Answer:
1. 88.16%
2. 88.54%
Explanation:
a. Prepare a forecast for September
Smoothing constant (a) is 0.1
Forecast for August (Ft) is 88%
Actual usage for August (At) is 89.6%
Forecast for September(Ft +1) will therefore be;
Using the formulae
= Ft+a (At-Ft)
= 88% + 0.1(89.6% - 88%)
= 88% + 0.16%
= 88.16%
b. Assuming actual September usage of 92% , prepare a forecast for October usage.
Since we have the following,
Smoothing constant(a) 0.1
Then forecast for September(Ft) is 88.16%
Also, actual usage for September (At) is 92%
Therefore, forecast for October (Ft + 1) will be,
Using the formula
= Ft+a(At - Ft)
= 88.16% + 0.1(92% - 88.16%)
= 88.16% + 0.384%
= 88.54%
Answer:
$20 million
Explanation:
Data provided
Issue of common stock = $42 million
Purchase of treasury stock = $22 million
The computation of net cash flows from financing activities is shown below:-
Net cash flow from financing activities = Issue of common stock - Purchase of treasury stock
= $42 million - $22 million
= $20 million
Therefore for computing the net cash flow from financing activities we simply deduct the purchase of common stock from issue of common stock.
Answer and Explanation:
We will start from the point where the manager has three options over here we see that the payoffs for doing nothing is $110000, $160000 for subcontracting and $120000 for 2 machines bought, in this case subcontracting gives the best outcome of $160000.
Now if we move back on decision tree where two machines are bought and if demand is low then payoff is 0.2 * 80000 + 0.8 * 160000 for high demand = 16000 + 128000 = $144000.
Now if decide to buy only one machine then the payoff are 0.2 * 100000 + 0.8* 160000 (value for subcontracting)
= 20000 + 128000 = $148000
In case of event 1 we can see the benefits can be either $144000 or $148000 calculated above.
Se we see the best outcome is when the manager subcontracts and the benefit is $160000.
Best option is to buy no machines and the expected payoff is $160000.
Answer:
27%
Explanation:
The ski was sold for $7,000 which has a discount of $2,625.
the price before discount is
= $7,000 + $2,625.
=$9,625
the discount as a percentage
=$2,625 / $9,625 x 100
=0.272727 x 100
=27.27%
=27%
Answer:
$13,915,000
Explanation:
Land-cost $1,250,000
Construction cost $12,000,000
Equipment cost(150,000+15,000) $165,000
Inventory $500,000
Total initial investment outlay $13,915,000
Please note that fair value of land is irrelevant as the land was purchased for the outlet being set up and not for any other project.
