Answer:
The part of a stock's return that is systematic is a function ofthe following variables:
I. Volatility in excess returns of the stock market
II. The sensitivity of the stock's returns to changes in the stock market
Explanation:
The Volatility in excess returns of the stock market and the The sensitivity of the stock's returns to changes in the stock market represent the part of the stocks return that is systematic
Answer:
first I will journalize the adjustments:
a. Received a $510 utility bill for electricity usage in July to be paid in August.
Dr Utilities expense 510
Cr Accounts payable 510
b. Owed wages to 15 employees who worked two days at $55 each per day at the end of July. The company will pay employees at the end of the first week of August.
Dr Wages expense 1,650
Cr Wages payable 1,650
c. On July 1, loaned money to an employee who agreed to repay the loan in one year along with $660 for one full year of interest. No interest has been recorded yet.
Dr Interest receivable 660
Cr Interest revenue 660
effects on the accounting equation:
Assets = Liabilities + Equity
a. 0 510 -510
b. 0 1,650 -1,650
<u>c. 660 0 660</u>
660 2,160 -1,500
Revenue - Expenses = Net income Cash flow
a. 0 510 -510 0 OA
b. 0 1,650 -1,650 0 OA
<u>c. 660 0 660 0 OA</u>
660 2,160 -1,500 0 NC
Answer:
a small alpha value is used.
Explanation:
The exponential smoothing forecasting technique is used for forecasting a time series when there is no trend or seasonal pattern, but the mean of the time series is slowly changing over time.
The choice of the smoothing constant α (alpha) is important in determining the operating characteristics of exponential smoothing. The smaller the value of α (alpha), the slower the response. Therefore when a small alpha value is used the exponential smoothing forecasting technique slowly responds to changes in the mean level of demand.
When the values of α (alpha) are larger this makes the smoothed value to react quickly – not only to real changes but also random fluctuations.
Answer:
32,500 units must be sold to realize an operating income of $250,000.
Explanation:
a) Calculations:
Using the break-even plus target profit analysis, we can calculate the target quantity of sales that will generate a target profit.
To break-even, the company needs to sell the following quantity,
Break-even point = fixed costs/contribution margin per unit = $400,000/$20 = 20,000 units.
To achieve a target profit, the company needs to sell the following quantity,
Break-even with target profit = (Fixed cost + target profit)/contribution margin per unit = ($400,000 + 250,000) / $20 = $650,000/$20 = 32,500 units.
b) Break-even analysis is a managerial accounting technique for determining the units should a company can sell or produce in order to even revenue and costs. From the analysis, a company can also determine the units to sell in order to realize a target profit. This helps a lot in decision making.