The operating cycle of Homer Boats can be calculated by adding the inventory days to the accounts receivable days and then subtracting the accounts payable days.
The operating cycle represents the time it takes for a company to convert its inventory into cash. In the case of Homer Boats, the inventory days indicate the average number of days it takes for the company to sell its inventory and turn it into accounts receivable. The accounts receivable days indicate the average number of days it takes for the company to collect payment from its customers. Finally, the accounts payable days indicate the average number of days it takes for the company to pay its suppliers.
By adding the inventory days and accounts receivable days and then subtracting the accounts payable days, we get the operating cycle of Homer Boats. This calculation tells us the number of days it takes for the company to complete its operating cycle and convert its inventory into cash.
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The broader view of corporate social responsibility argues that corporations should take into account the needs and interests of all the different groups that it impacts in doing business.
True or False
True.
The concept of corporate social responsibility (CSR) has evolved to encompass the idea that businesses should not only focus on generating profits, but also take into consideration the social, environmental, and economic impacts of their actions.
The broader view of CSR argues that corporations have a responsibility to not only their shareholders, but also to other stakeholders such as employees, customers, suppliers, communities, and the environment. By considering the needs and interests of all these groups, corporations can contribute to sustainable development and create value for society as a whole.
However, implementing CSR is not always easy, as it requires a shift in mindset, culture, and practices within the organization.
As a step-by-step explanation:
1. Corporate social responsibility (CSR) is the idea that businesses should consider their impact on society, the environment, and the economy.
2. The broader view of CSR goes beyond just focusing on shareholders or profit.
3. This view argues that corporations should consider the needs and interests of all stakeholders involved, such as employees, customers, suppliers, and the community.
4. By addressing these broader concerns, corporations can potentially create long-term value and sustainability for both themselves and society as a whole.
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the present value of $800 to be received 11 years from now discounted back to the 12 present at percent is
The present value of $800 to be received 11 years from now discounted back to the present at 12% is approximately $263.43.
To calculate the present value of $800 to be received 11 years from now, we need to use the present value formula:
Present Value = Future Value / (1 + r)^n
Where:
r = discount rate (12% in this case)
n = number of periods (11 years in this case)
Plugging in the values, we get:
Present Value = $800 / (1 + 0.12)^11
Simplifying this equation gives us:
Present Value = $800 / 3.037
Therefore, the present value of $800 to be received 11 years from now discounted back to the present at 12% is approximately $263.43.
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a u.s. investor makes an investment in britain and earns 14% on the investment while the british pound appreciates against the u.s. dollar by 8%. what is the investor's total return?
The investor's total return is the sum of the investment return and the currency exchange rate return. In this case, the investment return is 14%, which means the investor earned 14% on the amount invested. The currency exchange rate return is 8%, which means the British pound appreciated by 8% against the U.S. dollar.
To calculate the total return, we need to add the investment return and the currency exchange rate return. If we assume the investor invested $1,000, the investment return would be $140 (14% of $1,000), and the currency exchange rate return would be $80 (8% of $1,000). Therefore, the investor's total return would be $220 ($140 + $80).
It's important to note that currency fluctuations can have a significant impact on investment returns, especially for international investments. In this case, the investor benefited from both a strong investment return and a favorable currency exchange rate, resulting in a higher total return. However, it's important for investors to consider the potential risks associated with currency fluctuations and diversify their investments accordingly.
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Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0 -$354,000 -$48,000
1 41,000 23,600
2 61,000 21,600
3 61,000 19,100
4 436,000 14,200
Whichever project you choose, if any, you require a 14 percent return on your investment.
a-1 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
a-2 If you apply the payback criterion, which investment will you choose?
b-1 What is the discounted payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b-2 If you apply the discounted payback criterion, which investment will you choose?
c-1 What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
c-2 If you apply the NPV criterion, which investment will you choose?
d-1 What is the IRR for each project? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
d-2 If you apply the IRR criterion, which investment will you choose?
e-1 What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)
e-2 If you apply the profitability index criterion, which investment will you choose?
f. Based on your answers in (a) through (e), which project will you finally choose?
We can conclude that project B is a better investment option as it has higher IRR, discounted payback period, and profitability index. Although project A has a higher NPV, the other criteria suggest that project B is the better choice.
a-1. The payback period for project A is 2.89 years and for project B is 1.73 years.
a-2. If we apply the payback criterion, we will choose project B as its payback period is less than project A.
b-1. The discounted payback period for project A is 4.14 years and for project B is 2.81 years.
b-2. If we apply the discounted payback criterion, we will choose project B as its discounted payback period is less than project A.
c-1. The NPV for project A is $36,301.96 and for project B is $18,798.32.
c-2. If we apply the NPV criterion, we will choose project A as its NPV is higher than project B.
d-1. The IRR for project A is 19.83% and for project B is 33.23%.
d-2. If we apply the IRR criterion, we will choose project B as its IRR is higher than project A.
e-1. The profitability index for project A is 1.10 and for project B is 1.39.
e-2. If we apply the profitability index criterion, we will choose project B as its profitability index is higher than project A.
f. Based on the above analysis, we have different results for each criterion.
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andrew wants to sell throw blankets for the holiday season at a local flea market. andrew purchases the throws for $15, and sells them to his customers for $30. the rental space is fixed fee of $1400 for the season. assume there is no leftover value for unsold units. the payoff, if he orders 180 and demand is 160, is
That Andrew's payoff, if he orders 180 throw blankets and the demand is 160, is $1,400.
1. Calculate the profit per throw blanket: Andrew sells each throw blanket for $30 and purchases them for $15, so his profit per throw is $30 - $15 = $15.2. Determine the number of throw blankets sold: If demand is 160, then he sells 160 throw blankets (assuming he has enough to meet demand).
3. Calculate the total profit from selling throw blankets: Multiply the profit per throw blanket ($15) by the number of throw blankets sold (160). This equals $15 x 160 = $2,400.4. Calculate the payoff: Subtract the fixed fee for the rental space ($1,400) from the total profit from selling throw blankets ($2,400). The payoff is $2,400 - $1,400 = $1,000.
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which of the following is not a decision related to pricing management? question 17 options: determine the financial impact of services offered when prices are dictated. identify the lowest feasible price when prices are negotiated. provide values for investment when we consider whether to invest set the prices on services offered under capitation.
The decision that is not related to pricing management is "provide values for investment when we consider whether to invest set the prices on services offered under capitation." This decision is related to investment management and not pricing management.
Pricing management involves making decisions related to setting prices, determining the financial impact of different pricing strategies, and identifying the lowest feasible price when prices are negotiated. These decisions are aimed at ensuring that the company's pricing strategy is competitive and profitable.
On the other hand, investment management involves making decisions related to investing in different projects and services. This decision is not directly related to pricing management.
In summary, pricing management is focused on setting and managing prices, while investment management is focused on making investment decisions. determine the financial impact of services offered when prices are dictated, identify the lowest feasible price when prices are negotiated, provide values for investment when we consider whether to invest and set the prices on services offered under capitation.
The option that is not a decision related to pricing management is "provide values for investment when we consider whether to invest." This option is more related to investment management and assessing the value of potential investments rather than directly managing the pricing of products or services. The other three options all involve decisions directly related to pricing management, such as determining financial impacts, identifying feasible prices, and setting prices under capitation.
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fixed asset turnover ratio select financial statement data for two recent years for davenport company are as follows: line item description 20y5 20y4 sales $1,703,000 $1,020,000 fixed assets: beginning of year 640,000 560,000 end of year 670,000 640,000 a. determine the fixed asset turnover ratio for 20y4 and 20y5. round your answers to one decimal place.
The fixed asset turnover ratios for 20Y4 and 20Y5 are approximately 1.82 and 2.54, respectively.
The fixed asset turnover ratio indicates how efficiently a company is using its fixed assets to generate revenue. It is calculated by dividing the company's sales by its average fixed assets.
The fixed asset turnover ratio for 20Y4 and 20Y5 for Davenport Company, you can use the following formula:
Fixed Asset Turnover Ratio = Sales / ((Beginning Fixed Assets + Ending Fixed Assets) / 2)
Here are the calculations for 20Y4 and 20Y5:
For 20Y4:
Fixed Asset Turnover Ratio = $1,020,000 / (($560,000 + $640,000) / 2) ≈ 1.82
For 20Y5:
Fixed Asset Turnover Ratio = $1,703,000 / (($640,000 + $670,000) / 2) ≈ 2.54
Therefore, the fixed asset turnover ratios for 20Y4 and 20Y5 are approximately 1.82 and 2.54, respectively.
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The following facts apply to the pension plan of Cullumber Inc. for the year 2025.
Plan assets, Jan 1 2025: $490,400
Projected benefit obligation, Jan 1 2025: 490,400
Settlement rate: 8%
Service cost: 38,500
Contributions (funding): 27,300
Actual and expected return on plan assets:
48,000
Benefits paid to retirees: 32,500
Using this data, compute the pension expense for the year 2025. As part of your solution, prepare a pension worksheet that shows the journal entry for pension expense in 2025 and the year-end balances in the related pension accounts. (Enter all amounts as positive. Pension worksheet attached)
The year-end balances in the related pension accounts would be:
Service cost account: 38,500
Pension liability account: 490,400
Retirement benefits payable account: 490,400.
To compute the pension expense for the year 2025, we can use the following formula:
Pension expense = (Benefits paid to retirees + Service cost + Contributions (funding)) x (Settlement rate x Years of service x Actuarial accrued liability) / (Actuarial value of assets - Actuarial value of liabilities)
First, we need to calculate the actuarial accrued liability, which is the present value of the benefits that have been earned but not yet paid out:
Actuarial accrued liability = (Benefits paid to retirees + Benefits paid to active employees) x (Settlement rate x Years of service)
Next, we can calculate the actuarial value of assets and liabilities:
Actuarial value of assets = (Actuarial value of assets at beginning of year + Actuarial gains) / 2
Actuarial value of liabilities = (Actuarial value of liabilities at beginning of year + Actuarial losses) / 2
Substituting these values into the formula for pension expense, we get:
Pension expense = (32,500 + 38,500 + 27,300) x (8% x 10 years x 490,400) / (490,400 - (32,500 + 38,500 + 27,300) x (8% x 10 years x 490,400))
Pension expense = 1,148,800
Next, we need to prepare a pension worksheet to record the journal entry for pension expense and the year-end balances in the related pension accounts. The journal entry for pension expense would be:
Debit: Pension expense
Credit: Retirement benefits payable.
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accounting generally has the responsibility for question 36 options: expressing the budget in financial terms. enforcing the budget. setting company goals. administration of the budget.
Accounting generally has the responsibility for- b. enforcing the budget.
What does this entail?This means that the accounting department ensures that the budget is being followed by all departments and that any variances are identified and addressed.
They also monitor expenses and revenue to ensure that they are in line with the budgeted amounts. By enforcing the budget, accounting helps the company stay on track financially and ensures that resources are being used effectively. Additionally, accounting may also have a role in expressing the budget in financial terms and in the administration of the budget, but their primary responsibility is enforcing it.
This helps to maintain financial stability and achieve long-term business goals.
Hence, option b. is correct.
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1. It's undeniable that technology has come a long way in the past few decades, which means that we can assume it will make leaps and bounds in the coming decades. Put on your creative thinking cap and imagine what a highly technologically advanced hotel may look like in twenty years. Come up with at least three specific technological advances that you might find in a hotel of the future. (They needn't be real yet. You are predicting the possibilities.) Explain these advances, which part of the hotel's operations they will contribute to, and how they will impact the customer experience or hotel operation.
In the next twenty years, hotels will be highly technologically advanced, providing guests with a unique and seamless experience.
What are some Likely Technology Hotels may Use in Twenty Years Time?Here are three attainable technological advances that may be found in a hotel of the future:
Virtual Reality (VR) and Augmented Reality (AR) - VR and AR electronics will be used to enhance the recipient experience by providing immersive knowledge. Guests will be able to use VR headsets to survey the hotel's amenities, to a degree the spa, workout, and restaurants, before they arrive. AR will be used to supply guests accompanying information about the hotel and allure surroundings, in the way that local attractions and restaurants, by completely pointing their smartphone at a sign or object. This electronics will contribute to the lodging's marketing and customer service movements, providing guests accompanying a unique and personalized happening.Smart Energy Management - Smart thermostats and lighting methods will be used to manage energy devouring in hotel rooms. These methods will automatically adjust the hotness and lighting established guest preferences and ownership, reducing strength waste and costs. This technology will contribute to the lodging's sustainability efforts and functional efficiency, providing guests accompanying a comfortable and environmental experience.Contactless Payments - Contactless fees will be the norm in hotels, admitting guests to finance their stay and other services utilizing their smartphone or wearable device. This electronics will contribute to the hotel's fee and check-in operations, lowering wait times and improving the client experience. With the COVID-19 universal, contactless payments have become more influential than ever, and lodgings will continue to prioritize this electronics to ensure the security and comfort of their guests.Learn more about technology here: https://brainly.com/question/7788080
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TRUE/FALSE. the regional job creation impact of opening a new hotel is an example of an externality
The given statement is true. The regional job creation impact of opening a new hotel can be considered as an example of an externality.
Externality refers to the impact of an economic activity on parties who are not directly involved in it. In this case, the opening of a new hotel can have positive externalities on the local economy, as it can create job opportunities for people in the region. However, the impact is not limited to just the hotel and its immediate employees, but it can have ripple effects on other businesses in the region, such as restaurants, transportation, and tourism-related services. Therefore, the regional job creation impact of a new hotel can be considered an example of a positive externality that benefits the local economy.
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periodic inventory by three methods; cost of goods sold the units of an item available for sale during the year were as follows: jan. 1 inventory 180 units at $108 mar. 10 purchase 224 units at $110 aug. 30 purchase 200 units at $116 dec. 12 purchase 196 units at $120 there are 208 units of the item in the physical inventory at december 31. the periodic inventory system is used. determine the ending inventory cost and the cost of goods sold by three methods
Using the FIFO method, the ending inventory cost is $24,912, and the cost of goods sold (COGS) is $46,088. Using the LIFO method, the ending inventory cost is $22,560, and the COGS is $24,912. Using the average cost method, the ending inventory cost is $23,584, and the COGS is $67,216.
FIFO Method (First-In, First-Out):
Under the FIFO method, it is assumed that the items purchased first are the ones sold first.
Ending Inventory:
The ending inventory consists of the most recently purchased units (December 12) and the remaining units from the August 30 purchase.
Ending inventory cost = (196 units at $120) + (12 units at $116) = $23,520 + $1,392 = $24,912
Cost of Goods Sold (COGS):
The COGS consists of the units sold during the year, which includes the January 1 inventory, March 10 purchase, and part of the August 30 purchase.
COGS = (180 units at $108) + (44 units at $110) + (188 units at $116) = $19,440 + $4,840 + $21,808 = $46,088
LIFO Method (Last-In, First-Out):
Under the LIFO method, it is assumed that the items purchased last are the ones sold first.
Ending Inventory:
The ending inventory consists of the remaining units from the August 30 purchase and the January 1 inventory.
Ending inventory cost = (12 units at $116) + (196 units at $108) = $1,392 + $21,168 = $22,560
Cost of Goods Sold (COGS):
The COGS consists of the units sold during the year, which includes the December 12 purchase and part of the August 30 purchase.
COGS = (196 units at $120) + (12 units at $116) = $23,520 + $1,392 = $24,912
Average Cost Method:
Ending Inventory:
To calculate the ending inventory, we need to determine the weighted average cost per unit first.
Total cost of goods available for sale = (180 units at $108) + (224 units at $110) + (200 units at $116) + (196 units at $120) = $19,440 + $24,640 + $23,200 + $23,520 = $90,800
Total units available for sale = 180 + 224 + 200 + 196 = 800 units
Weighted average cost per unit = Total cost of goods available for sale / Total units available for sale
= $90,800 / 800 units = $113.50 (rounded to the nearest cent)
Ending inventory cost = 208 units (physical inventory at December 31) * $113.50 = $23,584
Cost of Goods Sold (COGS):
COGS = Cost of goods available for sale - Ending inventory cost
= $90,800 - $23,584 = $67,216
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in the engineering field, why is continuing development after a product is released to the public an important step? client companies demand good engineering service. upgraded and improved products advance engineering. the practice prevents competitors from entering the market. continuing development contributes to successful careers.
Continuing development after a product is released to the public is important in the engineering field because upgraded and improved products advance engineering.
By improving products based on feedback from customers and implementing new technologies, engineers can stay competitive and deliver better solutions to clients. This can lead to higher customer satisfaction, repeat business, and a positive reputation for the engineering firm. Additionally, continuing development can also lead to the discovery of new opportunities and markets, which can further advance the field and contribute to successful careers for engineers.
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which type of fund is often priced at a significant discount to net asset value?
Closed-end funds are a type of investment fund that issue a fixed number of shares to the public and then trade on an exchange like stocks. Unlike open-end mutual funds, closed-end funds do not issue or redeem shares on a daily basis.
As a result, the share price of a closed-end fund can deviate significantly from its net asset value (NAV), which is the value of the fund's underlying assets divided by the number of outstanding shares.
The discount or premium of a closed-end fund's market price to its NAV is largely determined by supply and demand factors. If demand for a closed-end fund's shares is high, its market price may rise above its NAV, resulting in a premium. Conversely, if demand is low, its market price may fall below its NAV, resulting in a discount. Closed-end funds that invest in less popular asset classes or have lower liquidity are more likely to trade at a discount to their NAV. Investors who purchase shares of a closed-end fund at a discount can potentially profit if the market price eventually converges to the NAV.
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After finishing a big project, Aaron’s supervisor tells him "You did an excellent job and completed the project exactly as it should have been done." Aaron’s supervisor is helping him feel ______.
skilled
positive
competent
appreciated
Aaron's supervisor is helping him feel appreciated. By acknowledging his excellent job and stating that he completed the project exactly as it should have been done, the supervisor is showing gratitude and recognition for Aaron's hard work and efforts.
This positive feedback can boost Aaron's self-esteem and motivation, making him feel appreciated and valued as an employee. Feeling appreciated can also lead to a more positive attitude towards work, increased job satisfaction, and ultimately better performance in future projects.
Aaron's supervisor is helping him feel appreciated.
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Adjusting entries are divided into five categories: Prepaid Expenses ... Accrued Expenses – an expense that the business has incurred but not yet paid.
Adjusting entries are important accounting entries that are made at the end of an accounting period to ensure that the financial statements accurately reflect the financial position of the business. These entries are divided into five categories: Prepaid Expenses, Unearned Revenue, Accrued Revenue, Accrued Expenses, and Depreciation.
In this case, we are specifically looking at Accrued Expenses. An Accrued Expense is an expense that the business has incurred but has not yet paid. This can include things like salaries and wages, interest on loans, rent, utilities, and other expenses that are owed but not yet paid.
To record an Accrued Expense, the business will make an adjusting entry to record the amount of the expense that has been incurred but not yet paid. This will involve debiting an Expense account and crediting a Liability account, such as Accrued Expenses or Accounts Payable.
In conclusion, adjusting entries are an important part of the accounting process, and Accrued Expenses is one of the five categories of adjusting entries. It is important for businesses to accurately record and report their expenses, including those that have been incurred but not yet paid. By making adjusting entries, businesses can ensure that their financial statements reflect their true financial position.
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growth rates in brazil and other latin american countries have actually been slower since the trade liberalization of the late 1980s than they were during import-substituting industrialization
The growth rates in Brazil and other Latin American countries have indeed been slower since the trade liberalization of the late 1980s than they were during import-substituting industrialization.
This is due to a number of factors, including increased competition from foreign imports, decreased government intervention in the economy, and an emphasis on export-oriented industries.
During the import-substituting industrialization period, many Latin American countries implemented policies that aimed to replace imported goods with domestically produced goods. This led to the growth of local industries and increased economic growth rates. However, as trade liberalization policies were implemented in the late 1980s, many Latin American countries began to open up their economies to foreign competition. This led to increased competition for local industries, decreased government intervention in the economy, and a shift towards export-oriented industries.
Import-substituting industrialization (ISI) was an economic policy adopted by several Latin American countries to promote domestic industries and reduce dependency on imports. During the ISI period, these countries experienced relatively higher growth rates. However, since the trade liberalization of the late 1980s, which aimed at promoting exports and open markets, the growth rates have been slower. This is due to various factors, such as increased competition from foreign goods, fluctuations in global market prices, and dependence on a few primary export products.
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Dollar Cost Averaging is taking a lump sum of money and investing it all at one time.
a. True
b. False
Dollar Cost Averaging isn't true because it involves investing a large sum of plutocrats all at formerly. Option B is that.
Dollar-cost averaging is the practice of investing a destined quantum of plutocrats on a regular base, irrespective of the share price. It's a good way to come more disciplined about investing, be more effective with your investments, and conceivably cut costs as well as your stress position.
When you use bone-cost averaging, you put in the same quantum of plutocrat every time and stopgap to lower your average purchase price as a result. When prices go down or over, you'll formerly be on the request.
Because it has the implicit to lower the average cost of copping shares, the system gets its name. because the price of shares is equally identified with the number of shares that can be bought for a destined sum.
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High-level executives thend to have more of their total compensation in ______ than do lower level employees.
The equity. High-level executives often receive a larger portion of their compensation in equity such as stock options, restricted stock units, and performance shares.
This is because equity-based compensation is often tied to the company's performance and long-term goals, and is seen as a way to align the interests of executives with the interests of shareholders. Additionally, equity-based compensation can provide executives with significant financial incentives to stay with the company and work towards its success. In contrast, lower-level employees may receive a larger portion of their compensation in the form of salary or hourly wages.
By tying a significant portion of their income to the company's performance, executives are incentivized to make decisions that will improve the company's value and share price. Lower-level employees typically receive a larger portion of their compensation in the form of fixed salaries and benefits, as their roles are less directly tied to the overall success of the company.
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Business Law Questions:
Homework assignment for Week 15
Saxon, the president and director of a corporation engaged in owning and operating a chain of restaurants, was advised, on what seemed to be good authority, that a highway was to be constructed through the town of Portland, which would be a most desirable location for a new restaurant. Saxon presented the relevant facts to the board of directors of the corporation and recommended that the corporation build a restaurant in Portland at the location indicated. The board of directors agreed, and the new restaurant was constructed at significant cost. The plans for the highway were changed after the restaurant had been constructed, and the highway was built in a location different from the original plan. The restaurant was a total financial disaster. The shareholders brought an appropriate action against Saxon, charging that his proposal had caused the corporation a substantial loss. What is the result? Please explain.
In this scenario, the shareholders of the corporation have brought an action against Saxon, the president and director of the corporation, for causing the corporation a substantial loss by proposing the construction of a restaurant in a location that turned out to be a financial disaster.
Under the business judgment rule, directors and officers of a corporation are protected from liability for their business decisions if they make those decisions in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and in the best interests of the corporation. If a decision turns out to be a mistake or results in a loss, the courts will not second-guess the decision as long as it was made in accordance with these standards.
In this case, it appears that Saxon made a business decision to recommend the construction of a new restaurant in Portland based on information that seemed to be reliable and in the best interests of the corporation. He presented the relevant facts to the board of directors, who agreed with his proposal and authorized the construction of the restaurant. It was only after the restaurant was built that the plans for the highway were changed, resulting in a financial disaster for the corporation.
Assuming that Saxon acted in good faith, with the care of an ordinarily prudent person in a like position, and in the best interests of the corporation, he would likely be protected by the business judgment rule. The fact that the decision turned out to be a mistake or resulted in a loss does not necessarily mean that Saxon breached his fiduciary duty. The shareholders would have to show that Saxon acted recklessly or negligently, or that he had a conflict of interest that influenced his decision, in order to hold him liable for the corporation's losses.
Therefore, the result of the action brought by the shareholders against Saxon would depend on whether they can prove that he breached his fiduciary duty of care and loyalty to the corporation. If they cannot meet this burden of proof, Saxon would likely be protected by the business judgment rule and not liable for the corporation's losses.
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The scope of a process improvement project team usually involves a local or single department.
True
False
The statement that the scope of a process improvement project team usually involves a local or single department is false.The scope of a process improvement project team is not limited to a local or single department.
In fact, a process improvement project team can involve members from various departments and even different locations of an organization.
The team's primary goal is to identify inefficiencies and areas for improvement in a particular process, which may affect multiple departments and functions. A cross-functional team may provide a more comprehensive view of the process and help to identify solutions that work for all parties involved.
Therefore, the scope of a process improvement project team should be broad enough to include all stakeholders and interested parties.
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purchased 10,000 shares of gem company stock at $24.75 per share.
You purchased 10,000 shares of Gem Company stock at a price of $24.75 per share. This means you have acquired partial ownership in Gem Company by buying its stock. When you buy shares of a company, you become a shareholder, and you are entitled to a portion of the company's profits and assets based on the number of shares you own.
In this case, you bought 10,000 shares, and each share cost $24.75. To calculate the total amount you paid for the shares, you can multiply the number of shares (10,000) by the price per share ($24.75). So, the total investment would be 10,000 x $24.75 = $247,500. This amount represents the initial value of your investment in Gem Company.
As a shareholder, you will now be affected by any changes in the company's performance and stock price. If the stock price increases, the value of your investment will grow, potentially generating a profit for you. Conversely, if the stock price decreases, the value of your investment will decrease, which could result in a loss. It is essential to monitor the performance of your investment and make informed decisions based on market trends and company performance.
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lakeside winery is considering expanding its winemaking operations. the expansion will require new equipment costing $689,000 that would be depreciated on a straight-line basis to zero over the 6-year life of the project. the equipment will have a market value of $188,000 at the end of the project. the project requires $58,000 initially for net working capital, which will be recovered at the end of the project. the operating cash flow will be $154,200 a year. what is the net present value of this project if the relevant discount rate is 12 percent and the tax rate is 21 percent?
The net present value of the project is $127,855.11. Since the NPV is positive, the project is expected to generate a return greater than the required rate of return (12%), and the company should consider undertaking the project.
To calculate the net present value (NPV) of the project, we need to find the present value of the cash inflows and outflows associated with the project, using a discount rate of 12 percent.
First, let's calculate the annual depreciation expense for the equipment;
Annual depreciation = (Cost - Salvage value) / Life
= ($689,000 - $188,000) / 6
= $83,500
Next, let's calculate the annual after-tax cash flow for the project;
Operating cash flow = $154,200
Depreciation tax shield = Depreciation x Tax rate = $83,500 x 0.21 = $17,535
Net cash flow = Operating cash flow + Depreciation tax shield = $154,200 + $17,535 = $171,735
We can now calculate the present value of the cash flows using the following formula;
PV = CF / [tex](1+r)^{t}[/tex]
where PV is present value, CF is cash flow, r is discount rate, and t is time period.
Year 0; Initial investment = -$689,000 - $58,000 = -$747,000
Year 1-6; Net cash flow = $171,735
Year 6; Salvage value = $188,000
Using financial calculator or spreadsheet, we will calculate the present value of each cash flow and sum them up to get the NPV;
NPV = PV of Year 0 cash flow + PV of Year 1-6 cash flows + PV of Year 6 cash flow
NPV = -$747,000/(1+0.12)⁰ + Σ($171,735/(1+0.12[tex])^{t}[/tex]) + $188,000/(1+0.12)⁶
where Σ denotes the sum from t=1 to t=6.
Evaluating the equation, we get;
NPV = -$747,000 + $171,735 x (1 - 1/1.12⁶) / 0.12 + $188,000 / 1.12⁶
NPV = -$747,000 + $794,838.31 + $80,016.80
NPV = $127,855.11
Therefore, the net present value of the project is $127,855.11.
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randy company produces a single product that is sold for $85 per unit. if variable costs per unit are $26 and fixed costs total $47,500, how many units must randy sell in order to earn a profit of $100,000 before tax?
To find out how many units Randy Company must sell to earn a profit of $100,000 before tax, we'll use the following terms: selling price, variable cost, fixed cost, and target profit. Here's a step-by-step explanation:
Step 1: Calculate the contribution margin per unit.
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = $85 - $26 = $59
Step 2: Calculate the target profit amount.
Target profit = $100,000 (given in the question)
Step 3: Calculate the total fixed costs.
Total fixed costs = $47,500 (given in the question)
Step 4: Calculate the number of units to be sold to reach the target profit.
Number of units = (Total fixed costs + Target profit) / Contribution margin per unit
Number of units = ($47,500 + $100,000) / $59
Number of units = $147,500 / $59
Number of units ≈ 2500
Randy Company must sell approximately 2500 units of the product to earn a profit of $100,000 before tax.
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the general ledger of blue highway cleaners at january 1, 2024, includes the following account balances:
The general ledger of Blue Highway Cleaners as of January 1, 2024, shows the account balances of various accounts. These account balances are essential in determining the financial position of the company. The general ledger includes different accounts such as cash, accounts receivable, accounts payable, inventory, and many more. To provide a more specific answer, I will list down three account balances that might be included in the general ledger of Blue Highway Cleaners as of January 1, 2024. These are:
1. Cash - This account shows the amount of money that the company has on hand at the beginning of the year. It is essential to know the cash balance to ensure that the company has enough money to cover its expenses and investments.
2. Accounts Receivable - This account shows the amount of money that customers owe the company. It is important to monitor this account to ensure that customers are paying their bills on time. A high balance in this account may indicate that the company is experiencing cash flow issues.
3. Inventory - This account shows the value of the products that the company has on hand at the beginning of the year. It is important to keep track of this account to ensure that the company has enough inventory to meet customer demand. A low balance in this account may indicate that the company is experiencing supply chain issues.
In conclusion, the general ledger of Blue Highway Cleaners as of January 1, 2024, includes various account balances, including cash, accounts receivable, inventory, and many more. It is essential to monitor these balances to ensure the financial health of the company.
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Please let me know which answer is correct from the choices below: Yardley Co. produces home applianccs and sells them in the United States_ It outsources the production of the appliances to Chinese manufacturer; and the imported appliances are priccd in dollars. Its major competitor for appliances is located in Mexico. Based on this information; Yardley Co. is subject to exposure _ economic bansaction branslation duration'
Yardley Co. is subject to economic exposure. Additionally, the fact that Yardley Co.'s competitor is located in Mexico may also affect its economic exposure, as it may need to adjust prices to remain competitive in the market.
Economic exposure refers to the risk that a company faces due to changes in exchange rates, which can affect the prices of imported or exported goods. In this case, Yardley Co. outsources the production of its appliances to a Chinese manufacturer, which means it is importing products and paying for them in dollars. Any fluctuations in the exchange rate between the US dollar and the Chinese yuan can impact the cost of production, which can ultimately affect the price of Yardley Co.'s products.
Economic exposure, also known as operating exposure, refers to the potential impact of exchange rate fluctuations on a company's future cash flows, operating income, and overall value. Yardley Co. outsources the production of its appliances to a Chinese manufacturer, and its major competitor is located in Mexico. This means that any changes in the exchange rates between the US dollar, the Chinese yuan, and the Mexican peso can affect Yardley Co.'s costs, revenues, and competitiveness in the market.
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what are two disadvantages of employing teleworkers in an organization? (choose two.)
The two disadvantages of employing teleworkers in an organization are Lack of Team Cohesion and Communication Challenges
One significant disadvantage of employing teleworkers is the potential for communication challenges. Communication is the lifeblood of any organization, and when team members are physically separated, it can lead to a breakdown in effective communication.
Another disadvantage of employing teleworkers is the potential lack of team cohesion. When employees work remotely, they may experience reduced opportunities for building relationships, fostering a sense of belonging, and developing a shared organizational culture.
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wheeler company can produce a product that incurs the following costs per unit: direct materials, $10.40; direct labor, $24.40, and overhead, $16.40. an outside supplier has offered to sell the product to wheeler for $46.42. if wheeler buys from the supplier, it will still incur 45% of its overhead cost. compute the net incremental cost or savings of buying.
If Wheeler Company decides to buy the product from the outside supplier, it will incur a cost of $46.42 per unit.
However, it will still incur 45% of its overhead cost, which is $16.40 per unit. Thus, the total cost of buying from the supplier will be $46.42 + $16.40 = $62.82 per unit. On the other hand, if Wheeler Company produces the product in-house, it will incur direct materials cost of $10.40, direct labor cost of $24.40, and overhead cost of $16.40 per unit. Therefore, the total cost of producing the product in-house will be $51.20 per unit. The net incremental cost or savings of buying from the supplier is the difference between the cost of buying and the cost of producing in-house, which is $62.82 - $51.20 = $11.62 per unit. This means that Wheeler Company can save $11.62 per unit by buying from the outside supplier instead of producing the product in-house.
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Which of the following is not a reason for firms to look for logistics and supply chain outsourcing when they want to expand global?
1. Logistics and supply chain outsourcing can provide expertise in global regions where the firm has no expertise
2. Logistics and supply chain outsourcing can provide compliance expertise in global regions where the firm has no expertise
3. Logistics and supply chain outsourcing can provide technology expertise in global regions where the firm has no experience
4. Logistics and supply chain outsourcing can provide marketing expertise in global regions where the firm has no experience
Logistics and supply chain outsourcing cannot provide marketing expertise in global regions where the firm has no experience is not a reason for firms to look for logistics value and supply chain outsourcing when they want to expand global.
Logistics and supply chain outsourcing cannot provide marketing expertise in global regions where the firm has no experience. While outsourcing logistics and supply chain management can help a firm gain expertise in compliance, technology, and global regions where the firm has no experience, it does not directly provide marketing expertise.
However, outsourcing logistics and supply chain management can indirectly contribute to improved marketing efforts, such as by improving product availability and delivery times. Therefore, firms may still consider logistics and supply chain outsourcing as a means to expand globally, but they should not rely on outsourcing as a sole source of marketing expertise. Instead, they should seek out marketing specialists or consultants with experience in global regions to help them develop effective marketing strategies.
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which of the following is a way to reduce a queue by adjusting capacity? multiple choice maximize the amount of work that needs to be done during peak time off-peak discount peak-load pricing minimize the amount of work that needs to be done during peak time
One way to reduce a queue is by adjusting capacity.
Adjusting capacity refers to changing the resources available to handle a process or service. This can involve increasing or decreasing the number of staff or machines used, as well as changing the hours of operation. By adjusting capacity, it is possible to reduce the amount of time customers spend waiting in a queue.
Among the multiple-choice options given, the answer that best aligns with adjusting capacity to reduce a queue is "minimize the amount of work that needs to be done during peak time." By reducing the workload during peak times, the available resources can be better utilized, and customers can be served more efficiently. This can involve spreading out the workload to off-peak times, such as by offering discounts or promotions during slower hours.
Another option that is sometimes used is peak-load pricing. This involves charging higher prices during peak times to discourage customers from coming at those times, which can help to spread out the demand. However, this strategy can be controversial and may not be appropriate for all businesses.
Ultimately, the best way to reduce a queue will depend on the specific circumstances of the business or service. Adjusting capacity can be an effective approach, but it may also require careful planning and analysis to ensure that resources are being used effectively and efficiently.
In conclusion, adjusting capacity is one way to reduce a queue. This can involve minimizing the amount of work that needs to be done during peak times, spreading out demand to off-peak hours, or using peak-load pricing to discourage customers from coming at busy times. However, the best approach will depend on the specific circumstances of the business or service.
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