Listed below are a few events and transactions of Kodax Company.
Year 1
Jan. 2 Purchased 82,000 shares of Grecco Co. common stock for $546,000 cash. Grecco has 246,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax.
Sept. 1 Grecco declared and paid a cash dividend of $1.30 per share.
Dec. 31 Grecco announced that net income for the year is $510,900.
Year 2
June 1 Grecco declared and paid a cash dividend of $3.20 per share.
Dec. 31 Grecco announced that net income for the year is $740,400.
Dec. 31 Kodax sold 13,000 shares of Grecco for $99,500 cash.
Prepare journal entries to record the above transactions and events of Kodax Company. (Do not round intermediate calculations and round your final answers to the nearest dollar amount.)

Answers

Answer 1

Answer:

Year 1

Jan. 2 Purchased 82,000 shares of Grecco Co. common stock for $546,000 cash. Grecco has 246,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax.

Dr Investment in Grecco Co. 546,000

    Cr Cash 546,000

Sept. 1 Grecco declared and paid a cash dividend of $1.30 per share.

Dr Cash 106,600

     Cr Investment in Grecco Co. 106,600

Dec. 31 Grecco announced that net income for the year is $510,900.

Dr Investment in Grecco Co. 170,300

     Cr Revenue from investment in Grecco Co. 170,300

Year 2

June 1 Grecco declared and paid a cash dividend of $3.20 per share.

Dr Cash 262,400

     Cr Investment in Grecco Co. 262,400

Dec. 31 Grecco announced that net income for the year is $740,400.

Dr Investment in Grecco Co. 246,800

     Cr Revenue from investment in Grecco Co. 246,800

Dec. 31 Kodax sold 13,000 shares of Grecco for $99,500 cash.

each share is worth = $7.2695

Dr Cash 99,500

     Cr Investment in Grecco Co. 94,504

    Cr Gain from investment in Grecco Co. 4,996


Related Questions

The change in technology and the globalization have brought new pattern of organizing
today's companies, and thus, the managers need to consider these new concepts in
organization's design process. With this statement, discuss the emerging issues in
organization design and architecture.

Answers

Following are the emerging issues in organization design and architecture:Technology and Globalization, Customer Relations,Technical Knowledge, Flexibility, Employee's Well-being.

Following are the emerging issues in organization design and architecture:

Technology and Globalization: The modern era's rapid technology and globalization have forced the organizations to adopt a new pattern of organizing. Managers are focusing more on technology and globalization and they are ensuring that the company can cope with the emerging challenges.Customer Relations: Customers are the major driving force in every business. To maintain the customer base, the managers need to focus on customer relations as the organization's design process should be centered around their needs. This will help the managers in creating a company that provides excellent customer service to its customers.Technical Knowledge: The success of an organization depends on the technical knowledge of its managers. Managers need to have knowledge about new and emerging technologies so that they can use them to enhance the organization's capabilities. In addition, managers need to know how to apply this technical knowledge to improve the organization's structure and operations.Flexibility: Flexibility is a crucial component in the organization's design process. The managers need to design the organization that is flexible enough to adapt to new changes and technologies. This will help the managers in keeping up with the rapidly changing business environment.Employee's Well-being: The well-being of employees is also a significant issue in the organization's design process. The managers need to design the organization in a way that the employees can work efficiently, and their personal needs are also met. This will help in improving the employee's productivity and motivation level and ensure their loyalty to the organization.

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What type of communication takes place when announcements in offices are made through public announcement systems?

A.
interpersonal communication
B.
written communication
C.
mass communication
D.
public communication
E.
intrapersonal communication

Answers

A or D



process of elimination..

B. (it’s verbal communication, not written)
C. (i highly doubt this is a possible answer.....but you are always willing to test that out for yourself)
E. (interpersonal is a conversation with oneself or “within a person”)

so now you’re left with A or D

Answer:

mass communication

Explanation:

I asked the teacher, she looked at the answer key and said

Write an elevator pitch for someone that will start their own beauty salon/barber shop

Answers

An effective technique to introduce your company's goals and pique interest in your goods or services is through an elevator pitch. A compelling pitch will draw in potential.

Product: What does that mean?

The object being sold is referred to as a product. A service or even an object both qualify as products. It might take on a physical, virtual, or cyber form. Every product has a cost associated with it, and each one has a price.

Is a remedy a thing?

The easiest way to distinguish between a product and a solution is to say that a product is what you have made and what it is capable of. A business outcome who offers your clients quantifiable value is a solution.

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þne day, on his way back from selling his blood, Paul fell asleep and crashed his car into a light
pole. The car was repairable but the charges for parts and labor totalled more than $4,000.
Should he have to pay sales tax on this whole amount? Why or why not?

Answers

Lol I’m Juan Garcia lol

Which is a commodity someone might invest in?
a) a mutual fund
b) natural resources
c) government bonds
d) a certificate of deposit​

Answers

Answer:

b) natural resources

Explanation:

Natural resources refer to valuable materials found beneath, above, and on the earth's surface. They are naturally occurring, meaning no human effort is required in producing them. Natural resources make a good source of wealth. Examples of natural resources are land, mineral, oils and gas, forests, water, sunlight, wind, and many others.

Anyone with access to natural resources can invest to make them marketable products. Extraction of oil and refining is an example of investing in natural resources. Processing of trees to wood, use of solar to generate power are other examples.

Answer B) natural resources.

Explanation:

Hope this helps! :)

Write a 1-page memo to the CEO. Include each chart (3) and a paragraph per chart. Each paragraph should explain the story of each visualization and explain why visualizations are important.

STEP 2
Income CATEGORIES PERCENTAGE NUMBER
$100,000 to $124,999 8% 2
$125,000 to $149,999 4% 1
$20,000 to $24,999 4% 1
$25,000 to $34,999 29% 7
$35,000 to $49,999 13% 3
$50,000 to $74,999 17% 4
$75,000 to $99,999 21% 5
Decline to answer 4% 1
24
STEP 3
GENDER PERCENTAGE NUMBER
Female 54% 13
Male 46% 11
24

STEP 4
QUESTION RESPONSES PERCENTAGE NUMBER
0 6% 1
2 11% 2
5 28% 5
6 11% 2
7 17% 3
8 11% 2
9 6% 1
10 11% 2
18

Answers

Answer:

[Your Name]

[Your Position]

[Date]

Subject: Insights from our Survey - A Window into the Lives of our Valued Customers

Dear [CEO's Name],

I hope this message finds you well. I wanted to take a moment to share some fascinating insights from the recent survey we conducted among our cherished customer base. To make the data more relatable and easier to grasp, I have transformed the findings into a series of engaging visualizations. These visuals not only bring the data to life but also allow us to truly connect with our customers on a human level. Let's dive into the story behind each visualization and explore why these visual representations are crucial in understanding our customers.

Chart 1: Income Categories - Reflecting the Lives of our Customers

This insightful chart provides a glimpse into the diverse income categories of our survey respondents. As you observe the bars rise and fall, you can visualize the financial landscapes our customers navigate. From the bustling middle-income group, representing 29% of respondents, to the resilient individuals in the $75,000 to $99,999 range, accounting for 21% of participants, we gain an intimate understanding of the financial tapestry that influences their decisions.

By presenting this information in such a humanized manner, we can empathize with the varying needs and aspirations of our customers. This visualization guides us in tailoring our products and services to better address the unique challenges and aspirations of each income segment.

Chart 2: Gender Distribution - Celebrating Diversity and Inclusion

This delightful pie chart celebrates the diversity among our survey participants by highlighting their gender identities. As you glance at the vibrant slices, you witness the vibrant mosaic of our customer base. With 54% of respondents identifying as female and 46% as male, we recognize the importance of inclusivity and strive to ensure our products and services cater to the needs and desires of all genders.

Visualizations like this one allow us to see the human faces behind the data. It reminds us to embrace diversity and equality in our business operations, ensuring that every customer feels heard and valued.

Chart 3: Question Responses - Unveiling Our Customers' Voices

Within this insightful bar chart, we uncover the authentic voices of our customers through their responses to a specific question. The bars rise and fall, revealing the choices they made and their preferences. The most popular response, "5," chosen by 28% of participants, demonstrates the collective sentiment that echoes among our customers. As we observe the varying heights of each bar, we gain a deeper understanding of their thoughts and desires.

Visualizations like this empower us to hear our customers' voices loud and clear. By listening attentively to their responses, we can make informed decisions that resonate with their needs, aspirations, and desires.

In summary, these captivating visualizations humanize our survey data, enabling us to truly connect with our customers and gain invaluable insights. By considering the stories behind each chart, we ensure that our strategies, products, and services align with their lived experiences. Together, we can build lasting relationships, foster inclusivity, and deliver the exceptional experiences our customers deserve.

Thank you for your time and attention. Should you have any questions or require further information, please don't hesitate to reach out.

Warm regards,

[Your Name]

[Your Position]

Explanation:


4. Gardening, Inc., borrowed $94,500 at 11.65 percent ordinary interest for 15 days:
What is the maturity value?

Answers

Answer:

$ 94952.434

Explanation:

94500 x 11.65% divide that by 365 days (1 year) ---A

Multiply that ans. (A) by 15 days ( according to question)

Mr. Khalis has been employed as an account manager at Kyasara Sdn Bhd since 2 January 2012. On 1 October 2020, Kyasara Sdn Bhd decided to merge with another company named Maxell Sdn Bhd. As a consequence from that merger, the top management of Kyasara Sdn Bhd had terminated many employees including Mr. Khalis who was terminated on 30 November 2020. The company paid him a gratuity of RM280,000 in appreciation of his service. In addition, Mr. Khalis received RM110,000 as compensation for loss of employment and he withdrew RM140,000 from an unapproved fund whereby 60% of the fund was contributed by Kyasara Sdn Bhd. His remuneration and benefits received until 30 November 2020 are as follows:
1. Monthly salary of RM8,010 (after deducting employee’s EPF contribution of 11%).
2. BonuspaidinJune2020amountedtoRM10,000.
3. A monthly entertainment allowance of RM1,800, but he only spent 80% to
entertain company’s clients.
4. A monthly petrol allowance for official duties of RM480 and parking fees
allowance of RM300.
5. TraditionalmedicaltreatmentatanapprovedhospitalcostingRM650waspaid
by the company.
6. Mr. Khalis was awarded the performance incentive of RM2,500 for the year of
assessment 2018, which was paid on 31 October 2020. This incentive was
given due to his excellent service performance for the year of assessment 2018.
7. A new car costing RM250,000 with a driver were provided by the company
throughout his service.
8. A fully furnished condominium with a rental value of RM2,500 per month
(including furniture of RM800 per month) was provided until 30 November 2020.
9. A reimbursement of RM600 per month was made to pay for the salary of a
servant employed by Mr. Khalis.
10.The company paid for Mr. Khalis’s annual corporate membership fees of
RM2,500 to Kota Kemuning Golf Centre.
11.In January 2020, the company paid RM18,000 for his family’s vacation to Las
Vegas. The expenses inclusive of air tickets, accommodations and meals which were RM8,000, RM6,000 and RM4,000 respectively.

Required:
Compute the statutory employment income of Mr. Khalis for the year of assessment

Answers

44849q91 24439 99919029383737÷12838281881847747

(5 points)
Willie's Hot Dogs had sales last year of $250,300 and a guest count of 76,079.
Sales this year were $280,750 with a guest count of 83,556.
What was Willie's guest count percentage variance?

Answers

Willie's guest count percentage variance is 9.82%.

How to calculate guest count percentage

To calculate the guest count percentage variance

Use the following formula:

Guest count percentage variance = [(current year guest count - prior year guest count) / prior year guest count] x 100%

Guest count percentage variance = [(83,556 - 76,079) / 76,079] x 100%

Guest count percentage variance = (7,477 / 76,079) x 100%

Guest count percentage variance = 0.0982 x 100%

Guest count percentage variance = 9.82%

Therefore, Willie's guest count percentage variance is 9.82%.

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what is the minimum wage for SA

Answers

the new National Minimum Wage for South Africa has been made public by the Department of Employment and Labour. Starting on March 1st, 2023, the current minimum wage of R23,19 per hour will increase to R25,42 per hour (an increase of around 9,6%).

The minimal amount of compensation that an employer is compelled to pay wage earners for the job completed during a particular period, which cannot be reduced by a collective agreement or an individual contract, is referred to as the "minimum wage."The South African government may impose penalties on employers who fail to pay the minimum wage. If a defined weekly wage is used, the monthly wage is multiplied by 4.33. If an hourly rate is specified, it is computed as 4.33 times the weekly average.

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How will I apply my management skills in my future career

Answers

Management skills in your future career Effective communication, Leadership skills, Planning and prioritizing, and Problem-solving skills.

Management skills are critical in any profession. These abilities assist you in maintaining control of the operation and ensure that all personnel are performing at their best. Having efficient management skills is essential for a successful career.

Here are some ways that you can use management skills in your future career:

Effective communication: Effective communication is one of the most important abilities in management. This entails not only conveying your point of view to others but also actively listening to other's viewpoints. In your future job, you will need to interact with a variety of individuals from different backgrounds and cultures, and your communication skills will assist you in effectively conveying the message.

Leadership skills: Leadership is an essential element of management. You must possess the necessary abilities to lead your team and effectively manage them. When you lead by example, your team will be motivated to perform at their best and follow your lead.

Planning and prioritizing: Tasks and workloads are critical components of any profession. You must organize, prioritize, and manage your work effectively to be successful in your future career. Planning your work will ensure that you meet deadlines and deliver high-quality work. These skills will help you manage your time effectively and handle any challenges that may arise.

Problem-solving skills: Management skills can be effectively employed to solve problems that arise in your profession. These abilities can assist you in resolving any conflicts and making difficult decisions. You must have the ability to assess the situation and find a solution that works for everyone involved. These abilities will assist you in being successful in your future career.

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Why are developing countries experiensing rapid population growth while developed countries are growing slowly or not at all?​

Answers

Answer:

Population growth in developing countries will be greater due to lack of education for girls and women, and the lack of information and access to birth control.

Carry learning!

Study hard!

Brainliest please!

Thank you

Self-disclosure is considered a major theme of interpersonal relations because

Answers

It is important for the other person to get an idea of who you are, and opening yourself up to other people can allow the person to get an idea of how you will react to certain situations. it can allow people to be more honest and comfortable around you, and it can help them see if they have similar interests as you/if you would be compatible together.

Partly as a response to concerns expressed by environmentally conscious consumers, Unilever has introduced its “sustainable Living Brands” of “greener” products. Through product development, sourcing through a sustainability lens and manufacturing efficiencies, opportunities for innovation have opened up for Unilever.

The ‘greener’ product is an example of Unilever’s corporate level strategy for _______ growth.

Select one:

a.
internal


b.
external


c.
responsive


d.
innovative

Answers

The ‘greener’ product is an example of Unilever’s corporate-level strategy for innovative growth. Thus, option D is correct.

Unilever has launched its "sustainable Living Brands" of "greener" products, in part in response to concerns voiced by environmentally aware consumers.

Prospects for innovation have arisen for Unilever through product creation, sustainable sourcing, and production efficiency. The 'greener' product is an illustration of Unilever's corporate-level approach to creative expansion. Therefore, it can be concluded that option D is correct.

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an industrial oven and fryer is an example of which factor of production?
a. land
b. labor
c. capital
d. more than one type is correct​

Answers

Answer:

I believe this is C. capital

Answer:

C

Explanation:

Capital

Definition of meeting

Answers

Interaction with someone is called meeting..

according to me yes

Question 10 of 10
Which scenario describes the highest level of productivity?
A. Produeing 100 shoes using resources that cost $100
B. Producing 50 shoes using resources that cost $25
c. Producing 50 shoes using resources that cost $50
D. Producing 25 shoes using resources that cost $50

SUBMIT

Answers

Answer:

producing 50 shoes using resources that cost $25

You just acquired 1,000 from the lottery.
You decide to invest in stocks with it (like a smart person should). You figure on buying apple stock which costs $100 a share. How many shares would you own of apple if you bought $1,000 worth of apple stock at $100 a share.

Answers

If you bought $1,000 worth of Apple stock at $100 per share, you would own 10 shares of Apple stock.

To determine the number of shares you would own of Apple stock if you bought $1,000 worth of stock at $100 per share, you need to divide the total investment amount by the price per share.

Number of shares = Total investment amount / Price per share

In this case, the total investment amount is $1,000 and the price per share is $100.

Number of shares = $1,000 / $100

= 10 shares

Therefore, if you bought $1,000 worth of Apple stock at $100 per share, you would own 10 shares of Apple stock.

It's important to note that stock prices fluctuate, so the actual number of shares you would own may vary depending on the current market price at the time of purchase. Additionally, transaction fees and other costs associated with buying stocks should also be taken into consideration.

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. Specifically what recruiting sources would you use to attract participants to the Techtonic Academy, and apprenticeship programs?

Answers

The use of current employees as brand ambassadors can be the way that one would  use to attract participants to the Techtonic Academy, and apprenticeship programs.

What is meant by recruiting sources?

This is the term that is used to refer to the way that a business would be able to get other workers to be on board in that particular firm. One of the ways that this is done is through the use of the people that currently work in the given establishment.

Hence the The use of current employees as brand ambassadors can be the way that one would  use to attract participants to the Techtonic Academy, and apprenticeship programs.

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operations management course concept​

Answers

The operations management course concept refers to the systematic design, direction, and control of the processes that transform inputs such as raw materials, energy, and labor into outputs such as goods and services that satisfy customer needs.

This management process includes inventory management, scheduling, supply chain management, quality control, and more. The goal of operations management is to create efficient processes that maximize productivity while minimizing costs.

Students taking an operations management course learn about these concepts and how to apply them to real-world situations in various industries. They also study topics like process design, project management, lean principles, and decision-making models.

The course is usually offered as a part of business administration, engineering, or industrial technology programs. Graduates of the course may go on to careers as operations managers, logistics managers, supply chain analysts, process improvement specialists, or manufacturing engineers, depending on their areas of focus and interests.

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Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy:Direct materials: 6 microns per toy at $1.50 per micron Direct labor: 1.3 hours per toy at $21 per hourDuring July, the company produced 3,000 Maze toys. Production data for the month on the toy follow:Direct materials: 25,000 microns were purchased at a cost of $1.48 per micron. 5,000 of these microns were still in inventory at the end of the month.Direct labor: 4,000 direct labor-hours were worked at a cost of $88,000.Required: 1. Compute the following variances for July:a. The materials price and quantity variances.b. The labor rate and efficiency variances.

Answers

Answer:

1. a. The materials price and quantity variances

Material price variance: Standard cost per micron is $1.50 and actual cost per micron is $1.48. So, price variance is 1.48 - 1.5 = $(0.02) per micron

Quantity variance: Based on standard bill of material, Dawson Toys need 3,000 x 6 = 18,000 microns to produce 3,000 Maze toys. Actual consumption volume is 25,000 - 5,000 = 20,000 microns. So, quantity variance is 20,000 - 18,000 = 2,000 microns.

1. b. The labor rate and efficiency variances

Actual labor rate  = Actual labor cost / Actual hour = 88,000/4,000 = $22 per hour.

Efficiency variance = Actual labor rate - Standard labor rate = 22 - 21 = $1 per hour.

2. Prepare a brief explanation of the possible causes of each variance.

Direct material cost variance: Total actual material cost is 20,000 x 1.48 = $29,600, higher than standard material cost of 18,000 x 1.5 = $27,000. This is mainly due to higher production waste as compared to standards.

Direct labor cost variance: Total actual labor cost is $88,000, higher than standard labor cost of 4,000 x 21 = $84,000. This is mainly due to lower labor rate per hour than expected.

Explanation:

According to Goldratt: Group of answer choices Two activities scheduled to be carried out sequentially and using the same scarce resource benefit from having the same project manager. Two activities scheduled to be carried out in parallel and using the same scarce resource are independent. Two activities scheduled to be carried out in parallel and using the same scarce resource are not independent. Two activities scheduled to be carried out sequentially and using the same scarce resource require different project managers.

Answers

Answer:

Two activities scheduled to be carried out in parallel and using the same scarce resource are independent.

Explanation:

Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service. Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.

The fundamentals of Project Management includes;

1. Project initiation

2. Project planning

3. Project execution

4. Monitoring and controlling of the project

5. Adapting and closure of project.

Eliyahu Moshe Goldratt is a business guru from Israel and he's famously known for his works in business and economics such as Optimized Production Technique, Drum-Buffer-Rope, The Theory of Constraints, The Thinking Processes, Critical Chain Project Management, etc.

According to Goldratt, two activities scheduled to be carried out in parallel and using the same scarce resource are independent.

The City of Houghton enacted an ordinance that forbids religious groups from distributing religious materials within the city limits of Houghton unless the distributor is granted a permit. Other types of materials can be distributed without a permit. What concerns do you have about the constitutionality of this ordinance?

Answers

The concerns that have about the constitutionality of this ordinance are Freedom of Religion, Content-Based Restrictions, Prior Restraint, Equal Protection and Unfettered Discretion.

Here are a few major concerns:

Religious Freedom: The First Amendment to the United States Constitution provides religious freedom, which includes the right to practise and express one's religious views. Content-Based limitation: By treating religious materials differently from other types of materials, the ordinance appears to impose a content-based limitation on communication. Prior constraint: Requiring religious organisations to seek a licence before disseminating religious materials is a type of prior constraint on speech. Equal Protection: If the ordinance treats religious groups differently than other groups or items, it may raise questions regarding legal equality. Unrestricted Discretion: If local officials have unrestricted discretion in choosing who gets a permit, there is a possibility of viewpoint discrimination or bias.

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How modern methods of transport and communication have brought us all closer?

Answers

The modern methods of transport and communication have brought us all closer by decreasing the time duration of our interaction with each other.

What is communication?

Communication refers to the exchange of the information, ideas, thoughts and feeling from one person. It shares the important information or facts which the other individuals.

The new methods of communication i.e. through the social media, the people around the corners of the world can talk to others at anytime and reach to the specific location in the less time as it took earlier.

Therefore, it can be concluded that By reducing the amount of time we spend interacting with each other, contemporary transportation and communication technologies have honed our interpersonal relationships.

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Whitman has a direct labor standard of 2 hours per unit of output. Each employee has a standard wage rate of $26.50 per hour. During July, Whitman paid $120,790 to employees for 4,700 hours worked. 2,600 units were produced during July. What is the flexible budget amount for direct labor

Answers

Answer:

$137,800

Explanation:

A flexible budget uses the standard hour and costs adjusted to Actual level of output

thus

Flexible budget amount for direct labor = 2 x 2,600 units x $26.50 = $137,800

Kabete limited is a one of the seed companies operating in Kenya. The company develops, produces, and
distributes high quality seeds that guarantee high performance for the farmers located in dry lands and
highlands part of the country. Last month, the company had a major breakthrough in the development of
a resistant and high quality seed of sorghum suitable for growing conditions of Kerio Valley where Kenya
Development Authority (KVDA) has commissioned irrigation schemes on thousands of hectares of
arable land. In order to process and deliver the seed, Kabete limited has the option either hiring a
processing plant from Smart Seed limited or acquiring it in order to meet the demand of the already
identified market. The following information for the two options has been availed by the capital
budgeting team.
OPTION ONE: HIRING PROCESSING PLANT
(i) Smart Seed limited will charge $ 250 per hour for a maximum of ten hours a day
(ii) The charges per hour beyond ten hour processing time is $280
(iii)Smart Limited estimates that inflation will go up each year by five per cent. As a result, annual
charges will be adjusted upwards to accommodate for inflation.
(iv)Kabete limited estimates that it requires 2,000 hours of the hired plant at most for 80 days a year.
OPTION TWO: SET UP THE PLANT
(i) Acquisition cost is estimated to be $1.5 Million
(ii) Preliminary expenses is estimated to be $ 0.2 Million
(iii)Excess capacity is anticipated which the company plans to rent out for eight hours a day for $ 280
per hour, 250 days in a year
(iv)Installation Costs estimated to be $ 75,000
(v) Initial amount of required of working capital estimated at $ 40,000
(vi)Maintenance cost per year is estimated at $ 30,000
(vii) Energy Consumption cost per year is estimated at $ 50,0000
(viii) Incremental overheads cost per year is estimated at $ 140,000
(ix)Financing costs per year estimated at $ 20,000
(x) Useful Life of the machine = five years
(xi)Estimated salvage value at the end year five is $ 20,000
(xii) No Depreciation charge in Year five
(xiii) Corporate tax rate = 30 %
(xiv) Risk adjusted cost of capital is estimated at 12 %
(xv) Depreciation rate is given 25 % on a reducing balance basis
(xvi) The plant can be rented out
Questions:
(a) What is the intuitive explanation of the hurdle rate of 12 %
(b) Compute total savings in hiring charges if the company sets up the plant
(c) Compute rental revenue from renting out the processing plant
(d) Using Discounted cash flow techniques of NPV and BC-R , compute the figure of merit and decision
criterion
Page 2 of 6

Answers

(a) The hurdle rate of 12% is the minimum rate of return that an investment project must earn to be considered viable.

b)  Total savings in hiring charges if the company sets up the plant is $38,385,000.

c) Rental revenue from renting out the processing plant is $2,800,000.

d)  The figure of merit can be computed using the discounted cash flow techniques of NPV and BC-R.

a) It represents the opportunity cost of investing in the project, which is the return that could be earned by investing in an alternative project with similar risk. Therefore, any investment project must be evaluated against this hurdle rate to determine if it is worth pursuing.

(b) Total savings in hiring charges if the company sets up the plant can be calculated as follows:

Total hours required = 2,000 hours x 80 days = 160,000 hours

Maximum hours per day = 10 hours

Total days required = 160,000 hours / 10 hours per day = 16,000 days

Hiring cost for 16,000 days = $250 x 10 hours x 16,000 days = $40,000,000

Cost of setting up the plant = $1.5 million + $0.2 million + $75,000 + $40,000 = $1,615,000

Total savings in hiring charges = $40,000,000 - $1,615,000 = $38,385,000

(c) Rental revenue from renting out the processing plant can be calculated as follows:

Rental revenue per year = $280 x 8 hours x 250 days = $560,000

Total rental revenue for five years = $560,000 x 5 = $2,800,000

(d) The net present value (NPV) method calculates the present value of all expected cash inflows and outflows of a project, using a discount rate to adjust for the time value of money. The benefit-cost ratio (BC-R) method measures the ratio of the present value of expected cash inflows to the present value of expected cash outflows.

NPV can be calculated as follows:

Year 0:

Initial investment = -$1,615,000

Year 1-4:

Cash inflows = Rental revenue + Tax savings on depreciation

= $560,000 x (1 - 0.3) + ($1,615,000 x 0.25 x (1 - 0.3))

= $452,600

Cash outflows = Operating expenses + Financing costs

= $30,000 + $50,000 + $140,000 + $20,000

= $240,000

Discount factor at 12% = 1 / (1 + 0.12)^n, where n is the year

NPV = Sum of (Cash inflows - Cash outflows) x Discount factor

= -$1,615,000 + ($452,600 x 0.893) + ($452,600 x 0.797) + ($452,600 x 0.712) + ($452,600 x 0.636)

= $366,420

BC-R can be calculated as follows:

Present value of cash inflows = $452,600 x (1 / (1 + 0.12)^1) + $452,600 x (1 / (1 + 0.12)^2) + $452,600 x (1 / (1 + 0.12)^3) + $452,600 x (1 / (1 + 0.12)^4)

= $1,384,511

Present value of cash outflows = $1,615,000

BC-R = Present value of cash inflows / Present value of cash outflows

= $1,384,511 / $1,615,000

= 0.857

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Advantages
OF quantitative approach of
Management

Answers

Answer:

Quantitative approach of Management refers to a managerial technique that relied on rigid calculations (such as statistics or computer simulations) in order to improve the decision making.

Here are the advantages:

- The decision making process occurred a lot quicker since the managers can relied on computers to analyze all the relevant factors

- Cost benefit analysis can be more accurate since it completely disregard the personal biases of the manager.

- Results between each decisions implementation can be measures easily since it's displayed on numerical value.

Which of the following is an example of employee advocacy?
A. Asking a manager to hire the relative of an employee
B. Negotiating with management for fair pay and benefits
c. Offering personal advice to an employee about a family matter

Answers

B. negotiating w management

advocacy is speaking up for yourself

the employee is advocating for themselves because they brought the issue of fair pay and benefits up with management and are working to solve the problem.

Answer:

Negotiating with management for fair pay and benefits

Explanation:

A p e x

Marco, Jaclyn, and Carrie formed Daxing Partnership (a calendar-year-end entity) by contributing cash 10 years ago. Each partner owns an equal interest in the partnership and has an outside basis in his/her partnership interest of $104,000. On January 1 of the current year, Marco sells his partnership interest to Ryan for a cash payment of $137,000. The partnership has the following assets and no liabilities as of the sale date:
Tax Basis FMV
Cash $ 18,000 $ 18,000
Accounts receivable 0 12,000
Inventory 69,000 81,000
Equipment 180,000 225,000
Stock investment 45,000 75,000
Totals $ 312,000 $ 411,000
The equipment was purchased for $240,000, and the partnership has taken $60,000 of depreciation. The stock was purchased seven years ago.
4.
value:
1.00 points
Required information
a. What are the hot assets [§751(a)] for this sale? (Select all that apply.)
Accounts receivable
Inventory
Stock investment
Potential depreciation recapture in the equipment
References
eBook & Resources
Difficulty: 2 MediumLearning Objective: 21-01 Determine the tax consequences to the buyer and seller of the disposition of a partnership interest, including the amount and character of gain or loss recognized.
5.
value:
1.00 points
Required information
b. What is Marco’s gain or loss on the sale of his partnership interest?
References
eBook & Resources
ProblemDifficulty: 2 MediumLearning Objective: 21-01 Determine the tax consequences to the buyer and seller of the disposition of a partnership interest, including the amount and character of gain or loss recognized.
Check my work
6.
value:
1.00 points
Required information
c. What is the character of Marco’s gain or loss?
$23,000 ordinary income and $10,000 capital gain
$10,000 ordinary income and $23,000 capital gain
$33,000 ordinary income
$33,000 capital gain
None of these
References
eBook & Resources
Difficulty: 2 MediumLearning Objective: 21-01 Determine the tax consequences to the buyer and seller of the disposition of a partnership interest, including the amount and character of gain or loss recognized.
Check my work
7.
value:
1.00 points
Required information
d. What are Ryan’s inside and outside bases in the partnership on the date of the sale?

Answers

Answer:

I have no idea

Explanation:

I apologize

a) The hot assets according to [§751(a)] for this sale are:

a. Accounts receivableb. Inventoryd. Potential depreciation recapture in the equipment.

b) Marco’s gain or loss on the sale of his partnership interest is $33,000 ($137,000 - $104,000).

c) The character of Marco’s gain or loss is d. $33,000 capital gain.

d) Ryan’s inside and outside bases in the partnership on the date of the sale are $137,000 ($411,000/3).

What are hot assets in a partnership?

Hot assets refer to these assets: "unrealized receivables" and "inventory items," which generate ordinary business income when sold.

The hot assets also include, in this instance, the "unrealized depreciation recapture" in the equipment of the partnership.

Data and Calculations:

                                 Tax Basis      FMV

Cash                         $ 18,000   $ 18,000

Accounts receivable            0      12,000

Inventory                    69,000      81,000

Equipment                180,000   225,000

Stock investment      45,000      75,000

Totals                    $ 312,000  $ 411,000

Question Completion:

The equipment was purchased for $240,000, and the partnership has taken $60,000 of depreciation. The stock was purchased seven years ago.

a. What are the hot assets [§751(a)] for this sale? (Select all that apply.)

a. Accounts receivable

b. Inventory

c. Stock investment

d. Potential depreciation recapture in the equipment

b. What is Marco’s gain or loss on the sale of his partnership interest?

c. What is the character of Marco’s gain or loss?

a. $23,000 ordinary income and $10,000 capital gain

b. $10,000 ordinary income and $23,000 capital gain

c. $33,000 ordinary income

d. $33,000 capital gain

e. None of these

d. What are Ryan’s inside and outside bases in the partnership on the date of the sale?

The hot assets according to [§751(a)] for this sale are Accounts receivable, Inventory, and the potential depreciation recapture in the equipment because they generate ordinary business income when sold.

Learn more about partnership interest at https://brainly.com/question/23287300

Write a short message/email/memo based on the following case scenario - As head of the occupational health and safety committee at your workplace, you are concerned about the practice of stocking employee kitchenettes with free coffee and cookies. Lately, you have begun to notice that stressed out employees routinely skip lunch and instead grab handfuls of cookies to eat at their desks. While you understand the necessity for the quick snacks, you feel that there is room in the budget to provide healthier alternatives to these high-fat, carbohydrate-laden snacks. In fact, your committee voted in favour of this but you feel some employees will resist this and be upset to lose the cookies and coffee. -- Now, write a short message/memo/email to all staff announcing that, effective next month, kitchenettes will be stocked with a selection of fresh fruit, whole-grain snacks, and spring water instead of the usual cookies and coffee. Consider which approach you should use -- direct or indirect -- before you write it.

Answers

Answer:

You know that your not supposed pile your home work on this program? It’s unconstitutional.

Explanation:

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