The first step in the budgeting process is the preparation of the

Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently.

kipiarov [429]

Answer and Explanation:

As per the data given in the question,

1)

Cash flow Amount PV Factor at 10% for 8 annual installments Present Value

Installments $4,000 5.3349 $21,339.60

Down Payment $27,000 1 $27,000

Value of equipment $48,339.60

Refer to the PVIFA factor

2)

Table or calculator function FVAD of $ 1

Future value $570,000

n = 5

i = 7.00%

Divided it by FV factor 6.1533

Annual Deposit $92,633.22

Refer to the FVAD table

3)

Table or calculator function PVAD of $ 1

Payment $137,000

n = 20

i = 10.00%

Multiplied by PV factor 9.36492

Liability $1,282,994.04

Refer to the PVAD table

5 0

3 years ago

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

What types of information could you collect to monitor potential political “trouble spots” around the world?

zlopas [31]

Answer:

The types of information could you collect to monitor potential political “trouble spots” around the world involves having a keen observation of various countries with the following:

1. Communism or Totalitarianism style of governance

2. Low General Standard of Living

3. Few Resource level and control of resources by the few such as Oligarchy

4. High unemployment rate

5. Low Literacy status

6. High Inflation rate

7. Political instability

8. Increased population expansion rate

9. Wide-ranged income unevenness

4 0

3 years ago

Suppose a profit-maximizing monopolist is producing 12001200 units of output and is charging a price of $60.0060.00 per unit.

antiseptic1488 [7]

Answer:

Marginal Cost = $30

Explanation:

Given that

Price = $60

Elasticity of demand = -2

Recall that

MC = P(1 + 1/Ed)

From monopolist pricing rule as a function of elasticity of demand.

Where MC = marginal cost

Ed = elasticity of demand = -2

Thus

MC = 60 (1 + 1/-2)

= 60 (1 + [-0.5])

= 60 ( 1 - 0.5)

= 60 (0.5)

= 30

MC = $30

6 0

3 years ago

Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $344,000 and credit sa

umka21 [38]

Answer:

c. Bad Debt Expense 14,600 Allowance for Doubtful Accounts 14,600.

Explanation:

As for the information provided,

outstanding balance of accounts receivables = $344,000

Also that the uncollectible balance of accounts receivables is estimated = 5% of outstanding balance.

Therefore, balance at year end of allowance for uncollectible shall be = $344,000 $\times$ 5% = $17,200

Provided existing balance of allowance = $2,600

Thus, entry shall be for amounting = $17,200 - $2,600 = $14,600.

5 0

3 years ago