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yan [13]
3 years ago
7

Suppose a week after you get this report from your research department, you hear on the news that Colombia and Vietnam are going

to increase money supply to stimulate their economy while the United States is keeping its money supply stable, you would expect that:_______
a. Both projections will be the same since the US is keeping their money supply fixed
b. the 3 month projections for the peso would be smaller while that of the dong will be larger
c. the 3 month projections for the peso would be larger while that of the dong will be smaller
d. the 3 month projections for the peso and dong will be smaller
e. the 3 month projections for the peso and dong will be larger
Business
1 answer:
lora16 [44]3 years ago
3 0

Answer:

e. the 3 month projections for the peso and dong will be larger

Explanation:

this question is about a company that imports coffee from Colombia and Vietnam (along with 3 other countries). The report stated an estimation of the future value of the Colombian peso and Vietnamese dong. But that report is outdated and irrelevant now. Since the central banks of Colombia and Vietnam decide to increase their money supply, while the US money supply remains stable, that will result in a higher depreciation of the peso and dong. I.e. their currencies will be cheaper against the US dollar, so the estimations made before are incorrect now. The previous estimates were:

Vietnam

  • 23,205.35 Dongs per dollar - Today
  • 23,025.00 Dongs per dollar - 3 month projection

Colombia

  • 3,163.75 pesos per dollar - Today
  • 3,001.25 pesos per dollar - 3 month projection

Since the currencies will depreciate more against the US dollar, both estimates must increase, e.g. probably in 3 months $1 will be worth 24,000 dongs or 3,200 pesos.

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To  build your market and contact products so you can your products ready to sell
4 0
3 years ago
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Jim's Espresso expects sales to grow by 10.3 % next year. Using the following statements and the percent of sales​ method, forec
stepladder [879]

Answer:

Jim's Espresso

The forecasted costs will be :___________

a. Costs                = $110,168

b. Depreciation    = $6,575

c. Net Income      = $70,482

d. Cash                = $16,600

e. Accounts receivable  = $2,283

f. Inventory          = $4,511

g.​ Property, plant, and equipment = $11,085

Explanation:

a) Data and Calculations:

Sales growth = 10.3%

Balance Sheet

Assets                                                         Percentage of sales

                                                                   Current      Forecast

Cash and Equivalents              $15,050     0.07357    $16,600

Accounts Receivable                    2070     0.01012         2,283

Inventories                                    4090     0.01999         4,511

Total Current Assets                $21,210      

Property, Plant and Equipment 10,050     0.04913        11,085

Total Assets                             $31,260

Liabilities and Equity:

Accounts Payable                     $1,580

Debt                                             3930

Total Liabilities                         $5,510

Stockholders' Equity               25750

Total Liabilities and Equity   $31,260

Income Statement:              Current      %              Forecast

                                               Year

Sales                                 $204,560      1              $225,630

Costs Except Depreciation (99,880)     0.48827     (110,168)

EBITDA                              $104,680      0.51173

Depreciation                         (5,960)     0.02914        (6,575)

EBIT                                    $98,720      0.48260

Interest Expense (net)              (410)     0.00200

Pretax Income                    $98,310      0.48059

Income Tax                         (34,409)     0.16821

Net Income                        $63,901      0.31238       $70,482

The forecasts are based on sales of the current year and the next year.

5 0
2 years ago
Brent is a full-time exempt employee in Clark County, Indiana. He earns an annual salary of $39,360 and is paid semimonthly. He
serious [3.7K]

Answer:

  • Federal Income tax ⇒ $80
  • FICA ⇒ $125.46
  • State income tax ⇒ $52.97
  • Local deduction - Clark County Income tax ⇒ $29.52

Explanation:

Brent gets paid semi-monthly so his pay per period is:

= 39,360 / (12 months *2)

= $1,640

Based on the table therefore, his federal tax is:

= $80

This figure is based on the intersection between income of $1,640 and 3 withholding allowances.

FICA tax rate is 7.65% so his FICA tax is:

= 1,640 * 7.65%

= $125.46

State income tax = $52.97

Local deduction - Clark County Income tax = $29.52

Total deductions:

= Federal tax + FICA + State income tax + Clark County income tax

= 80 + 125.46 + 52.97 + 29.52

= $287.95

3 0
3 years ago
A project has an initial cost of $18,400 and is expected to produce cash inflows of $7,200, $8,900, and $7,500 over the next thr
garri49 [273]

Answer: 2.91 years

Explanation:

The discounted payback period calculates how long it takes for the cummulative discounted cash flow to equal the amount invested.

Please check the attached image for the table explaining how the answer was gotten.

7 0
3 years ago
A produce distributor uses 783 packing crates a month, which it purchases at a cost of $11 each. The manager has assigned an ann
jeyben [28]

Answer:

Annual Savings will be ;

Ordering Cost = $2,993.88

Holding Cost = $661.78

Explanation:

First Calculate the Economic Order Quantity (EOQ)

EOQ = √ 2 × Annual Demand × Ordering Cost per Order / Holding Cost per unit

        = √ ((2 × 783× 12 × $31) / ($11 × 32%))

        = 407

Note : Currently the firm orders at 783 crates per month

Savings in Ordering Cost will be :

Savings = Ordering Cost at Current Quantity - Ordering Cost at EOQ

             = (Total Demand / Current Quantity × Ordering Costs) - (Total Demand / Current Quantity × Ordering Costs)

             = (9396/783 × $31) - (9396/407 × $31)

             = $2,993.88

Savings in Holding Cost will be :

Savings = (Current Quantity - Economic Order Quantity) / 2 × Holding Cost per unit

             = (783 - 407) / 2 × ($11 × 32%)

             = $661.78

4 0
3 years ago
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