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pentagon [3]
3 years ago
9

Shawn is creating a business that provides advertising on public restroom stall doors. He is funding the project from his person

al savings of $5,000 and does not expect to use any outside financing. Should he create a business plan?
Business
1 answer:
Cerrena [4.2K]3 years ago
4 0

Answer:

It will be of very great use for him if he creates a business plan even though he does not expect to use any outside financing.

Explanation:

As we know that a Business Plan is a written document that details how a company will achieve its goals. Few good companies last long without one. Business Plan give directions to new companies while the established ones use them to determine new ventures. A business plan should paint a clear picture of the costs and drawbacks that come with each important decision. Operating a business without a plan is like swinging on a trapeze without a net. It might work but the benefits a plan provides are abundant.

Shawn has a chance to test a service even though he is funding the project himself. Shawn also has the opportunity to think through an idea before sinking too much money into it.

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Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. a) Busines
lbvjy [14]

Answer:

D) Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.

Explanation:

The Federal Reserve (FED) can respond to excessive pessimism among consumers and businesses by expanding the money supply and lowering interest rates. To deal with excessive optimism they can do the opposite, they can shrink the money supply and increase the interest rate.

4 0
2 years ago
Stockmaster Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the begi
KonstantinChe [14]

Answer:

Explanation:

Forming

Estimated fixed manufacturing overhead  $27,000

Estimated variable manufacturing overhead ($1.10*5,000)  $5,500

Estimated total manufacturing overhead cost  $32,500

Assembly

Estimated fixed manufacturing overhead  $10,500

Estimated variable manufacturing overhead ($2.80 × 5,000)  14,000

Estimated total manufacturing overhead cost  $24,500

Now we need to add these two numbers ($32,500 + $24,500 = $57,000) in order to identify plantwide predetermined manufacturing overhead rate

Estimated total manufacturing overhead cost  $57,000

Estimated total machine hours  10,000

Predetermined overhead rate  $5.70  [57,000/10,00]

The overhead applied to Job C:

Overhead applied to job C = Predetermined overhead rate x Machine-hours incurred by C

= $5.70 * (3,400 + 2,000)

= $5.70 x (5,400)

= $30,780

Job C’s manufacturing cost:

Direct materials  $11,200

Direct labor cost  $21,900

Manufacturing overhead $30,780

Total manufacturing cost  $63,880

The selling price for Job C:

Total manufacturing cost  $63,880

Markup (40%)  25,552

Selling price  $89,432

 

8 0
3 years ago
Bob and Alice want to remodel their bathroom in 4 years. They estimate the job will cost $35,000. How much must they invest now
geniusboy [140]

Answer:

Bob and Alice want to remodel their bathroom in 4 years. They estimate the job will cost $35,000. How much must they invest now at an annual interest rate of 4% compounded quarterly to achieve their goal?

we need to use the present value formula:

present value = future value / (1 + interest rate)ⁿ = $35,000 / (1 + 1%)¹⁶ = <u>$29,848.74</u>

The Morenos invest $9000 in an account that grows to $11,000 in 4 years. What is the annual interest rate r if interest is compounded

a. Quarterly

$9,000 = $11,000 / (1 + r)¹⁶

(1 + r)¹⁶ = $11,000 / $9,000 = 1.2222

¹⁶√(1 + r) = ¹⁶√1.2222

1 + r = 1.01262

r = 0.01262 = 1.26% ⇒ quarterly interest rate

annual interest rate = 1.26% x 4 = 5.048%

b. Continuously

future value = present value x eᵃⁿ

  • future value = $11,000
  • present value = $9,000
  • e = 2.718
  • a = interest rate ???
  • n = 4 years

$11,000 = $9,000 x 2.718⁴ⁿ

2.718⁴ⁿ = $9,000 / $11,000 = 0.818181818

⁴√2.718⁴ⁿ  =  ⁴√0.818181818

2.718ⁿ = 0.95107

nlog2.718 = log0.95107

n 0.434249452 = -0.021787543

n = -0.021787543 / 0.434249452 = -0.05017, since n must be positive, then

n = 0.05017 = 5.017%

<u>D) a. 5.048%    b. 5.017%</u>

6 0
3 years ago
Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attem
Bezzdna [24]

Answer:

$25,000

Explanation:

The value of inventory at the end of the end of the period will be equal to

Value of inventory = Cost of goods sent less the cost of goods already sold.

<em>Remember the arrangement  is that of agency, hence the goods are not deemed to be sold except the agent has been able to exchange them for revenue in a sales contract with his own buyers.</em>

Also the sales commission would be reported under a separated ledger which will be reported as part of the operating expenses.

Amount of inventory = $105,000 - $80,000

                                  = $25,000

7 0
3 years ago
11. Consider the Ganges Tours, Inc. financial statements below. Calculate the following ratios:a. Current ratio.b. Quick ratio.c
notsponge [240]

Answer:

a. 1.79

b. 0.78

c. 0.30

d. 0.43

Explanation:

a. The Current Ratio checks if the company can cover it's current  Liabilities with it's current assets. The formula is;

Current Ratio = Current Assets / Current Laibilities

= $305,800 / $170,000

= 1.79

b. The Quick Ratio is similar to the Current Ratio but it calculates if a company can cover it's Current Liabilities with it's liquid assets.

Quick Ratio = Current Assets - Inventory / Current Liabilities

= ($305,800 -$173,800) / $170,000

= 0.78

c. The Cash Ratio checks whether the company can pay it's current Liabilities with it's cash or cash equivalent (Treasury Securities, bank account etc) holdings. Formula is;

Cash Ratio = (Cash+Cash Equivalents) / Current Liabilities

= $50,600 / $170,000

= 0.30

d. Debt ratio shows just how much of the company's assets were acquired through the use of Debt Financing. It's formula is;

Debt Ratio = Current Liabilities + Long Term Liabilities / Total Asssets

= $170,000 +$316,000 / $1,131,800

= 0.43

6 0
2 years ago
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