Answer:
a. NAV = 8 per share
b. 250.000 shares
c. 7.95
Explanation:
a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share
b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.
c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.
New NAV = $7,950,000 /1m = $7.95
Answer:
When total expenditures are greater than total production, <u>less</u> is produced than households want to buy, which leads to <u>decrease</u> in inventory, which signals firms that they have <u>under-produced,</u> which causes firms to increase production.
Explanation:
- When total expenditures are greater than total production, then the business will have low production.
- If the production is lower than the customer's demand then it will decrease in inventory.
- If the production is less than the demand of the customer, then in order to fulfill the gap, we need to increase our production.
Answer:
The journal entry to record the contract on November 1, 2018 includes: credit to Accounts Receivable for $162000
Explanation:
Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made. On November 1, 2018, Cullumber Farm had to pay $162,000 in advance to John Deere. John Deere recorded the cash receiving by the entry:
Debit Cash $162,000
Credit Accounts Receivable $162,000
The company did not record revenue because they did not sell the harvester. This was only the advance payment.
Answer:
1. "lack of documentation in the implementation project."
2. "resistance from end users for IS implementation."
Explanation:
Some of the general challenges of implementing change are:
1. Lack of Proper Planning.
2. Low Employee Morale.
3. Lack of Consensus.
4. Adopting New Technology.
5. Failing to Communicate.
6. Resistance
However from the scenario, we see two major challenges of IS implementation which also agrees with the general challenges of change management and implementation.
1. Lack of documentation in the implementation project: The issue of lack of documentation during implementation is in relation to 'lack of proper planning' because such documentation will be invaluable when it comes to training the staff about the change that has been implemented. Lack of implementation documentation will also lead to inability to communicate the progress of the implementation to Staff. In summary implementation documentation are necessary for understanding whatever change(s) will happen as a result of such project.
2. Resistance from end users for IS implementation: This is not a problem peculiar to this scenario but as can be seen from the general problems of implementing organisational change, 'resistance' is a problem.
Such resistance is caused by other factors like 'lack of communication' and 'lack of consensus'. Employees always do resist change because they are already used to the old way of doing things and possibly were not part of the decision to implement an IS.
These challenges can be addressed by staff engagement, staff training on the change and effective communication.
