you establish a straddle on wmt using call and put options with a strike price of $140 and same expiration date. the call premium is $3.4 and the put premium is $3.4. what is your profit (per share) if the stock price at the expiration date is $121?

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Answer 1

If the stock price is $121 at the expiration date, then you will have a net loss of $1.40 per share.  The intrinsic value of the options is equal to the difference between the strike price of $140 and the stock price at the expiration date of $121, or $19. Since the combined cost of the options is greater than the intrinsic value, your profit per share is - $1.40.

This is because the combined cost of the call and put premiums was $6.80, and the intrinsic value of the options will be $0 at that stock price. To calculate the total cost of the straddle, add the cost of the call premium of $3.4 to the cost of the put premium of $3.4, for a total cost of $6.80.

Since the stock price is $121 at expiration, the intrinsic value of the options is equal to $19, which is the difference between the strike price of $140 and the stock price of $121. Subtracting the cost of $6.80 from the intrinsic value of $19 gives you a net loss of $1.40 per share.

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Related Questions

an observant salesperson receives a great deal of continual feedback by: group of answer choices attempting to engage buyers presenting a product's benefits and values assessing the buyer's nonverbal cues using verbal supports such as comparisons and analogies in a sales dialogue planning and practicing a sales presentation

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By observing the buyer's nonverbal clues, the perceptive salesman gains a lot of continuous feedback.

Which of the following doesn't belong in the buyer choice process' five stages?

Consuming luxuries or extravagant goods to improve one's status and lifestyle is conspicuous consumption, not one of the five stages in the buyer selection process.

Which of the following is not a content marketing multiple choice question?

Response: Content marketing includes the use of pictures, blog entries, and videos. OneNote is a piece of Microsoft software that enables note-taking and the storage of important information; it is not a kind of content marketing.

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a publishing company publishes books, magazines, and scholarly journals. it is making far more money from its magazines and journals, so the firm has decided to downscope its book business, which will enable it to focus exclusively on new developments and growth in magazines and journals. what is the long-term outcome of the firm's decision?

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The long-term outcome of the publishing company's decision will depend on a variety of factors and cannot be predicted with certainty.

The long-term outcome of the publishing company's decision to downscope its book business and focus exclusively on new developments and growth in magazines and journals will depend on a number of factors, such as the quality and appeal of its magazine and journal offerings, the competitive landscape of the market, and the effectiveness of the company's growth strategies.

However, some possible outcomes could include:

Increased profitability: If the company's magazines and journals continue to perform well and grow, focusing exclusively on these areas could lead to increased profitability in the long term. This could be due to factors such as higher advertising revenue, increased subscriptions, or more effective monetization strategies.Reduced diversity: By downsizing its book business, the company may be sacrificing some of the diversity of its offerings. This could limit its ability to serve certain markets or audiences and could make the company more vulnerable to changes in the magazine and journal markets.Increased risk: Focusing exclusively on magazines and journals could make the company more vulnerable to changes in those markets, such as the emergence of new competitors, shifts in consumer preferences, or disruptions in the industry.

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In situations where it is relatively easy for rivals to readily duplicate the successful features of a companys strategy, the chief way for a company to achieve a durable competitive advantage over its rivals is to 8

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In situations where it is relatively easy for rivals to readily duplicate the successful features of a company's strategy, the chief way for a company to achieve a durable competitive advantage over its rivals is to continuously innovate and adapt its strategy.

Do following things to achieve this:

1. Identify the company's unique selling points and core competencies.


2. Regularly monitor the market and competitors to stay informed about any changes or advancements.


3. Continuously invest in research and development to create new products or services that meet the evolving needs of customers.


4. Focus on improving the efficiency and effectiveness of the company's operations to reduce costs and increase overall performance.


5. Strengthen the company's brand by offering exceptional customer service and building customer loyalty.


6. Encourage a culture of innovation within the company, which fosters creativity and idea generation.


7. Protect intellectual property by securing patents, copyrights, or trademarks to prevent rivals from copying the company's innovations.


8. Regularly reevaluate and adjust the company's strategy based on market trends and competitor activities to maintain a competitive edge.

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when economists discuss profit, they mean economic profit. economic profit is obtained by subtracting which measure of cost from total revenue? dollar costs only, not opportunity costs accounting costs only only implicit costs accounting costs and the best opportunity foregone

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When economists discuss profit, they mean economic profit, which is obtained by subtracting both explicit and implicit costs from total revenue.

Explicit costs are dollar costs that a firm incurs in producing a good or service, such as the cost of materials, labor, and rent. These costs are recorded in accounting statements.

Implicit costs are the opportunity costs of the resources that the firm already owns, such as the cost of using owner-supplied capital or the value of the owner's time and expertise. These costs are not recorded in accounting statements but are still relevant to the economic decision-making of the firm.

Therefore, economic profit is calculated by subtracting both explicit and implicit costs from total revenue. This provides a more accurate measure of the profitability of a firm, as it takes into account all of the costs associated with producing a good or service, both explicit and implicit.

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An organization’s culture is kept alive through socialization. For socialization to be successful, the primary requirement is how close the employees’ values are to those of the organization.
Select one:
True
False

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The given satement is true because an organization’s culture is kept alive through socialization. For socialization to be successful, the primary requirement is how close the employees’ values are to those of the organization.

Socialization is the process of imparting an organization's values, norms, and practices to new employees. The degree to which employees' values match those of the organization determines the success of socialization. In order to cultivate a strong culture within the organization, the company must foster a sense of community among its workers.

A successful socialization process can aid in the development of such a community by creating shared experiences and values among employees.

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The standardization of marketing activities favors __________ thanks to the accomplishment of economics of scale in R&D, production, marketing, and managerial processes

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The standardization of marketing activities favors marketing thanks to the accomplishment of economics of scale. The answer is OPTION C.

A standardization plan implies that all of a company's marketing departments use the same campaigns and methods to achieve the same business objectives. This makes it easy for teams to collaborate and align their efforts across borders. Product adaptation refers to the firm's adaptation of the product to local markets.

It is the process of adapting items for different countries and regions, as well as developing new products for overseas markets. Product standardisation means that the company offers and advertises standardized products on a global scale. Product globalization makes it easy for the corporation to monitor, oversee, and coordinate any brand activity. The answer is OPTION C.

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key considerations when applying the five steps to revenue recognition include: (select all that apply.)

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key considerations when applying the five steps to revenue recognition include The number of performance obligations, Whether the revenue from the performance obligations are recognized at a point in time or over a period of time and the need for allocating the transaction price.

Revenue recognition is a Generally Accepted Accounting Principles (GAAP) that identifies the specific conditions under which revenue is recognized and determines how it is accounted for. Revenue is generally recognized when a significant event occurs, when a product or service is delivered to a customer, making the amount easily measurable for the company. 

The five steps of revenue recognition under IFRS 15 and how to apply them.

Identifies the contract.Identify separate performance obligations.Determines the transaction price.Allocate the transaction price to the performance obligations.Revenue is recognized when each performance obligation is satisfied. 

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t the beginning of the year, a company had an allowance for uncollectible accounts of $22,900. by the end of the year, actual bad debts total $24,900. required what is the balance of the allowance for uncollectible accounts after the write-offs (before any year-end adjusting entry)?

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The balance in the allowance account after the write-offs but before any year-end adjusting entry is -$90. This means that allowance for uncollectible accounts has been overdrawn and hence implies negative balance.

At the beginning of the year, a company had an allowance for uncollectible accounts of $22,900. By the end of the year, actual bad debts totaled $24,900. The required balance of the allowance for uncollectible accounts after the write-offs (before any year-end adjusting entry) can be calculated as follows:

Balance in allowance for uncollectible accounts at the end of the year = Balance in allowance for uncollectible accounts at the beginning of the year + Amount charged to the allowance account - Amount written off as uncollectible during the year

Amount charged to the allowance account = Actual bad debts - Beginning balance in allowance account= $24,900 - $22,900= $2,000

Balance in allowance for uncollectible accounts at the end of the year = $22,900 + $2,000 - Amount written off as uncollectible during the year.

It is given that the amount of actual bad debts for the year is $24,900. This represents the amount that is written off as uncollectible.

The balance in the allowance account after the write-offs but before any year-end adjusting entry can be calculated as follows:

Balance in allowance for uncollectible accounts at the end of the year = $22,900 + $2,000 - $24,900= $-90

This implies that the allowance for uncollectible accounts has been overdrawn by $90.

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which of the following is a way for the government to encourage efficient energy use? responses limiting the development of public transportation systems limiting the development of public transportation systems requiring higher fuel economy standards for new cars requiring higher fuel economy standards for new cars implementing government subsidies to keep gasoline prices low implementing government subsidies to keep gasoline prices low removing all taxes from gasoline at the fuel pump

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One of the most efficient ways for the government to encourage efficient energy use is to require higher fuel economy standards for new cars. Automobiles consume non-renewable fossil fuels, resulting in significant greenhouse gas emissions and environmental concerns.

Higher fuel economy standards would require new cars to be built with more efficient engines and transmissions, reducing the amount of fuel needed to power them. This would not only reduce the environmental impact of transportation but also save consumers money on fuel costs in the long run.

The other options listed in the question are not effective ways for the government to encourage efficient energy use. Limiting the development of public transportation systems would make it harder for people to switch to more sustainable modes of transportation. Implementing government subsidies to keep gasoline prices low would encourage people to continue using gasoline-powered vehicles, which are not efficient. Removing all taxes from gasoline at the fuel pump would further encourage the use of gasoline-powered vehicles, without providing any incentives to switch to more efficient modes of transportation.

Requiring higher fuel economy standards for new cars is a way for the government to encourage efficient energy use.

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suppose congress replaces the current tax system with a flat tax of $22,000 for every person 18 and over. this new tax system would clearly improve: group of answer choices tax

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The basic income tax rate in the UK was 20% for the fiscal year 2021–2022. For incomes exceeding £50,270, this increased to 40%, and for earnings over £150,000, to 45%. Below £12,570, your earnings were tax-free. The Personal Allowance is what it is called.

What is the 22/23 tax threshold?

The personal tax allowance typically rises a little each year, but for 2023–24, the threshold has been fixed at the £12,570 cap from 2022–23. Only earnings over the £12,570 level will be subject to income tax. Employees who qualify may still submit a claim for tax reduction for working from home starting with the current tax year 2022/23. Self assessment (SA) returns, online forms, and paper P87 forms can all be used to submit the claim.

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which of the following is least likely to be a goal of diversity training? select one: a. enhancing cross-cultural sensitivity b. improving interpersonal communication skills c. establishing relationships with outsourced workers d. fostering harmonious working relationships

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(A) Developing relationships with outsourced employees is the LEAST probable purpose of diversity training. A learner must be motivated in order for training to really be effective and successful.

A straight piecework incentive program is a system whereby a employee is paid an amount for every product sold, with such a precise proportionality connecting outcomes and incentives irrespective of productivity.

The Needs Analysis is used to determine training objectives.

What exactly is indeed the ADDIE model?

Assess, Design, Develop, Implement, and Execute

What are SMART objectives?

Precise Measurable Attainable Realistic Time Based.

The unemployment income tax of such a business is determined by the firm's rate of worker dismissals. Compensation schemes ought to be supportive.

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he following financial information is from bronco company. all debt is due within one year unless stated otherwise. retained earnings $ 68,500 supplies 38,500 equipment 72,200 accounts receivable 8,800 deferred revenue 4,200 accounts payable 13,400 common stock 23,100 notes payable (due in 18 months) 28,000 interest payable 5,500 cash 23,200 what is the amount of current liabilities? multiple choice

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the right response is $23,100. Current liabilities are commitments that are expected in somewhere around one year or the typical working pattern of the business, whichever is longer.

They are accounted for on the monetary record as a different class under liabilities. Current liabilities incorporate accounts payable, deferred revenue, interest payable, and some other transient obligation.

To find the number of current liabilities for Mustang Organization, we want to include every one of the things that meet the meaning of current liabilities. Given the given data, the current liabilities are:

Accounts payable: $13,400

Deferred revenue: $4,200

Interest payable: $5,500

The notes payable (due in a year and a half) are not a current responsibility since it isn't expected in any less than one year or the typical working pattern of the business. Hence, we do exclude it in the computation.

How much current liabilities are:

$13,400 + $4,200 + $5,500 = $23,100

Hence, the right response is $23,100.

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on august 1, harris co. determines that it cannot collect $200 from its customer, l. dash. harris co. uses the direct write-off method, so they will record the write-off of this account by debiting: multiple choice question. bad debt expense. accounts receivable - l. dash. cash. sales.

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The direct write-off method of recording bad debts requires that companies record a bad debt expense as soon as they determine that a customer is unable to pay. The correct answer is bad debts requires.

In this case, Harris Co. determines that it cannot collect $200 from its customer, L. Dash, so they will record the write-off of this account by debiting Bad Debt Expense for the amount of $200. This will decrease their net income for the period. In addition, they will also record a credit to Accounts Receivable - L. Dash for the same amount of $200, as this will reduce the Accounts Receivable balance and reflect that the company is no longer owed money by this customer.

The company will not debit Cash or Sales, as they are not receiving money from the customer and the transaction has not been recorded as a sale. This will not affect their Cash balance, nor will it affect their Sales. The correct answer is bad debts requires.

In conclusion, Harris Co. will record the write-off of this account by debiting Bad Debt Expense for the amount of $200 and crediting Accounts Receivable - L. Dash for the same amount. This will decrease their net income and reduce the Accounts Receivable balance.

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sarah and danny formed a partnership. sarah received a 40% interest in partnership capital and profits in exchange for contributing land (basis of $30,000 and fair market value of $120,000). danny received a 60% interest in partnership capital and profits in exchange for contributing $180,000 of cash. three years after the contribution date, the land contributed by sarah is sold by the partnership to a third party for $150,000. how much taxable gain will sarah recognize from the sale?

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The total adjusted basis of the land is therefore $54,000 ($30,000 + $24,000), which means Sarah will realize a taxable gain of $96,000 ($150,000 - $54,000).

Since Sarah is only entitled to 40% of the profits from the sale of the land, her taxable gain is $60,000 (40% x $96,000).

Sarah will recognize a taxable gain of $60,000 from the sale of the land. The gain is calculated as the sale price ($150,000) minus the adjusted basis of the land (basis of $30,000 plus her share of the profit from the sale of the land, which is 40% of the difference between the FMV and the basis, or $24,000).

To summarize, the taxable gain to Sarah from the sale of the land is calculated by subtracting her adjusted basis of the land (the basis of $30,000 plus her share of the profit, which is 40% of the difference between the FMV and the basis, or $24,000) from the sale price of the land ($150,000). In this case, the adjusted basis of the land is $54,000 and the sale price of the land is $150,000, resulting in a taxable gain of $60,000 to Sarah from the sale of the land.

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which of the following characteristics describe managerial accounting? (check all that apply.) multiple select question. controlled by gaap many future projections used to make planning and control decisions emphasis on whole company external users

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The characteristics that describe managerial accounting are: 1. Many future projections used to make planning and control decisions 2. Emphasis on the whole company.

Managerial accounting is different from financial accounting in that it is not controlled by Generally Accepted Accounting Principles (GAAP) and is focused on providing information for internal users rather than external users. Managerial accounting is used by managers and other decision-makers within a company to make informed decisions about various aspects of the business, such as budgeting, cost management, and performance evaluation.

Since the focus of managerial accounting is on internal decision-making, it often involves making many future projections and using them to make decisions about the direction of the company. These projections can include financial forecasts, market trends, and other data that helps managers to anticipate and prepare for future challenges and opportunities.

Additionally, managerial accounting takes into account the entire organization, rather than focusing on specific departments or business units. This holistic approach allows managers to make decisions that benefit the company as a whole, rather than just one area of the business.

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a bank states that it charges a 21% apr (or annual percentage rate) on credit card balances where the cardholder has been late making a payment. however, the bank compounds monthly. what eff% is the bank charging? a. 21.77% b. 22.45% c. 23.14% d. 23.83% e. 21.12%

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To compute the effective interest rate, we must consider the compounding period, which in this case is monthly. As a result, we may apply the following formula.

Annual effective interest rate = (1 + (APR/n))n - 1 Where APR is the annual percentage rate and n represents the number of compounding periods each year. The APR in this situation is 21%, and the compounding period is monthly, thus n = 12. When we enter these values into the formula, we get: Annual effective interest rate = (1 + (0.21/12))12 - 1 = 0.2383 or 23.83% As a result, option (d) 23.83% is the correct answer. If a cardholder fails to make a payment on time, the bank imposes an effective interest rate of 23.83% per year, which is greater than the advertised APR of 21%.

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please answer me comm​

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Answer:

i do not know what that says

Explanation:

Your handwriting is good but they way you write is kinda hard to understand homes

A firm produces 300 units of output at a total cost of $1,000. If fixed costs are $100,Answera. average total cost is $4.b. average variable cost is $3.c. average fixed cost is $10.d. average total cost is $5.

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A firm produces 300 units of output at a total cost of $1,000 average total cost is $4. The answer is OPTION A.

When generating goods and services, producers—often referred to as firms or companies in economics—use inputs, or various components of production. (output). When determining what to create and how to generate it, businesses are crucial. The main goal of the company's output production is to maximize profits.

However, there are some expenses associated with producing output, which limit the profits a company can realize. The firm's decision on how much production to generate depends heavily on the connection between costs and profits. Production. A company uses inputs (factors of production) and, using its technology, converts them into output. The answer is OPTION A.

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a surplus occurs whenever: group of answer choices the price is below the equilibrium quantity. the quantity supplied is less than the quantity demanded. the quantity supplied is greater than the quantity demanded. the government places a binding price ceiling. the government places a nonbinding price floor.

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A surplus occurs whenever the quantity supplied is greater than the quantity demanded. Hence, the correct answer is option C.

What is Surplus?

In economics, the term surplus refers to a situation in which there is a surplus quantity of a commodity or service available in the market after all customers' demands are met at the prevailing market price. It happens when the quantity supplied exceeds the quantity demanded.

It is an indication of inefficient allocation of resources, which could lead to financial losses for both producers and customers.

In the given question, you have to identify the scenario in which a surplus occurs. A surplus happens when the quantity supplied is greater than the quantity demanded. Hence, the correct answer is option C.

The other options can be explained as follows:

The price is below the equilibrium quantity: This condition represents a shortage in the market, where the quantity demanded exceeds the quantity supplied. It does not lead to a surplus.The quantity supplied is less than the quantity demanded: This scenario depicts a shortage in the market, and it is the exact opposite of a surplus. It means that the quantity demanded exceeds the quantity supplied.The government places a binding price ceiling: A binding price ceiling is a government-imposed limit on how high a product's price can be charged. It results in a shortage, not a surplus.The government places a nonbinding price floor: A nonbinding price floor is a government-imposed minimum price that a product cannot sell below. It does not result in a surplus.

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which of the following represents the normal sequence in which the below budgets are prepared? which of the following represents the normal sequence in which the below budgets are prepared? direct materials budget, production budget, sales budget sales budget, production budget, direct materials budget production budget, sales budget, direct materials budget sales budget, direct materials budget, production budget

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The normal sequence in which the below budgets are prepared is Production budget, Direct materials budget, and Sales budget.

A budget is an important and often complicated financial tool that is employed to estimate and plan future income and expenses for both short and long-term periods. It's a financial plan that takes into account all of an organization's income and expenses, as well as cash flow, projected revenue, capital expenditures, and operational expenses, among other things.

A sales budget is a component of a business's master budget that outlines the expected revenue from the selling of a product or service. A sales budget is an estimate of future sales revenue, and it's critical because it drives several key financial line items, including the production budget.

The production budget is a financial plan that outlines the number of items that must be produced to fulfill expected sales and maintain inventory levels during a given period. The production budget is an essential component of the master budget and is used to plan not just production, but also purchasing, labor costs, and cash flow.

A direct materials budget is a financial plan that outlines the materials needed for production during a specific period. It considers the number of products that will be produced and the amount of raw materials required to produce them. A direct materials budget is critical since it enables a company to forecast how much cash is needed to buy the necessary raw materials for production.

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the general level of wages is high in the united states and other industrially advanced countries because

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The general level of wages is high in the United States and other industrially advanced countries because of the high productivity of workers.

What is productivity?

Productivity is a term that refers to the amount of output produced per unit of input. This may include hours worked, labor input, or even energy used. The general level of wages is high in the United States and other industrially advanced countries because of the high productivity of workers.

The following are some of the reasons why the general level of wages is high in the United States and other industrially advanced countries.

Higher Productivity: The high productivity of workers is the main reason why the general level of wages is high in the United States and other advanced countries. Workers in developed nations can produce more in the same amount of time than workers in developing countries.

Higher Cost of Living: The cost of living in developed countries is usually higher than in developing nations. To support themselves, people in developed countries must earn a higher wage.

Low Unemployment: Developed nations typically have lower unemployment rates than developing countries. Because of the scarcity of labor, wages are typically higher.

Labor Unions: Labor unions in developed countries have played a significant role in promoting higher wages for their members. Unions may use collective bargaining or the threat of a strike to persuade employers to pay higher wages.

These are some of the reasons why the general level of wages is high in the United States and other industrially advanced countries.

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4. your company decides to use broad communities of people in its new product innovation process. which step of the new product development process is the company most likely in?

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If a company decides to use broad communities of people in its new product innovation process, it is most likely in the idea generation stage of the new product development process.

What is a new product development process?

A new product development process is a sequence of stages that a company undergoes to conceptualize, develop, and bring a new product to market. The new product development process includes idea generation, idea screening, concept development and testing, business analysis, product development, market testing, and commercialization.

What is idea generation?

Idea generation is the first stage in the new product development process. It involves the generation of new product ideas. It involves searching for new ideas through internal and external sources, such as employees, suppliers, customers, competitors, and R&D teams.

What are broad communities?

Broad communities are large groups of individuals that represent a wide range of interests, experiences, and perspectives. Companies often use these communities to generate ideas for new products or services.

What is the role of broad communities in idea generation?

Broad communities provide companies with a vast pool of ideas that they can use to create new products or improve existing ones. Companies can leverage the diverse perspectives and experiences of broad communities to generate ideas that they may not have considered otherwise.

In conclusion, if a company decides to use broad communities of people in its new product innovation process, it is most likely in the idea generation stage of the new product development process.

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a firm wants a sustainable growth rate of 3.03 percent while maintaining a dividend payout ratio of 25 percent and a profit margin of 4 percent. the firm has a capital intensity ratio of 2. what is the debt-equity ratio that is required to achieve the firm's desired rate of growth?

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The debt-equity ratio that is required to achieve the firm's desired rate of growth is 0.17. A firm requires a debt-equity ratio to achieve its desired rate of growth. The capital intensity ratio for the firm is 2, which implies that it requires $2 of assets for each $1 of sales.

The sustainable growth rate formula is as follows:

Sustainable Growth Rate = (Net Income/Total Assets) × (Total Assets/Total Equity) × (1 - Dividend Payout Ratio)

In this case, the firm wants a sustainable growth rate of 3.03 percent. The dividend payout ratio is 25 percent, and the profit margin is 4 percent. Therefore, the retained earnings ratio is 1 - Dividend Payout Ratio = 1 - 0.25 = 0.75.

The sustainable growth rate formula can be simplified as:

Sustainable Growth Rate = (Profit Margin × Retained Earnings Ratio) × Total Asset Turnover Ratio × Equity Multiplier

The total asset turnover ratio is the inverse of the capital intensity ratio, which is 1/2 = 0.5. The equity multiplier is also the inverse of the debt-equity ratio, which is 1 + Debt/Equity.

The sustainable growth rate formula can be further simplified as:

Sustainable Growth Rate = (0.04 × 0.75) × 0.5 × (1 + Debt/Equity)3.03% = (0.03/0.04) × (0.04 × 0.75) × 0.5 × (1 + Debt/Equity)Debt/Equity = [(3.03/4) / (0.03/0.04) - 1]Debt/Equity = 0.17

Therefore, the debt-equity ratio that the firm requires to achieve its desired rate of growth is 0.17.

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in international business, an advantage of trading through an export agent instead of directly is that the company does not have to deal with multiple choice a middleman. rising labor prices. foreign currencies. the problem of providing discounts. the procurement of resources.

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By using an export agent, the company can benefit from their expertise in global trade and can reduce costs, which would otherwise be incurred by the company if they were to handle the entire process on their own.

Trading through an export agent instead of directly has the advantage of avoiding the issue of having to deal with a middleman, rising labor prices, foreign currencies, the problem of providing discounts, and the procurement of resources. By using an export agent, the company can benefit from their expertise in global trade and can reduce costs, which would otherwise be incurred by the company if they were to handle the entire process on their own.

Additionally, the export agent can take care of the legal and paperwork issues associated with international business, such as shipping, taxation, and financial transactions, which may prove difficult for the company to navigate alone. As a result, using an export agent can save the company money, reduce the workload and complexity of handling international business transactions, and ensure a smoother, more efficient trading process.

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in year 2, rogers corp. changes its inventory method from fifo to the weighted-average method. under the weighted-average method, the year 2 beginning inventory is $5,000 lower than under the fifo method. the financial statements are revised using the retrospective approach. what are the financial statement effects of the change in accounting principle? (select all that apply.) multiple select question. year 1 ending inventory does not change. year 1 net income will decrease. year 1 ending inventory will decrease. year 1 retained earnings will increase. need help? review these concept resources.

Answers

There are a few financial statement effects of the change in accounting principle from FIFO to the weighted-average method by Rogers Corp in year 2.

Here are the following effects:

Year 1 ending inventory does not change.

Year 1 net income will decrease.

Year 1 ending inventory will decrease.

Explanation:

When a change in inventory method is made by a company, it results in changes to the financial statements, and in this case, Rogers Corp. had changed its inventory method from FIFO to the weighted-average method. The effect of this change in accounting principle is seen in the revised financial statements using the retrospective approach.

Under the weighted-average method, the year 2 beginning inventory is $5,000 lower than under the FIFO method. Therefore, the year 1 ending inventory does not change, and year 1 net income will decrease due to the change in accounting principle from FIFO to the weighted-average method.

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you're trying to save to buy a new $194,000 ferrari. you have $44,000 today that can be invested at your bank. the bank pays 5.2 percent annual interest on its accounts. how long will it be before you have enough to buy the car?

Answers

It will take approximately 17.57 years to have enough money to buy a new $194,000 Ferrari by investing $44,000 at the bank with an annual interest rate of 5.2%.

Given:

Initial amount = $44,000

Future amount = $194,000

Interest Rate = 5.2%

Let the time be ‘t’ years.

Using the compound interest formula,

Future Amount = Initial Amount * (1 + r/n)^(n*t)

where r = interest rate, n = number of times compounded annually

Compound interest formula for this question will be $194,000 = $44,000 * (1 + 5.2%/1)^(1*t)

Simplifying the above equation, we get

4.4091 = (1 + 5.2%/1)^t

Take natural logarithm on both sides,

ln(4.4091) = ln(1 + 5.2%/1) * t

Dividing by ln(1 + 5.2%/1) on both sides,

t = ln(4.4091) / ln(1.052) = 17.57 years (rounded to two decimal places)

Therefore, it will take approximately 17.57 years to have enough money to buy a new $194,000 Ferrari by investing $44,000 at the bank with an annual interest rate of 5.2%.

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which of the following are potential limitations to using patents to encourage innovation? select all that apply: in a fast-moving high-technology industry, patents may be almost irrelevant because technology is advancing so quickly. patents create no incentive for research and development. not every new idea can be protected with a patent or a copyright. all of the above

Answers

Answer: in a fast moving high technology industry, patents may be almost irrelevant because technology is advancing so quickly

Not every new idea can be protected with a patent or a copy right

Explanation:

Because technology is developing so quickly, not every new idea can be protected by a patent or copyright in a high-tech company where things move quickly.

In what ways do patents promote innovation?

Patents honour and reward inventors for their successful commercial ideas. As a result, they motivate creators to develop fresh concepts. A small business or inventor with a patent is aware that there is a good chance they will make back the time, money, and effort they put into developing a technology.

What connection exists between intellectual property and innovation?

Intellectual property rights (IPRs) are the institutional rules that encourage investment in research and development and hence enable innovation (R&D).

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explain the extended period of time it takes the market to self correct in order to close an output gap.

Answers

The extended period of time it takes for the market to self-correct and close an output gap is determined by the speed of economic adjustment. This adjustment process is affected by the elasticity of goods and services, the speed of money and capital flows, and the type and magnitude of economic shock.

Elasticity is how responsive prices are to changes in demand. The speed of money and capital flows affect the speed of adjustment, as when capital is easily transferable it is easier for the market to adjust. The type and magnitude of the economic shock also affects how quickly the market will adjust. Generally, it takes longer for the market to adjust to larger shocks.

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question 2 what are some ways that peta and deanna agree to measure the customer satisfaction quality standard for the tablet project? select all that apply.

Answers

The ways that Peta and Deanna agree to measure the customer satisfaction quality standard for the tablet project are Lobby wait time of under 10 minutes and 98% order accuracy.

The most often used indicator of customer satisfaction is the Customer Satisfaction Score (CSAT). The totality of a customer's views, interactions, and ideas about your company is known as the customer experience (or CX). Monitoring customer satisfaction indicators enables you to gain useful insights into the operation of your whole firm. With the information, you may strengthen your efforts in your strong points and strengthen your weaknesses. Companies work hard to maintain their devoted consumers since it costs 5–25 times more to bring in new ones than to keep the ones they already have. The income is particularly important since even a little 5% gain in client retention can result in large increases in profitability.

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Complete Question:

What are some ways that Peta and Deanna agree to measure the customer satisfaction quality standard for the tablet project? Select all that apply.

A. An average table turn time of 45 minutes.

B. Lobby wait time of under 10 minutes.

C. 98% order accuracy

D. 80% email capture and restaurant newsletter opt-in

goodspeed automobiles manufactures 100 disc brake cylinders. at this output level, its marginal revenue is equal to its marginal cost. if the revenue per unit of output is $500 and the per unit cost is $350, its profit is: group of answer choices

Answers

The profit of Goodspeed Automobiles at this output level is $15,000. Goodspeed Automobiles manufactures 100 disc brake cylinders at a given output level, where the marginal revenue is equal to the marginal cost.

Marginal revenue is the additional revenue gained by producing one additional unit, while marginal cost is the additional cost incurred by producing one additional unit. In this case, the revenue per unit of output is $500, while the per unit cost is $350.

Thus, the profit of Goodspeed Automobiles can be calculated by subtracting the total cost from the total revenue. The total revenue can be calculated by multiplying the revenue per unit ($500) with the number of units (100), resulting in $50,000. The total cost can be calculated by multiplying the cost per unit ($350) with the number of units (100), resulting in $35,000. Thus, the profit of Goodspeed Automobiles at this output level is $15,000.

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