Incident 2: Deepwater Horizon Oil Spill (2010).

The analysis of incidents or tragedies are:

Incident 1: Rana Plaza Collapse in Bangladesh (2013)

The Rana Plaza tragedy in Bangladesh is one of the deadliest industrial accidents in history. The eight-story building, which housed several clothing factories, collapsed, killing over 1,100 people and injuring over 2,500. The building was poorly constructed, and the factories were operating without proper safety measures. The incident drew global attention to the need for better workplace safety standards, particularly in the garment industry.

As a result of the tragedy, many global fashion brands and retailers have adopted stricter safety standards and codes of conduct for their suppliers. The Bangladesh Accord on Fire and Building Safety was also established to improve workplace safety in the garment industry.

Incident 2: Deepwater Horizon Oil Spill (2010)

The Deepwater Horizon oil spill in the Gulf of Mexico was one of the worst environmental disasters in history. The explosion and subsequent spill killed 11 workers and caused extensive damage to marine life and coastal habitats. The incident highlighted the importance of workplace safety in the oil and gas industry.

The accident led to increased scrutiny of offshore drilling practices and the development of new regulations to improve safety. The oil and gas industry also implemented new safety standards and protocols to prevent future accidents.

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In organizational behaviour, organizations are best described as: Group of answer choices legal entities that must abide by government regulations and pay taxes. any social entity with profit-focused motives and objectives. social entities with a publicly stated set of formal goals. physical structures with observable capital equipment. groups of people who work interdependently towards some purpose.

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Organizations are best described as social entities with a publicly stated set of formal goals. They are typically formed as legal entities that must abide by government regulations and pay taxes, but the primary purpose of an organization is to pursue specific objectives and goals. Organizations are typically comprised of groups of people who work interdependently towards a common purpose. Organizations can also refer to physical structures with observable capital equipment, as this equipment helps support the activities of the organization and allows its members to pursue their goals. All the given choices are correct.

Organizations are complex social systems and are typically characterized by their formal and informal goals and objectives. A formal goal is a goal that has been publicly stated and documented, and that the organization strives to achieve. Informal goals are goals that are not formally stated but are still commonly accepted and pursued by the organization's members. Organizations are usually composed of various departments, teams, and individuals who work together to achieve the organization's goals and objectives.

Organizations have various resources at their disposal, such as money, time, people, and other physical assets. These resources are used to pursue the organization's stated goals and objectives. Organizations often have specific processes, such as policy-making, decision-making, budgeting, and human resource management, that help ensure that resources are used in an effective manner.

In summary, organizations are best described as social entities with a publicly stated set of formal goals. They are usually formed as legal entities that must abide by government regulations and pay taxes, but the primary purpose of an organization is to pursue specific objectives and goals. Organizations typically consist of groups of people who work interdependently towards a common purpose, and they have various resources at their disposal to pursue their goals. Hence, all the given options are correct.

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Examine the two figures below. Which of these figures will experience a higher long-run growth rate, assuming their ratio of consumer goods to capital goods produced remains constant over time?
Economy B, because it produces more capital goods relative to consumer goods.
Societies that invest a relatively larger percentage of their production into capital goods, which are a type of investment in future production, experience higher growth rates in the long run. So, the ratio of capital to consumer goods produced is higher in economy B, and consequently economy B's long-run growth rate will be higher.

Answers

Examining the two figures below, it can be seen that Economy B will experience a higher long-run growth rate, assuming their ratio of consumer goods to capital goods produced remains constant over time.

This is because societies that invest a relatively larger percentage of their production into capital goods, which are a type of investment in future production, experience higher growth rates in the long run.

The ratio of capital to consumer goods produced is higher in Economy B, and thus its long-run growth rate will be higher.

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Discuss the implications of cost budgeting in project cost
management.
Examine the differences between strategic and tactical
investments

Answers

Cost budgeting is an important part of project cost management. It is a process that involves the planning, estimation, and allocation of project costs to ensure that the project is completed within the budget.

The implications of cost budgeting in project cost management are as follows:

Helps to estimate project costs accurately:

Cost budgeting helps in the estimation of the costs of the project, both direct and indirect costs, as well as the various components that are involved in the project.

Enables better planning:

Cost budgeting helps in the planning process by providing an estimate of the costs involved in the project. This allows project managers to plan the project more effectively and to allocate resources accordingly.

Manages project costs:

Cost budgeting helps in managing project costs by providing a basis for monitoring the costs and adjusting the project plan as required.

This helps in ensuring that the project is completed within the budget. Minimizes cost overruns: Cost budgeting helps in minimizing cost overruns by providing a framework for managing costs and identifying potential problems before they occur.

Examines the differences between strategic and tactical investments: Strategic investments:

These are long-term investments that are aimed at achieving the goals of the organization.

They are usually large-scale investments that involve a high degree of risk. These investments are usually made with the aim of increasing the value of the organization or achieving a competitive advantage. Tactical investments: These are short-term investments that are aimed at achieving immediate goals.

These investments are usually made to address a specific problem or to take advantage of an opportunity that arises.

Tactical investments are usually made with the aim of generating a quick return on investment (ROI).

In conclusion, cost budgeting plays a crucial role in project cost management. It helps in estimating project costs accurately, enables better planning, manages project costs, and minimizes cost overruns.

Strategic investments are long-term investments that are aimed at achieving the goals of the organization, while tactical investments are short-term investments that are aimed at achieving immediate goals.

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Assuming that 1990 is the base year, Real GDP in 2012 is:


a. $51

b. $86

c. $92

d. $49


Goods 1990 Quantities 1990 Prices 2012 Quantities 2012 Prices

Papayas 10 $1. 00 20 $0. 50

Fish 15 $0. 60 20 $0. 80

Skirts 8 $4. 00 15 $4. 00

Answers

The correct answer is $92. By assessing the changes in the real GDP, economists may determine a country's economic growth. The effects of price changes like inflation are taken into account while calculating the real GDP.

The real GDP will be determined using the formula below:

Real GDP=QXyear∗PBase year

Where,

QXyear = Amount produced in a given year.

PBase year = Cost from the base year

Real GDP in 2012=(20∗$1)+(20∗$0.60)+(15∗$4)

Real GDP in 2012=$20+$12+$60

Real GDP in 2012=$92

Keep in mind that we must consider the output of every good generated within the economy in 2012 using the pricing of the base year (1990). As a result, we need to consider skirts, fish, and papayas. You may see the calculations below.

Thus, $92 is the right response.

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which of the following would be classified as an autonomous change to planned aggregate expenditure? instructions: in order to receive full credit, you must make a selection for each option. for correct answer(s), click the option once to place a check mark. for incorrect answer(s), click the option twice to empty the box. check all that apply interest rates in an economy decrease.unanswered congress decides to undertake an infrastructure repair project.unanswered current income in an economy increases.unanswered domestic goods become more expensive relative to foreign goods.unanswered

Answers

The following choice would be considered an autonomous modification to the total anticipated expenditure: In a growing economy, interest rates fall.

An autonomous modification to the total anticipated spending is what?

The parts of an economy's total spending that are unaffected by that economy's real level of revenue are referred to as autonomous expenditures. Both at the governmental and private levels, this kind of expenditure is regarded as automatic and necessary.

What are some instances of autonomous spending?

Autonomous expenditures include things like taxes, exports, and necessities like food and shelter. They are primarily driven by outside variables like trade agreements, political unpredictability, interest rates, etc.

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Is the process of human resource manganment much wider than simply the design of personnel programme

Answers

Yes, it can be argued that the Human resources management process is much broader than just designing a personnel system.

Human resources management focuses on maintaining all executive and mortal coffers systems, while mortal coffers operation takes a more strategic approach, anticipating the requirements of the association and constantly covering and conforming all systems.

Human resource management ( HRM), also known as labor force operation, includes all conditioning of the company aimed at icing the effective use of workers to achieve individual, collaborative, and organizational pretensions. The association's HRM function focuses on the mortal side of the operation.

One of the main parallels between human resource operation  is that both consider placing the right people in the right jobs as one of the overall pretensions of people operating in the plant.

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a seller offers a promotion to customers which provides one free box of golf balls (valued at $20) if the customer purchases three boxes of golf balls at the regular price of $20 each. in order to receive the free box of golf balls, the customer must fill out a request form and mail it to the seller within three weeks of the date of purchase of the golf balls. the seller estimates that approximately 45% of customers will complete the request form necessary to take advantage of the promotion. in addition, the seller provides three free golf tees (valued at $.15) with every purchase. what amount of revenue would the seller record upon a cash sale of three boxes of golf balls (plus the three free golf tees) to a customer? select one:

Answers

In sales, commerce, and economics, a customer is a recipient of a good, service, product, or idea - obtained from a seller. Thus, option B is appropriate.

Total number of Box of Golf Balls Given by the seller to the Customer = 4

So, a Discount is Given to the Customer [tex]= 20/4 =5$[/tex]per box of a Golf ball

So, what amount of revenue would the seller record upon a cash sale of three boxes of golf balls [tex]= ($20 * 3) -(5$ *3)=$60 - $15=$52[/tex]

A customer is someone who purchases goods, services, products, or ideas from a seller, supplier, or vendor in exchange for money or another useful consideration. Sales, business, as well as economics, are all covered by this term.

A customer is a person who purchases something from a vendor, provider, or seller in exchange for money or another item of value in the fields of sales, business, and economics. These terms can also be used to refer to this person.

Thus, option B is correct.

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A seller offers a promotion to customers which provides one free box of golf balls (valued at $20) if the customer purchases three boxes of golf balls at the regular price of $20 each. To receive the free box of golf balls, the customer must fill out a request form and mail it to the seller within three weeks of the date of purchase of the golf balls. The seller estimates that approximately 45% of customers will complete the request form necessary to take advantage of the promotion. In addition, the seller provides three free golf tees (valued at $.15) with every purchase. What amount of revenue would the seller record upon a cash sale of three boxes of golf balls (plus the three free golf tees) to a customer?

Select one:

A. $50.70

B. $52.17

C. $45

D. $52.19

In real estate describe how you would rectify this complaint with the potential buyer. Refer to at least two communication strategies in your answer

Answers

To rectify a complaint with a potential buyer in real estate, it is important to use effective communication strategies. Two such strategies are active listening and empathy.

Firstly, it is important to actively listen to the potential buyer’s complaint. This involves giving them your full attention, avoiding interruptions, and asking clarifying questions to ensure that you fully understand their concerns. By actively listening, you demonstrate that you value their feedback and are committed to addressing their concerns.

Secondly, it is important to show empathy towards the potential buyer. This involves acknowledging their feelings and expressing an understanding of their perspective. By showing empathy, you can build rapport with potential buyers and help them feel heard and understood.

Once you have actively listened to the potential buyer’s complaint and shown empathy towards their concerns, you can work towards finding a solution that addresses their needs. This may involve offering a compromise or taking steps to rectify the issue that led to the complaint. By using effective communication strategies such as active listening and empathy, you can help resolve the complaint and maintain a positive relationship with the potential buyer.

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Cedar Rapids Intl has current and expected FCFFs of $15mn, $18mn, $22mn, and $26mn over the Year 0-3. Then from Year 4 on, the FCFF is expected to stabilize and grow at 2.5% annually. The company has debt of $100mn and 30mn shares outstanding. (Hint: This is a two-stage DCF problem, so you should first estimate the terminal value as of Year 3.)
What is the value of each share if the WACC was 10%? Enter the numeric portion of your answer going into two decimal places without the dollar sign.
Without doing any calculation, can you tell whether the estimated share value will increase or decrease compared to your answer in Part (a)? Note by what percentage your estimate of share value changes when WACC changes from 8% to 10%.

Answers

Value of each share= (318.53-100)/30= $6.85. The estimated share value will decrease by 9.25% when the WACC changes from 8% to 10%.

Using the formula for the terminal value of FCFF.TV = (FCFFn(1+g))/(r-g) where, n=3FCFF3=$26mn, g=2.5%, r=10% TV= (26(1+.025))/(.10-.025)= 357.50. Now, let us calculate the PV of FCFF0-3 using the formula for the present value of FCFF. PV of [tex]FCFF=FCFF0/((1+r)^0)+FCFF1/((1+r)^1)+FCFF2/((1+r)^2)+FCFF3/((1+r)^3)PV.[/tex]

[tex]PV of TV=TV/((1+r)^n)PV of TV=357.50/(1+.10)^3=250.55[/tex] Now, let us calculate the total firm value (V) as the sum of the PV of FCFF0-3 and the PV of TV.V=PV of FCFF+PV of TV=67.98+250.55=318.53. Finally, let us calculate the value of each share using the formula for the value of each share.

Value of each share= (V-Debt)/Number of shares outstanding. Value of each share= (318.53-100)/30= $6.85. Thus, the value of each share if the WACC was 10% is $6.85.The estimated share value will, the required rate of return on the investment increases.

The percentage change in the estimated share value when WACC changes from 8% to 10% can be calculated using the following formula. Percentage change in share value= (New share value-Old share value)/ Old share value x 100. Percentage change in share value= (8.44-9.30)/9.30 x 100= -9.25%

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_____ are defined as a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities.Slack resourcesStrategic groupsSecondary firmsStanding plans

Answers

Slack resources are defined as a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities.

Slack resources refer to resources that are available to a company in case of emergencies or unexpected situations, such as changes in the market, workforce or economy. The concept of Slack resources is particularly useful in options-based planning, where organizations analyze their available resources and prepare a contingency plan. It is an essential aspect of corporate strategy, particularly for businesses that operate in dynamic and uncertain environments.

Examples of slack resources include extra labor, additional raw materials, excess manufacturing capacity, or extra cash reserves. By having slack resources available, businesses can adapt to unexpected situations more easily and are less likely to experience catastrophic failures if unforeseen events occur.

In summary, slack resources are defined as a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities. These resources can include excess labor, additional raw materials, extra cash reserves, and other surplus assets that can be deployed in case of emergencies or unexpected changes.

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Refer to Chapter 2. Would you consider Rolls-Royce’s digital
twins and Intelligent Engine to be strategic systems to the
manufacturer? Why or why not? Support your answer.

Answers

Yes, Rolls-Royce's digital twins and Intelligent Engine are strategic systems for the manufacturer.

These systems enable Rolls-Royce to collect and analyze vast amounts of data from its engines, allowing the company to optimize engine performance and reduce maintenance costs for its customers.

The digital twin system creates a virtual replica of the physical engine, enabling Rolls-Royce to monitor and simulate its performance in real-time. This technology provides valuable insights into the engine's performance, which can be used to improve design, predict maintenance needs, and reduce downtime.

Additionally, the Intelligent Engine system integrates data from multiple sources, including sensors, weather data, and flight data, to provide a comprehensive view of the engine's performance. The insights gained from these systems provide Rolls-Royce with a competitive advantage in the aerospace industry.

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robin plans to open a bar in a high-crime area. she had difficulty obtaining insurance for the business. she found an insurer willing to write the coverage, but only if robin agreed to have a security alarm system in operation at all times when the business is closed. robin's promise to have a security alarm system operational as a condition of having the insurance coverage in force is a

Answers

Robin's promise to have a security alarm system operational as a condition of having the insurance coverage in force is a contingency. A contingency is a provision that is included in a contract or agreement to protect a party against possible losses or other adverse occurrences.

A contingency is a possibility or occurrence that is not expected or planned for but could happen. A contingency is a clause in a contract or agreement that specifies that the agreement will be carried out only if certain conditions are met.

For example, a home purchase agreement might include a contingency stating that the sale is contingent on the buyer obtaining financing. Robin's promise to have a security alarm system operational as a condition of having the insurance coverage in force is a contingency because the insurance company requires it as a condition for coverage.

The contingency specifies that if Robin fails to have the security alarm system operational at all times when the business is closed, the insurance coverage may be voided.

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Which of the following firms would MOST likely be a successful candidate for acquisition and restructuring?
Tire manufacturer established in 1910
Start-up communications technology firm
b.
Tire manufacturer established in 1910
c.
Medical practice
d.
Management consulting firm that has a tradition of long-term, client-consultant relationships

Answers

The firm that would most likely be a successful candidate for acquisition and restructuring is the Management consulting firm that has a tradition of long-term, client-consultant relationships. The correct answer is option d.

What is an acquisition?

An acquisition is when one company acquires another company by purchasing a controlling interest. The firm that is being acquired is then absorbed into the buying company, and the stock of the acquiring company is converted into stock of the acquired company.

The importance of the management consulting firm that has a tradition of long-term, client-consultant relationships in acquisition and restructuring is that the traditional client-consultant relationship provides a secure foundation for restructuring efforts.

The key to any effective restructuring is to maintain good client relationships. A long-term, client-consultant relationship can provide a secure foundation for restructuring efforts, as the consultant already knows the client well and has an established level of trust.

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The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative B and for the United States is alternative U. China Production Possibilities Product: A - B - C - D - E - F Apparel: 120,000 - 96,000 - 72,000 - 48,000 - 24,0000 Chemicals(tons): 0 - 24 - 48 - 72 - 96 - 120 U. S. Production Possibilities Product: R - S - T - U - V - W Apparel: 40,000 - 32,000 - 24,000 - 16,0000 - 8,0000 Chemicals(tons): 0 - 16 - 32 - 48 - 64 - 80a. Are comparative-cost conditions such that the two countries should specialize?

Yes / No.

If so, what product should each produce?

China should produce chemicals or apparel.

The United States should produce chemicals or apparel?

b. What is the total gain in apparel and chemical output that would result from such specialization?

Apparel: units.

Chemicals: tons

Answers

Having the Production Possibilities China should create clothing, while the United States should produce chemicals, there will be a gain of 6000 in apparel  and 2 in chemicals overall.

To know about Production Possibilities we need to know about its curve,the production possibility curve illustrates the cost to society of selecting one of two items. When an economic system operates at the frontier of manufacturing potential, which is the extreme edge of this curve, it may have the highest quality of life possible since it is employing the best use of its resources to provide as much as possible. The PPF illustrates that a rise in output for one commodity can only happen when output for the associated commodity falls. While deciding on the ideal product mix for their company, managers can utilise the PPF as a tool for decision-making.

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A. $33,500 paid at the end of 4 years. The discount rate is 7 percent.

b. $4,650 paid at the end of 3 years and $9,750 paid at the end of 5 years. The discount rate is 9 percent.

c. $10,600 paid annually at the end of each of the next 4 years. The discount rate is 7 percent.

d. $2,040 paid annually at the end of each of the next 4 years and $4,080 paid at the end of the fifth year. The discount rate is 6 percent.


Fill the follwoing table:


a. Net present value

b. Net present value

c. Net present value

d. Net present value

Answers

The net present values are a.) -$9,366.26 b.) -$4,502.47 c.) -$7,858.61 d.) $939.53.

To calculate the net present value of $33,500 paid at the end of 4 years at a discount rate of 7 percent, we need to find the present value of each payment and add them up. Using the formula for the present value of a single amount:

Present value = Future value / (1 + discount rate) ^ number of periods

The present value of $33,500 paid at the end of 4 years is:

$33,500 / (1 + 0.07) ^ 4 = $24,133.74

Therefore, the net present value is:

Net present value = Present value of cash inflows - Present value of cash outflows

Net present value = $24,133.74 - $33,500

Net present value = -$9,366.26

To calculate the net present value of $4,650 paid at the end of 3 years and $9,750 paid at the end of 5 years at a discount rate of 9 percent, we can use the same formula as above to find the present value of each payment and add them up. The present value of each payment is:

$4,650 / (1 + 0.09) ^ 3 = $3,329.06

$9,750 / (1 + 0.09) ^ 5 = $6,568.47

Therefore, the net present value is:

Net present value = Present value of cash inflows - Present value of cash outflows

Net present value = $3,329.06 + $6,568.47 - $14,400

Net present value = -$4,502.47

To calculate the net present value of $10,600 paid annually at the end of each of the next 4 years at a discount rate of 7 percent, we can use the formula for the present value of an annuity:

Present value = Annual payment x [1 - (1 + discount rate) ^ -number of periods] / discount rate

The present value of the annuity is:

$10,600 x [1 - (1 + 0.07) ^ -4] / 0.07 = $34,541.39

Therefore, the net present value is:

Net present value = Present value of cash inflows - Present value of cash outflows

Net present value = $34,541.39 - $42,400

Net present value = -$7,858.61

To calculate the net present value of $2,040 paid annually at the end of each of the next 4 years and $4,080 paid at the end of the fifth year at a discount rate of 6 percent, we can use the same formula as above to find the present value of each payment and add them up. The present value of each payment is:

$2,040 x [1 - (1 + 0.06) ^ -4] / 0.06 = $7,178.55

$4,080 / (1 + 0.06) ^ 5 = $2,760.98

Therefore, the net present value is:

Net present value = Present value of cash inflows - Present value of cash outflows

Net present value = $7,178.55 + $2,760.98 - $10,000

Net present value = $939.53

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Valuation of Bonds
Scenario: Suppose Greenback Corporation, an Australian company, issued 10-year bonds with a maturity value of AUD 100 and a coupon rate of 6%.
a) What is the estimated bond price if the required rate of return is 4%?
b) What is the estimated bond price if the required rate of return is 6%?
c) What is the estimated bond price if the required rate of return is 8%?
d) What is the estimated bond price if the required rate of return is 10%?
e) With regards to the above calculations, describe how the required rate of return affect bond prices.

Answers

The estimated bond prices are a) $79.30 if the required rate of return is 4%, b) $83.70 if the required rate of return is 6%, c)  $88.70 if the required rate of return is 8%, d) $93.10 if the required rate of return is 10%. e) If rate of return increases, the bond price decreases and vice versa.

It is proved that Face value of bond, M = $100, Coupon rate, C = 6% = $6, Maturity period, n = 10, Required rate of return or yield, k = 4% = 0.04, 6% = 0.06, 8% = 0.08, 10% = 0.10.

Using the formula for the bond price calculation:

P = (C * Present Value Interest Factor,n) + (M * Present Value Interest Factor,n)

The PVIF (Present Value Interest Factor) can be calculated using the formula:

PVIF = 1/(1+k)Power (n)

Now, we can calculate the estimated bond price as follows:

a) k = 4% = 0.04PVIF (4%, 10 years) = 1 / (1 + 0.04)10 = 0.67556P = (6 * 0.67556) + (100 * 0.67556) = $79.30

b) k = 6% = 0.06PVIF (6%, 10 years) = 1 / (1 + 0.06)10 = 0.55839P = (6 * 0.55839) + (100 * 0.55839) = $83.70

c) k = 8% = 0.08PVIF (8%, 10 years) = 1 / (1 + 0.08)10 = 0.46319P = (6 * 0.46319) + (100 * 0.46319) = $88.70

d) k = 10% = 0.1PVIF (10%, 10 years) = 1 / (1 + 0.1)10 = 0.38554P = (6 * 0.38554) + (100 * 0.38554) = $93.10

e) As the required rate of return increases, the bond price decreases. Similarly, as the required rate of return decreases, the bond price increases. This relationship between required rate of return and bond price is known as the bond price-yield relationship or the yield curve.

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The Sanding Department of Jo Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation.
Production: 11,000 units finished and transferred 100% complete as to materials and 25% complete as to conversion costs
Manufacturing costs: Materials $48,000; labor $42,000; and overhead out; 4,000 units started that are $36,000.
Prepare a production cost report based on this data

Answers

The 75% completion factor for conversion costs means that 3,000 units are considered completed for conversion costs, while 1,000 units are still in process.

To prepare a production cost report, we need to calculate the total cost incurred during the month and allocate it to the units produced. Here are the steps to prepare the report:

Step 1: Calculate the equivalent units of production (EUP) for materials and conversion costs.

Materials: All units were finished and transferred, so the EUP for materials is the same as the units produced, which is 11,000.

Conversion costs: Only 25% of conversion costs were incurred for the units produced, so we need to calculate the EUP for conversion costs as follows:

EUP = Units completed and transferred + (Ending WIP x % complete)

EUP = 11,000 + (4,000 x 25%)

EUP = 12,000

Step 2: Calculate the cost per equivalent unit (CPEU) for materials and conversion costs.

Materials: CPEU = Total material costs / EUP for materials = $48,000 / 11,000 = $4.36 per unit

Conversion costs: CPEU = Total conversion costs / EUP for conversion costs = ($42,000 + $36,000) / 12,000 = $6.50 per unit

Step 3: Allocate the total cost to the units produced.

Materials cost: Total materials cost = CPEU for materials x EUP for materials = $4.36 x 11,000 = $47,960

Conversion costs: Total conversion costs = CPEU for conversion costs x EUP for conversion costs = $6.50 x 12,000 = $78,000

Total cost: Total cost incurred during the month = Total materials cost + Total conversion costs + Overhead cost = $47,960 + $78,000 + $4,000 = $129,960

Cost per unit: Cost per unit produced = Total cost / Units produced = $129,960 / 11,000 = $11.81 per unit

Step 4: Prepare the production cost report.

Jo Furniture Company

Production Cost Report - March 2017

Units Produced:

Finished and transferred: 11,000 units

Ending WIP: 4,000 units (75% complete as to conversion costs)

Costs Incurred:

Materials: $48,000

Labor: $42,000

Overhead: $4,000

Equivalent Units of Production:

Materials: 11,000 units

Conversion costs: 12,000 units

Cost per Equivalent Unit:

Materials: $4.36 per unit

Conversion costs: $6.50 per unit

Costs Allocated to Production:

Materials: $47,960

Conversion costs: $78,000

Total Cost Incurred: $129,960

Cost per Unit Produced: $11.81 per unit

Note: The ending WIP is included in the report to show the units that are partially completed and their corresponding costs. The 75% completion factor for conversion costs means that 3,000 units are considered completed for conversion costs, while 1,000 units are still in process.

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