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3 years ago

(a) A local bookseller is considering expanding store space to increase his capacity for books.

Business

1 answer:

Ksju [112]3 years ago

8 0

The book seller should invest in the extra space.

Explanation:

As per the given data:

rent for the additional space given is $300 per year, the additional profit that will be pulled by adding on the space = $4000 per year, the current rate of interest given is = 12%

In order to calculate about the decision, the present values needs to be calculated first

The present value of the investment = (- $ 3000 plus $ 4000) by 1.121

The present value of the investment = $ 571.43

The present value of the investment is positve, hence the book seller should invest in the extra space.

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The manager of a computer software company wishes to study the number of hours senior executives by type of industry spend at th

miskamm [114]

Answer:

Since the calculated value of F= 5.733 falls in the critical region we reject the null hypothesis and conclude all three means are not equal.

Explanation:

The given data is

Banking Retail Insurance

12 8 10

10 8 8

10 6 6

12 8 8

10 10 10

The results of excel are:

Anova: Single Factor

SUMMARY

Groups Count Sum Average Variance

Column 1 5 54 10.8 1.2

Column 2 5 40 8 2

Column 3 5 42 8.4 2.8

1) Let the null and alternate hypotheses be

H0: u1=u2=u3 i.e all the three means are equal and

Ha: Not all three means are equal

2) The significance level is set at ∝ =0.05

3)The test statistic to use is

F= sb²/ sw²

which has F distribution with v1= k-1 →3-1=2 and v2= n-k →15-3=12 degrees of freedom

After calculations the following table is obtained.

ANOVA

Source SS df MS F P-value F crit

of Variation

B/w Groups 22.93 2 11.467 5.733 0.01788 3.885

Within Groups 24 12 2

Total 46.93 14

4) The critical region is F ≥ F(0.05, 2,12) = 3.885

5) Since the calculated value of F= 5.733 falls in the critical region we reject the null hypothesis and conclude all three means are not equal.

4 0

3 years ago

On January 1, 2016, Parker Company issued bonds with a face value of $62,000, a stated rate of interest of 11 percent, and a fiv

nignag [31]

Answer:

Parker Company

a. Amortization Table

Date Interest Discount

Cash Payment Expense Amortization Carrying Value

January 1, 2016 $57,639

December 31, 2016 $6,820 $7,493 $673 58,312

December 31, 2017 6,820 7,581 761 59,073

December 31, 2018 6,820 7,679 859 59,932

December 31, 2019 6,820 7,791 971 60,903

December 31, 2020 6,820 7,917 1,097 62,000

b. The carrying value that would appear on the 2019 balance sheet is:

= $60,903.

c. The interest expense that would appear on the 2019 income statement is:

= $7,791.

d. The amount of cash outflow for interest that would appear in the operating activities section of the 2019 statement of cash flows is:

= $6,820.

Explanation:

a) Data and Calculations:

Face value of bonds = $62,000

Proceeds from the issue = 57,639

Bonds discount = $4,361

Stated rate of interest = 11% paid annually on December 31

Effective rate of interest = 13%

December 31, 2016:

Interest expense = $7,493 ($57,639 * 13%)

Interest payable = $6,820 ($62,000 * 11%)

Discount amortization $673 ($7,493 - $6,820)

Bond value = $58,312 ($57,639 + $672)

December 31, 2017:

Interest expense = $7,581 ($58,312 * 13%)

Interest payable $6,820 ($62,000 * 11%)

Discount amortization $761 ($7,581 - $6,820)

Bond value = $59,073 ($58,312 + $761)

December 31, 2018:

Interest expense = $7,679 ($59,073 * 13%)

Interest payable $6,820 ($62,000 * 11%)

Discount amortization $859 ($7,679 - $6,820)

Bond value = $59,932 ($59,073 + $859)

December 31, 2019:

Interest expense = $7,791 ($59,932 * 13%)

Interest payable $6,820 ($62,000 * 11%)

Discount amortization $971 ($7,791 - $6,820)

Bond value = $60,903 ($59,932 + $971)

December 31, 2020:

Interest expense = $7,917 ($60,903 * 13%)

Interest payable $6,820 ($62,000 * 11%)

Discount amortization $1,097 ($7,917 - $6,820)

Bond value = $62,000 ($60,903 + $1,097)

3 0

3 years ago

Economists generally agree that increases in the minimum wage increase employment.a. TRUEb. FALSE

andreyandreev [35.5K]

Answer:

b. FALSE

Explanation:

Economists do not have a unanimous consensus that an increase in the minimum wage will cause greater employment opportunities. In fact, the opposite is the case because research shows that when the minimum wage is increased, there is less demand for low-skill workers. Given that these firms would be paying more, they would want to only employ those that have a high-skill set and thus save their organization of some funds. Since businesses are not charity organizations, they must make decisions that will benefit them.

5 0

3 years ago

A(n) ________ has no barriers to trade among member countries, includes a common external trade policy, and allows factors of pr

EleoNora [17]

Answer:

A common market

Explanation:

A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members.

A monetary union has all the features of a common market and participating countries have a common currency.

I hope my answer helps you.

6 0

3 years ago

A managed mutual fund:

Ilia_Sergeevich [38]

Answer:

b) Has a higher expense ratio than an index fund

Explanation:

A mutual fund is a diversified investment tool. The fund is a collection of different types of stocks that form a single investment asset. It is a basket of stock trading as a single asset. Purchasing one unit of a mutual fund is equivalent to purchasing several portions of each stock that make up the mutual fund.

A professional manager manages the mutual fund. He or she carefully selects the stocks that go into the basket forming the mutual fund. The manager charges a professional fee, which is usually a percentage of the investment. Due to this fee, a mutual fund is relatively expensive as compared to an index fund that does not require the input of a manager.

7 0

3 years ago