Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answers

Answer 1

Answer:

Net increase in cash = $650

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf for the complete question.

Also note: See the attached excel file for the statement of cash flows using the indirect method.

From the attached excel file, we have:

Net cash flow from operating activities = $830

Net cash flow from investing activities = $30

Net cash from financing activities = -$210

Net increase in cash = $650


Related Questions

Kubin Company’s relevant range of production is 30,000 to 35,000 units. When it produces and sells 32,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 9.00 Direct labor $ 6.00 Variable manufacturing overhead $ 3.50 Fixed manufacturing overhead $ 7.00 Fixed selling expense $ 5.50 Fixed administrative expense $ 4.50 Sales commissions $ 3.00 Variable administrative expense $ 2.50 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 32,500 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 32,500 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 35,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 30,000 units? (For all requirements, do not round intermediate calculations.)

Answers

Answer:

Kubin Company

1. Total amount of product costs incurred to make 32,500 units:

= $846,250

2. The total amount of period costs incurred to sell 32,500 units:

= $290,000

3. The total amount of products costs incurred to make 35,000 units:

= $892,500

4. The total amount of period costs incurred to sell 30,000 units:

= $282,500

Explanation:

a) Data and Calculations:

Relevant production range = 30,000 to 35,000 units

Actual production and sales = 32,500 units

Average Costs per Unit:

Direct materials                                $ 9.00

Direct labor                                       $ 6.00

Variable manufacturing overhead  $ 3.50

Fixed manufacturing overhead       $ 7.00  $25.50

Fixed selling expense                      $ 5.50

Fixed administrative expense         $ 4.50

Sales commissions                          $ 3.00

Variable administrative expense    $ 2.50

1. Total amount of product costs incurred to make 32,500 units:

Direct materials                                $ 9.00

Direct labor                                       $ 6.00

Variable manufacturing overhead  $ 3.50

Fixed manufacturing overhead       $ 7.00  

Total product cost per unit            $25.50

Total product costs:

Variable costs = $601,250 ($18.50 * 32,500)

Fixed costs =       245,000 ($7.00 * 35,000)

Total product = $846,250

2. The total amount of period costs incurred to sell 32,500 units:

Fixed selling expense                      $ 5.50 * 35,000 = $192,500

Sales commissions                          $ 3.00 * 32,500 =     97,500

Total period costs = $290,000

3. The total amount of products costs incurred to make 35,000 units:

= $892,500 (35,000 * $25.50)

4. The total amount of period costs incurred to sell 30,000 units:

Fixed selling expense                      $ 5.50 * 35,000 = $192,500

Sales commissions                          $ 3.00 * 30,000 =     90,000

Total period costs = $282,500

Suppose a commercial banking system has $40,000 of outstanding checkable deposits and actual reserves of $4,500. If the reserve ratio is 10 percent, the banking system can expand the supply of money by the maximum amount of

Answers

Answer: $50000

Explanation:

Based on the information that's been given in the question, firstly we need to calculate the excess reserves which will be:

= $4500 - (10% × $40000)

= $4500 - $4000

= $500

Then, the money supply that's expanded will be:

= Excess reserve / Reserve ratio

= $5000 / 10%

= $5000 / 0.1

= $50000

Therefore, the answer is $50,000.

Why do you think demand analysis is essential for businesses?

Answers

✦ ✦ ✦ Beep Boop - Blu Bot! At Your Service! Scanning Question . . .

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--------------------------------------------------------------------------------------------------------------Question: Why do you think demand analysis is essential for businesses?

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Answer: Demand analysis is the process of understanding the customer demand for a product or service in a target market. Companies use demand analysis techniques to determine if they can successfully enter a market and generate expected profits to expand their business operations. It also gives a better understanding of the high-demand markets for the company’s offerings, using which businesses can determine the viability of investing in each of these markets. The importance of demand analysis in the business decision is that it helps firms design their pricing policy. The Firm can choose either to lower or raise a product’s price by observing the trend of consumer demand for that product. Producers can’t fix the price for their products without first understanding the market demand for them. These are reasons why I think demand analysis is essential for businesses

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How can an oligopoly cause market failure

Answers

Answer:

Market failure due to Oligopoly

Inefficiency, instability and indeterminacy brought about by oligopoly may result in a market crash. The firm's supremacy is established as the capacity is established more and more, but little is produced in order to create artificial barrier to entry.

Before month-end adjustments are made, the February 28 trial balance of Neutral Milk Hotel contains revenue of $7,000 and expenses of $4,400. Adjustments are necessary for the following items: Depreciation for February is $1,800. Revenue recognized but not yet billed is $2,700. Accrued interest expense is $700. Revenue collected in advance that is now recognized is $2,500. Portion of prepaid insurance expired during February is $400.InstructionsCalculate the correct net income for Neutral Milk Hotel’s Income Statement for February.

Answers

Answer: $4,900

Explanation:

Net income will be:

= (Revenue + Revenue recognized but not yet billed + Revenue collected in advance that is now recognized) - Expenses - Depreciation - Accrued interest expense - Portion of prepaid insurance for the month

= (7,000 + 2,700 + 2,500) - 4,400 - 1,800 - 700 - 400

= $4,900

Classify each of the following items as a final good or service or an intermediate good or​ service, and identify which is a component of consumption​ expenditure, investment, or government expenditure on goods and services. A. Upper A new limousine for the president B. New airplanes bought by United Airlines C. Upper A textbook bought by a student D. Packing boxes bought by Amazon

Answers

Answer:

final good government expenditure

final goods investment

final good ; consumption expenditure

intermediate good ; investment

Explanation:

A final good is a good that is consumed directly by consumers e.g. the textbooks bought by a student does not need to go through further production before it is suitable for use by the student.

An intermediate good is a good that is used in the production of the final good. e.g. the packing boxes bought by amazon will be used in packaging the final good demanded by consumers.

Consumption spending includes spending by households on goods and services. Consumption spending includes :

spending on durables - e.g. laptop

spending on nondurables - e.g. clothes, food

spending on services  - e.g. payment of hospital bill

the purchase of a textbook by a student is an example of consumption spending on durable goods

Investment - It includes purchases of goods and services made by businesses in the production of goods and services

the airplane purchased by the airline would be used to provide services for airline customers. Also, the packing boxes bought by Amazon would be used in delivering goods to customers

Government spending - It includes government consumption expenditure and gross investment.  The purchase of a new  limousine for the president is an example of consumption expenditure

Mayer Instrumentation sold a depreciable asset for cash of $300,000. The original cost of the asset was $1,200,000. Mayer recognized a gain of $45,000 on the sale. What was the amount of accumulated depreciation on the asset at the time of its sale

Answers

The Mayer only had 300,000 and the sale was 45k and then the original cost was 1.2m so they were behind on that asset

From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of answer choices bond interest is deductible for tax purposes. interest must be paid on a periodic basis regardless of earnings. income to stockholders may increase as a result of trading on the equity. the bondholders do not have voting rights.

Answers

Answer:

interest must be paid on a periodic basis regardless of earnings.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

The disadvantages of bonds are listed below as;

1. Bonds can decrease a person's return on equity.

2. Bonds require a payment of the principal amount.

3. Bonds typically require a payment of periodic interest.

Generally, most bonds with shorter maturity time respond less dramatically to changes in interest rates when compared to bonds having longer maturity. Thus, the risk associated with short bonds isn't really significant because their interest rates are less likely to change substantially within that short period of time unlike bonds with longer maturity.

Hence, regardless of the earnings by bondholders, interest must be paid on a periodic basis on a long-term bond.

Isobel consumes positive quantities of both jam and juice. The price of jam is 10 cents per unit and the price of juice is 5 cents per unit. Her marginal utility of jam is 12 and her marginal utility of juice is 6.
A) Without changing her total expenditures, she could increase her utility by consuming more jam and less juice
B) Without changing her total expenditures, she could increase her utility by consuming more juice and less jam
C) Without changing her total expenditures on jam and juice, she could not increase her utility
D) She should spend more money on both jam and juice.
If two goods are perfect substitutes,
A) there is a bliss point and the indifference curves surround this point.
B) straight indifference curves have a negative slope.
C) convex indifference curves have a negative slope.
D) indifference curves have a L-shape.
The consumer is in equilibrium when
A) MRT MRS
B) Px/Py MUx/MUy.
C) the budget line is tangent to the indifference curve at the bundle chosen.
D) All of the above.

Answers

Answer:

A. Without changing her total expenditure, she could increase her utility by consuming more jam and less juice.

B. Straight line Indifference curve has negative slope.

D. All of the above.

Explanation:

Isobel can increase her total utility by consuming more of jam and less of juice. Her total expenditure will not change and therefore price of jam is 10 cents while price of juice is 5 cents. She can have more jam because marginal utility for jam is double than juice.

Gamble Corporation had beginning inventory $100,000, cost of goods purchased $700,000, and ending inventory $140,000. What was Gamble's inventory turnover? Group of answer choices 5 times. 5.5 times. 5.83 times. 6.6 times.

Answers

Answer:

5.83 times

Explanation:

The computation of the Gamble's inventory turnover is given below:

As we know that

Inventory turnover = Cost of goods sold ÷ (ending inventory + opening inventory) ÷ 2

= $700,000 ÷ ($140,000 + $100,000) ÷ 2

= $700,000 ÷ $120,000

= 5.83 times

Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units.

Answers

Answer: Hello your question is incomplete attached below is the complete question

answer :

production plan ( attached below )

Total annual cost = $416,600

Explanation:

Given data of the question:

Demand forecast

Fall = 10,000 ,  winter = 8,000 , spring = 7,000,  summer = 12,000 .

Number of workers = 30, Cost of hiring = $100,

The beginning inventory = 500, Laying cost = $200,

Inventory holding cost = $5/unit, backorder cost = $10/unit, Straight time cost = $5/hr , Overtime cost = $8/hour,  productivity = 0.5 unit/worker hours

season days = 6

number of units produced by a(1) worker in 1 season = 0.5 * 8 * 60 = 240unit

∴ number of units produced by 30 workers = 240 * 6 = 7200 units

use the given data to develop a production plan using excel worksheet.

Production plan of firm ( attached below )

Total Annual cost    =SUM( G12:G17 ) = ( 2000 + 4000 + 2000 + 23000 + 336,000 + 49600 ) =  $416,600

Aptitude is defined as the ability to _____. learn several different jobs learn a particular kind of job get a job get fired from a job

Answers

Aptitude is defined as the ability to learn a particular kind of job.

Major U.S. airlines have responded to the coronavirus pandemic by reducing the number of flights per day, thus reducing capacity. When demand decreases, it is important for airlines to cut capacity from both a cost and revenue perspective.

a. True
b. False

Answers

Answer:

A

Explanation:

Pick the false statement from below. Multiple Choice Expectations of lower inflation rates in the future tend to lower the slope of the term structure of interest rates. The term structure of interest rates includes both an inflation premium and an interest rate risk premium. The term structure of interest rates and the time to maturity are always directly related. The real rate of return has minimal, if any, effect on the slope of the term structure of interest rates. The interest rate risk premium increases as the time to maturity increases.

Answers

Answer: The term structure of interest rates and the time to maturity are always directly related.

Explanation:

The term structure of interest rates shows the relationship between interest rates and the different maturity periods of bonds. Normally, these move in the same direction i.e., the higher the maturity period, the higher the interest rate.

This however is not a given. It might be expected for instance that interest rates might drop in future. In such a situation, the interest might reduce with a longer maturity period which would depict an inverse relationship instead of a direct one.

Summer 20 Corp estimates overhead based on direct labor hours and has given you the following information:
Estimated Manufacturing Overhead Costs 2020 $405,000
Estimated Direct Labor Hours for 2020 220,000
Actual Direct Labor Hours for 2020 202,000
Manufacturing Overhead Account Debit Entries total $380,000
1. Determine the predetermined overhead allocation rate stated with cents.
2. Determine the amount of manufacturing overhead that was allocated.
3. Calculate the amount Summer 20 Corp is over or under allocated during the year.

Answers

Answer:

Results are below.

Explanation:

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 405,000 / 220,000

Predetermined manufacturing overhead rate= $1.841 per DLH

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.841*202,000

Allocated MOH= $371,882

Finally, the over/under allocation:

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 380,000 - 371,882

Underapplied overhead= $8,118

Anna works on an assembly line where it takes her 20 minutes to produce 150 units of a product needed to fill a container. It takes her an additional 5 minutes to transport the container to Josh, who works at the next station. The company uses a safety stock of 20%. The current assembly line uses 5 kanbans between Anna’s and Josh’s stations. What is the demand for the product? Calculate the answer in units per minute. Calculate in Excel and round down to the nearest whole number.

Answers

Answer:

Hence the demand for the product D = 25 units per min.

Explanation:  

Units produced (C) = 150  

Time for production = 20 min  

Time for transport = 5 min  

Total time (T) = 20 + 5 = 25 min  

Safety stock (S) = 20%  

Number of Kanban (y) = 5  

Demand unit per min = D  

[tex]y = D*T*(1+x)/C\\5 = D*25*(1+0.2)/150\\30 = D*1.2\\D = 30/12*10[/tex]

D= 25 units per min.

Preparing Journal Entries for Process Costing SystemDuring its first month of operation, Portia Company purchased $90,000 of materials on account and requisitioned $64,000 of materials for use in production. The company recorded $30,000 of direct labor cost and applied $20,000 of manufacturing overhead. Prepare Portia’s journal entries to record these events.

Answers

Answer:

a.

Date                   Account Title                                     Debit                   Credit

XX-XX-XXXX     Raw materials inventory              $90,000

                           Accounts Payable                                                    $90,000

b.

Date                   Account Title                                     Debit                   Credit

XX-XX-XXXX     Work in Process Inventory           $64,000

                           Raw materials inventory                                          $64,000

c.

Date                   Account Title                                     Debit                   Credit

XX-XX-XXXX     Work in Process inventory            $30,000

                           Wages Payable                                                         $30,000

d.

Date                   Account Title                                     Debit                   Credit

XX-XX-XXXX     Work in Process Inventory             $20,000

                           Manufacturing overhead                                         $20,000

Consider the case of a good with external benefits. If you plant trees in front of your house, the neighborhood is more attractive, and trees create shade, provide oxygen, and a home for birds and squirrels. Thus, the benefits to society are greater than the benefits to you. If the planting of trees is a private choice, you will plant too few trees relative to the socially optimal quantity, because the private value to you is less than the social value.

1. Which of the following would not help to correct this problem?
a. Subsidize consumer purchases of trees to plant.
b. Tax homeowners who plant trees.
c. Subsidize nurseries that sell trees for planting.
d. Have the government provide trees to homeowners.
e. All of the above would help to correct the problem.

2. If the government pays for a program to increase the planting of trees, who will win and lose from the program?

Answers

Answer:

1. b. Tax homeowners who plant trees.

2. Win - society and consumer

   Loose - tax payers and producers.

Explanation:

1. a). If the good creates a positive externalities, then the [tex]\text{private benefits from the good are less than the social benefits}[/tex] from the good.

In the context, the following would not help to correct the problem :

Taxing the homeowners who plant the trees.

If the government taxes or takes some money form the people or the house owners who plant trees in their neighborhood will discourage the people to plant the trees and would not help in correcting the problem.

2. If the government pays for the program that helps to increase the planting the trees, then,

the one who will win from this program is : society and the consumers

the one who will loose : tax payers and the producers as the government would impose more tax in order to fuel the project.

Identify the financial instruments based on the following descriptions.

a. Backed by the US government, these financial instruments are fixed-rate debt securities with a maturity of more than one year. They are considered default free but are subject to interest rate risk.
b. Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk.
c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates Of deposit (CDs), and commercial paper. They can be easily liquidated.
d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.

Answers

Answer:

The solution to the given point can be defined as follows:

Explanation:

For point a:

TREASURY NOTE: For further than a year, Treasury notes were issued for the federal reserves.

For point b:

COMMERCIAL PAPER: Brief securities mostly on corporate debt Sar financial markets.

For point c:

MONEY MARKET MUTUAL FUND: In short-term assets, the Financial Market Fund invests.

For point d:

PREFERENCE SHARES: Preferred shareholders are much more divergent than owners, and less than the shareholders were dealt with.

Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2,000 uncollectible account of its customer, A Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is:________.
a. Accounts Receivable. A-Hopkins 2000
Allowance for Doubtful Accounts 2000
b. Allowance for Doubtful Accounts 2000
Bad debts expense 2000
c. Accounts Receivable A-hopkins 2000
Bad debts expense 2000
d. Accounts Receivable A Hopkins 2000
Allowance for Doubtful Accounts 2000
e. Allowance for Doubtful Accounts 2000
Accounts receivables A-Hopkins 2000

Answers

Answer:

e. Debit Allowance for Doubtful Accounts $2,000

Credit Accounts receivables A-Hopkins $2,000

Explanation:

When a company use the allowance method of accounting for uncollectible accounts, the company would actively review and book bad debt expenses for any debt in doubt of collection. The entry would be; Debit Bad debt expenses, Credit Allowance for doubtful debt

However, where there is sufficient evidence that these debts goes into default, no more expenses would be recorded , instead

Dr. Allowance for doubtful debt $2,000

Cr. Account receivable $2,000

(To record written off receivables)

Tỉnh nào ở Việt Nam nhiều cao su nhất

Answers

Question:-

Tỉnh nào ở Việt Nam nhiều cao su nhất?

Answer:-

Tỉnh Đông Nam Bộ có nhiều cao su nhất.

Assuming purchase costs are rising, determine which of the statements below are correct regarding the cost of goods sold under FIFO, LIFO and weighted average cost flow methods.A. Companies using FIFO will report the highest gross profit and net income. B. Companies using FIFO will pay higher taxes than companies using LIFO, assuming all else
being equal. C. Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold. D. Companies using FIFO will report the smallest cost of goods sold.E. Companies using LIFO will report the smallest cost of goods sold.

Answers

Answer:

A

B

C

D

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

Weighted average cost method calculates the cost of goods sold as the weighted average of cost of inventory

In periods of rising prices, later purchased goods would have a higher price. As a result, LIFO would report a lower net income while companies using FIFO would report the highest gross profit and net income.

Because of the high net income reported under FIFO, tax paid would be the highest too

You have just deposited $9,000 into an account that promises to pay you an annual interest rate of 6.1 percent each year for the next 7 years. You will leave the money invested in the account and 15 years from today, you need to have $25,650 in the account. What annual interest rate must you earn over the last 8 years to accomplish this goal

Answers

Answer:

Annual interest rate = 8.23%

Explanation:

The annual interest rate i must have earn over the last 8 years to accomplish this goal is:

= ((25650/(9000*(1+6.1%)^7))^(1/8))-1

= ((25650/(9000*1.513588))^(1/8)) - 1

= ((25650/13622.29)^(1/8) - 1

= 1.882943323038931^(1/8) - 1

= 1.08231743862 - 1

= 0.08231743862

= 8.231743862%

= 8.23%

In the Shaping Department of Jenkins Company the unit materials cost is $3.00 and the unit conversion cost is $1.80. The department transferred out 8,000 units and had 2,000 units in ending work in process 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is?

Answers

Answer:

$6,720

Explanation:

Calculation to determine what the total cost to be assigned to the ending work in process is

First step

Materials cost=2000 units * 100%

Materials cost=2,000

Conversion costs=2000 units *20%

Conversion costs= 400

Now let determine the ending work in process

Ending work in process=(2000 units *$3.00 per unit)+(400 units *$1.80 per unit)

Ending work in process= $6,000+$720

Ending work in process=$6,720

Therefore the total cost to be assigned to the ending work in process is $6,720

A metal fabrication company is buying a CNC machine for $600,000. After 20 years of use, the machine should have a salvage value of $35,000.

Required:
a. Under 100% bonus depreciation, what depreciation can be claimed in year 1?
b. Under 100% bonus depreciation, what depreciation can be claimed in year 2?

Answers

Answer:

100% Bonus Depreciation:

a. Year 1 = $565,000

b. Year 2 = $0

Explanation:

a) Data and Calculations:

Cost of CNC Machine = $600,000

Salvage value = $35,000

Depreciable amount = $565,000 ($600,000 - $35,000)

100% Bonus Depreciation:

Year 1 = $565,000

Year 2 = $0

b) The 100% bonus depreciation is not limited to the firm's taxable income. The firm can carry back loss arising from 100% bonus depreciation to previous year's income and also carry any unused loss forward to deduct against future income.

Which of the following tasks is not required when using a two-stage activity-based costing model?A. Determining the cost per unit of activityB. Determining how much direct labor each cost object consumesC. Identifying activitiesD. Assigning costs to activities

Answers

Answer:

Option B

Explanation:

In simple words, Activity-based budgeting (ABC) is a better way to allocate overhead expenses.  The expense of each recurrence of an overlay occurrence throughout the procedure is determined during first step of allocation. The cost of every incidence is then allocated to individual things manufactured by the company inside the second stage.

Thus, from the above we can conclude that the correct option is B.

Bengal Co. provides the following sales forecast for the next three months: JulyAugustSeptember Sales units 8,500 9,200 5,950 The company wants to end each month with ending finished goods inventory equal to 20% of the next month's sales. Finished goods inventory on June 30 is 1,700 units. The budgeted production units for August are:

Answers

Answer:

Production= 8,550

Explanation:

Giving the following information:

Sales units 8,500 9,200 5,950

Desired ending inventory=  20% of the next month's sales.

To calculate the production for August, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 9,200 + (5,950*0.2) - (9,200*0.2)

Production= 9,200 + 1,190 - 1,840

Production= 8,550

Human capital refers to: a. the value that the firm's workforce contributes to each product produced or service rendered. b. the net present value of the future competencies of the workforce. c. the amount of money purchasers of the firm would pay for the continuing employment of the present workforce. d. knowledge and skills of a firm's entire workforce.

Answers

Answer:

D

Explanation:

Human capital is an example of an intangible asset. It is the economic value attached to labours' skills and expertise.

Types of Human Capital include :

(1) Knowledge Capital

(2) Social Capital

(3) Emotional Capital.

Qualities of human capital includes

• Education.

• on-the-job training.

• Hard work

• experience

• Mental and emotional well-being.  

• People management.

• Communication skills.

An investor prefers to invest in companies that have high operating leverage. How can this be accomplished if the investor also requires a portfolio beta of 1.0?
A. Invest 50% in cyclical stocks and 50% in firms with high operating leverage
B. Invest 50% in a market index fund and 50% in firms with high operating leverage
C. Finance part of the portfolio with borrowing
D. Invest a portion of the portfolio in U.S. Treasury securities

Answers

Answer:

B

Explanation:

Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

Market index fund is riskless and would have a beta of 1

by investing half in a riskless and half in a risky asset. beta would be equal to 1

The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments in favor of active stabilization policy by the government?

a. Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
b. The current tax system acts as an automatic stabilizer.
c. Businesses make investment plans many month in advance.
d. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.

Answers

I’m pretty sure it’s d
the answer is D. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
Other Questions
According to Olivier Blanchard, Europeans are more likely to use increases in real wages resulting from technological progress to increase ______, and Americans are more likely to use these increases in real wages to increase ______. unemployment insurance benefits; efficiency wages hours of leisure; consumption of goods and services hours of work; hours of leisure consumption of goods and services; hours of leisure Phng php k ton chi tit vt t Use appropriate method calls from the List ADT to create the following list:< 4 19 | 23 30 >You should assume that L is passed to the function as an empty list.public List buildList(List L){ } pls help if I get this right you get brainlist if not you will get a 1 star HELP PLSSS I CANT FAIL!!Which parent function is represented by the table?-22-11001122A. f(x) = |X|B. f(x) = 2xc. f(x) = xD. f(x) = x2 Ribosomes are the site whereare produced.Amino acids are coded for by triplet bases in RNA called ___ provides health care for people over the age of sixty-five.O a. MedicareO b. WelfareO c. Social SecurityO d. none of the above Mrs. Laser is building a new space for her chickens. She has 80 feet of fencing. What is the greatest fencing area she could create using fencing? explain the meaning of personal account,real account and nominal account,give five examples each Mi familia tiene varias tradiciones para la (1)______. Tipicamente (2)_______ la casa la noche del 23 de diciembre. Ponemos un (3)________ y siempre tenemos una (4)_______ de Navidad. El 24 de diciembre, la (5)_________, tenemos una cena grande con nuestra familia de la (6)_______. Siempre traemos (7)_______ de Navidad para cada familia. Durante la cena, los ninos de la iglesia presentan un (8)______ con un (9)______. Jose, Maria, los angeles, los (10)_______ y, por supuesto, el (11)______ Jesus. En la manana del 25 de diciembre tenemos tiempo para la familia. Leemos la historia del nacimiento de Jesus, y en la tarde comemos la (12)_______ y cantamos mucho pero no tenemos (13)_______. Los regalos son para el Dia de los (14)_______, el (15)__________ de enero. Match the plant scientist to his background.1.Paul ErlichAn American agronomist whose breakthrough work with food crops helped maintain world food supplies through the past half-century, preventing predicted famines.2.Norman BorlaugAn American botanist who worked to develop alternate crops to replace cotton during the boll weevil crisis.3.Gregor MendelA landscape architect best known for the design and execution of Central Park, in New York City.4.Fredrick Law OlmsteadA monk whose work on plant breeding made him a founding figure in the development of plant science.5.George Washington CarverWrote The Population Bomb, predicting the breakdown of the food system and famines. A continuous succession of sinusoidal wave pulses are produced at one end of a very long string and travel along the length of the string. The wave has frequency 70.0 Hz, amplitude 5.00 mm, and wavelength 0.600 m. (a) How long does it take the wave to travel a distance of 8.00 m along the length of the string 1. Brad invested $2,300 in a corporate bondthat pays 14% interest compoundedcontinuously. How long will it takeBrad's investment to triple? Assuming the earth is a uniform sphere of mass M and radius R, show that the acceleration of fall at the earth's surface is given by g = Gm/R2 . What is the acceleration of a satellite moving in a circular orbit round the earth of radius 2R mu khi thm NH4NO3 vo em nung ngui li thm NH4NO3 c tc dng g? Classify each structure according to its functional class. Compound A contains a carbonyl bonded to two alkyl groups. Compound B contains an oxygen bonded to two alkyl groups. Compound C contains a carbonyl bonded to propyl and N H C H 3. Compound D is a nitrogen bonded to three alkyl groups. Classify structure A according to its functional class. Classify structure B according to its functional class. Classify structure C according to its functional class. Classify structure D according to its functional class. Cierto individuo, al fallecer, reparti sus ahorros del siguiente modo; la mitad asu esposa; el tercio a su nico hijo; la dcima parte a un sobrino, y dos millonesde nuevos soles a una beneficencia cunto posea? When a Frisbee is flying horizontally through the air, the speed of the air flowing over the Frisbee's top is Solve the inequality: w - (14) < 8 Why is it that restaurants have been so slow in adopting analytics