backwards through the COGS section Periodic inventory system - closing process Benefit of taking a purchase discount Sales returns and allowances Special journals Ethics‚ fraud‚ and corporate governance Topic You as a student Effects of basic merchandising transactions Understanding inventory cost flows Perpetual inventory systems Evaluating performance Taking a physical inventory Periodic inventory systems Relationships within periodic inventory systems Selecting an inventory
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Solutions Guide: A3. (Net advantage to leasing) A firm is considering leasing a computer system that costs $1‚000‚000 new. The lease requires annual payments of $135‚000 in arrears for 10 years. The lessee pays income taxes at a 35% marginal rate. If it purchased the computer system‚ it could depreciate it to its expected residual value over 10 years. The lessee’s cost of similarly secured debt is 10% and its WACC is 15%. a. Calculate the net advantage to leasing assuming zero residual value.
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where m = the number of times compounding occurs during the year II. Determining the present value‚ that is‚ the value in today’s dollars of a sum of money to be received in the future‚ involves nothing other than inverse compounding. The differences in these techniques come about merely from the investor’s point of view. A. Mathematically‚ the present value of a sum of money to be received in the future can be determined with
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Scenario Solution Jennifer Hinkley HSM/220 November 20‚ 2011 Ruth Anne Ristow Axia College of University of Phoenix More and more students are dropping out of high school each year. The need to obtain the funds to open up programs that will make sure that these former students can gain the educational skills they need for their future careers. Having an education will ensure that careers is kept. The plan will take a lot of work‚ understanding‚ and communication from all parties. The students
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Problem Set # 3 Solutions Chapter 7 #2 a) The production function in the Solow growth model is Y = f(K‚L)‚ or expressed in terms of output per worker‚ y = f(k). If a war reduces the labor force through casualties‚ the L falls but Capital-labor ratio k = K/L rises. The production function tells us that total output falls because there are fewer workers. Output per worker increases‚ however‚ since each worker has more capital. b) The reduction in the labor force means that the capital stock
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Problem 1.7. Suppose that you write a put contract with a strike price of $40 and an expiration date in three months. The current stock price is $41 and the contract is on 100 shares. What have you committed yourself to? How much could you gain or lose? You have sold a put option. You have agreed to buy 100 shares for $40 per share if the party on the other side of the contract chooses to exercise the right to sell for this price. The option will be exercised only when the price of stock is below
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subtract from the total present value of the perpetuity: PV = (1/.10)/(1.10)7 = 10/2= $5 (approximately). c. A perpetuity paying $1 starting now would be worth $10‚ whereas a perpetuity starting in year 8 would be worth roughly $5. The difference between these cash flows is therefore approximately $5. PV = $10 – $5= $5 (approximately). d. PV = C/(r − g) = 10‚000/(.10-.05) = $200‚000. Est time: 06-10 9. a. PV = 600‚000/(1.055) = `470‚115.7 (assuming the cost of the car does not
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Academic Honesty Academic honesty is important in academics at any level. There are two main reasons for keeping academic integrity intact and they are to stop students from misrepresenting others works as their own and to cite original works giving the source the proper credit. It is important for students to understand the impact that dishonesty has on the educational process. It is also an integrity issue that encompasses the faculty and students as a whole. Academic honesty is the responsibility
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SOLUTION TO HOMEWORK PROBLEMS Chapter-4: MOTION IN TWO DIMENSIONS 1 A particle starts from the origin at t = 0 with a velocity of 6.0[pic] m/s and moves in the xy plane with a constant acceleration of (-2.0[pic] + 4.0[pic]) m/s2. At the instant the particle achieves its maximum positive x coordinate‚ how far is it from the origin? [pic] 2 At t = 0‚ a particle leaves the origin with a velocity of 5.0 m/s in the positive y direction. Its acceleration is given by [pic] = (3.0[pic] - 2.0[pic])
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customer focus and trust. Further‚ it is seen that ‘spoke’ stores tend to break even in 2 years while ‘hub’ stores take 3 years. In addition to increasing sales‚ variable and fixed costs must be controlled. Increased competition must be tackled. Solutions must be found to hasten operational breakeven without losing customer focus. Options: Modify the hub/spoke model. Add more spokes so that there is greater market penetration. At the same time‚ there must be some hubs and distribution centre set
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