mcgill p1-1 preparing an income statement , statement of stockholders equity and balance sheet answer key

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Answer 1

Company's Financial Statements include Income statement, Statement of Stockholder's Equity & Balance Sheet that are used to assess the financial situation of a company.

Answer is attached in the attachments.

Income Statement: A financial statement may be a financial plan that lists the revenue and expenses of the corporate. Additionally, it displays a company's profit or loss over a selected time-frame. you will better comprehend your company's financial situation by comparing the financial statement to the record, income statement, and income forecast.

Statement of Stockholder's Equity: The difference between total assets and total liabilities, which is usually measured monthly, quarterly, or annually, is that the statement of stockholders' equity. It will be found on the record, one in all three crucial financial records for all small firms.

Balance Sheet: An organization's assets, liabilities, and shareholder equity are listed on a record, which could be a plan. one among the three primary financial statements wont to assess an organization is that the record. It offers an image of a business's financial situation (what it owns and owes) as of the publication date.

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Mcgill P1-1 Preparing An Income Statement , Statement Of Stockholders Equity And Balance Sheet Answer
Mcgill P1-1 Preparing An Income Statement , Statement Of Stockholders Equity And Balance Sheet Answer
Mcgill P1-1 Preparing An Income Statement , Statement Of Stockholders Equity And Balance Sheet Answer

Related Questions

concurrent engineering is a systematic approach that integrates the design and manufacture of products with the goal of optimizing all elements involved in the life cycle of the product.

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Concurrent engineering is a methodical approach to the concurrent, integrated design of goods and the processes that are connected to them, such as manufacturing and support. With this strategy, the developers are supposed to be forced to think about all aspect of the product life cycle, from conception to disposal, including quality and cost, right from the start.

Concurrent engineering, integrated product definition, or simultaneous engineering are all acceptable names for the idea as long as we consistently deliver high-quality goods on schedule and at the lowest possible cost. Communication and understanding are improved when everyone uses the same definition. Due to its widespread adoption, the phrase "concurrent engineering" and the Department of Defense/Institute of Defense Analysis (DoD/lDA) definition are used.

The components of concurrent engineering are still being improved and refined by the industry. To make this process work, we must all participate. A common sense approach to product design, manufacturing, development, production, and support is concurrent engineering, and all of us must be willing to use it.

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klingon widgets, incorporated, purchased new cloaking machinery five years ago for $15 million. the machinery can be sold to the romulans today for $14.3 million. klingon’s current balance sheet shows net fixed assets of $12 million, current liabilities of $840,000, and net working capital of $223,000. if the current assets and current liabilities were liquidated today, the company would receive a total of $1.05 million cash.

Answers

Firstly we shall find the Working capital.

Current liabilities subtracted from Current Assets we get Working capital.

By adding all the book value of assets we get Book value of assets amounting to 13,063,000

Net working capital(NWC) plus Market value of fixed assets are given in the question, we just add those values and get we get the answer which is 15,350,000

a. Book value of assets:

Formula:

Current assets - Current liabilities = Working Capital

But given,

current assets - 840,000 = 223,000

current assets = 840,000 + 223,000 = 1,063,000

Add the above current assets to the net fixed assets we get book value of total assets

1,063,000 + 12,000,000 = 13,063,000

b. Sum of NWC plus market value of fixed assets:

1,050,000 + 14,300,000 = 15,350,000

Working capital, also called net capital, represents the difference between a company’s current assets and current liabilities.

Working capital could be a measure of a company’s liquidity and short-term financial health.

A company has negative working if its ratio of current assets to liabilities is a smaller amount than one (or if it's more current liabilities than current assets).

Positive capital indicates that a corporation can fund its current operations and invest in future activities and growth.

High assets isn’t always an honest thing. it'd indicate that the business has an excessive amount of inventory, not investing its excess cash, or not capitalizing on low-expense debt opportunities.

Your question is incomplete. Find the missing part below:

a. What is the book value of Klingon’s total assets today?

b. What is the sum of the market value of NWC and the market value of fixed assets?

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The first billion-dollar corporation in the united states, u.s. steel, was created through ______.

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The first billion-dollar corporation in the united states, u.s. steel, was created through Mergers

This is further explained below.

What is Merger?

Generally, Companies often choose to merge in order to broaden their customer base, enter new market niches, or increase their market share.

A merger is the voluntary combination of two businesses into a single new legal entity on conditions that are generally equivalent.

Conglomerate mergers, congeneric mergers, market extension mergers, horizontal mergers, and vertical mergers are the five most common forms of mergers.

In conclusion, The United States Steel Corporation was the first company in the United States to have a market capitalization of one billion dollars.

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In the current year a partnership reported the following items: what is the partnership's ordinary income?

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The partnership's ordinary income is $394,500.

Given,

Fees earned = $500,000

Salary expense = $100,000

Utility expense = $5,000

Charitable contributions= $8,000

Long-term capital gain = $2,000

Office supplies = $500

There are certain items of income, deduction, gain, loss or credit which must be separately stated from ordinary income and passed through directly to the partner.

Thus, ordinary income is calculated below:

Fees earned - (Salary expense + Utility expense + Office supplies)

= $500,000 - ($100,000 + $5,000 + $500)

=$394,500

Hence, the partnership's ordinary income is $394,500.

The given question is incomplete, the complete question is-

The current year, a partnership reported the following items:

Fees earned $500,000

Salary expense $100,000

Utility expense $5,000

Charitable contributions $8,000

Long-term capital gain $2,000

Office supplies $500

What is the partnership's ordinary income?

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The _____ perspective suggests that appropriate managerial behavior in a given situation depends on unique elements in that situation.

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The contingency perspective suggests that appropriate managerial behavior in a given situation depends on unique elements in that situation.

There is no ideal method to run a business, structure a team, or make choices, according to the contingency theory of organizational behavior. Instead, the best course of action depends on the circumstances both inside and outside the body. Contingent leaders are adaptable in their choice of and adaptation of concise methods to fit change in situation at a specific point in the operation of the company.

Two previous research projects that sought to identify the characteristics of good leadership behavior impacted our contingency approach to leadership. In the 1950s, Ohio State University researchers conducted in-depth surveys measuring a range of potential leader behaviors in diverse organizational environments.

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Suppose there is currently a tax of $50 per ticket on airline tickets that is imposed on the consumers. if the tax is reduced from $50 per ticket to $30 per ticket, then the?

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If the tax is  reduced from $50 per ticket to $30 per ticket then supply curve will shift downwards by $20,  and the  effective price received by seller will increased by less than $20.

Who is called a consumer?

A consumer is the one who buys the item for his/her possess require and uses or consumes it. A consumer cannot exchange the great, product or service but can consume it to gain his/her livelihood and self-employment definition of consumer. The consumer is the one who is the end-user of any products or services.

Types of consumer:

Loyal Customers

Impulse Shoppers

Bargain Hunters

Wandering Consumers

Need-Based Customers

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robert is a real estate agent who wants to show his audience how housing prices have changed over the past five years. what visual aid is best suited to display this information?

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Line chart visual aid is best suited to display this information.

What do you mean by real estate ?

Real estate is a general term for all forms of private property, including land and structures. Real estate comprises all resources on the land, such as water and minerals, and can be used for residential, commercial, or industrial purposes.

It serves as a major source of wealth and savings for many Americans. Housing for families is provided by residential real estate. For many Americans, it is their main source of wealth and savings. Commercial real estate, which includes residential complexes, generates employment and provides places for manufacturing, offices, and retail.

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economists are likely to disagree most often over a normative statements. b opportunity costs. c they seldom disagree over either normative or positive statements. d positive statements. e normative and positive statements.

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Economists are likely to disagree most often over normative statements.

What are nominative statements?

A normative statement gives an opinion on how desirable a condition is in various areas, including economics and philosophy. A normative statement also referred to as a negative statement, is intended to discuss how the world should be, as opposed to a descriptive statement, which is intended to explain the world as it is. A normative statement is one that communicates an opinion about what should be, such as "the world would be a better place if the moon were made of green cheese." Modal verbs like as "should," "would," "could," or "must" are used to indicate normative claims. Normative economics is a branch of economics that is based on normative assertions.

Thus, option b) Nominative statement is the correct answer.

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marty receives a tip that the price of shares of an oil company are about to fall significantly. in order to avoid a huge loss, he goes into his online brokerage account and sells all of the stock that he owns in the oil company. what type of market transaction is taking place?

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Based on the fact that Marty sold all his shares in the oil company, the market transaction that is taking place is a Secondary market offering.

What happens in a Secondary market offering?

A Secondary market offering refers to when an owner of the stock of a company decides to sell it on the stock market.

In the secondary market, the company that has the stock is not involved in the transaction but instead only those who own the stock transact with each other.

Marty owns the stock in the oil company and offering it means that this is a Secondary market offering.

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when an economy produces a combination of goods that lies inside the production possibilities curve: group of answer choices resources will never be depleated. opportunity cost is constant. resources are not being fully and efficiently used. resources are being fully and efficiently used. prices are constant.

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When an economy produces a combination of goods that lies inside the production possibilities curve that resources are being used fully and efficiently. Thus, Option A is correct.

What is the Production possibility frontier (PPF)?

The production possibility frontier (PPF) is a curve on a graph that depicts the maximum amounts that can be produced of two products if they are both made from the same limited resource. The production possibility curve is another name for the PPF.Opportunity cost in the production of commodities is what is lost when resources are diverted from one product to another. A curve on a graph depicts the amount that can be produced to its maximum.The production possibility frontier (PPF), which depicts situations that are impractical given the available resources, is above the curve.The PPF illustrates that an increase in one commodity's production can only occur when the production of the other commodity falls.Managers can use the PPF as a tool for making decisions when determining the best product mix for their organisation.

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preventing liabilities is a business-related consequence of failed software. group startstrue or false true, selected false

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False, preventing liabilities is a business-related consequence of failed software.

Describe business.

A business is a group of people or an inventive entity that engages in industrial, commercial, or professional activities. Companies can be either for-profit businesses or nonprofit organizations. There are many different sorts of businesses, including corporations, partnerships, limited liability companies, and sole- proprietorships.

A business is a creative corporation or group that carries out professional operations. They may be commercial, industrial, or some other type. Businesses that are for-profit try their best to turn a profit, whereas nonprofit organizations work to advance charitable causes.

A business is defined as a trade or profession that involves purchasing and reselling goods and services with the intention of turning a profit. One excellent example of a business is farming. An example of commerce is the sale of a home.

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as a manager at barcelona, which of the following activities do you think you would be encouraged to do?

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The manager at Barcelona would be highly encouraged to  the chef to create new menu items featuring seasonal ingredients.

To increase customer service and business profitability, the management of Barcelona Restaurant will be encouraged to be inventive and to provide frequent personnel training.

Barcelona

Barcelona is a city on the northeastern coast of Spain. It is the capital and largest city of the Catalan autonomous community, as well as Spain's second most populous municipality. With a city population of 1.6 million, its metropolitan area extends to multiple nearby communities within the Province of Barcelona and is home to around 4.8 million people, ranking it fifth in the European Union after Paris, the Ruhr area, Madrid, and Milan.

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In 2010, the gni per capita for country x was $44,270, but its gni per capita at ppp was $49,640. in the same year, the nominal gni of the united states was $47,360. this means that?

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According to the GNI per capita, the cost of living was lower in Country X than in the US.

GNI per capita is calculated as the gross national income divided by the mid-year population and converted to the US dollars by using the World Bank Atlas method. The Gross National Income (GNI) is calculated as the sum of the value contributed by all resident producers, any product taxes (minus subsidies) that are not taken into account in the valuation of output, and net receipts of primary income (employee compensation and property income from abroad). The World Bank expresses national currency values in US dollars using a specific Atlas method of conversion to minimize the impact of pricing and exchange rate volatility. In order to account for variations in inflation rates between the country and the G-5 nations, a conversion factor is applied that averages the exchange rate for the current year and the two years prior.

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Adapting to a new culture involves overcoming obstacles and setbacks. Some people even experience a culture shock after spending some time in a different culture. A person who doesn’t believe herself capable of understanding people from unfamiliar cultures will often give up after experiencing obstacles or setbacks. By contrast, a person with high ____________ is driven to learn more about different cultures despite obstacles and setbacks.

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Adapting to a new culture involves overcoming obstacles and setbacks. Some people even experience a culture shock after spending some time in a different culture. A person who doesn’t believe herself capable of understanding people from unfamiliar cultures will often give up after experiencing obstacles or setbacks. By contrast, a person with high culture shock is driven to learn more about different cultures despite obstacles and setbacks.

Cultural modification of a personal, group, or people by adapting to or borrowing traits from another culture the acculturation of immigrants to American life also : a merging of cultures as a result of prolonged contact. way to access goods and services within the new culture.

The benefits of getting outside your temperature and experiencing another culture and other people is immense. It builds confidence and empathy and strengthens our culture sense of self while at the identical time helping us to feel connected to others.

A culturally intelligent workforce will demonstrate better tolerance, trust and understanding of world colleagues. The benefits of getting outside your temperature and experiencing another culture and other people is immense. It builds confidence and empathy and strengthens our sense of self while at the identical time helping us to feel connected to others.

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The phrase ___________ conveys the idea of voluntary but determined efforts to improve leadership skills.

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The phrase 10 percent stretch conveys the idea of voluntary but determined efforts to improve leadership skills.

What are leadership skills?

You use leadership abilities when coordinating with others to accomplish a common goal. As a manager or project manager, you must have the ability to inspire others to finish a list of duties, frequently on time. Leadership is a blend of numerous diverse skills working together, not simply one skill.

A successful leadership team is crucial to every firm. They can aid in creating effective teams inside an organization and guarantee that initiatives, projects, and other job tasks are carried out properly. Anybody really can grow into a strong leader by acquiring the proper techniques for developing and honing their leadership qualities. Great leaders possess excellent communication and interpersonal skills.

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kangaroo autos is offering free credit on a new $14,000 car. you pay $1,400 down and then $420 a month for the next 30 months. turtle motors next door does not offer free credit but will give you $1,080 off the list price.

Answers

To know which company offers best deal we need to find the present value of the asset by considering down payment to be paid with the interest rate (0.75%). After calculations we find Present Value of Kangaroo autos is 12,780 & Present value of Turtle Motors is 12,920.

a. Present Value of Kangaroo autos:

PV = down payment + C x ((1/r)-(1/(r(1+r)^t))

PV = 1,400 + 420x ((1/0.0067(1+0.0067)^30))

PV = $12,780

Present value of car at Turtle Motors:

PV = price of car − discount

PV = $14,000 − 1,080

PV = $12,920

b. Turtle Motors offers the best deal because it has the lower present value of costs.

Given a certain rate of return, present value (PV) is the current value of a future financial asset or stream of cash flows. A discount rate or the interest rate that could be obtained through investment is applied to the future value to get the present value. The difference between present value and future value is that the former shows you how much money you'd need in today's dollars to earn a certain amount in the future.

The idea of present value holds that money today is worth more than it will be in the future. In other words, money received in the future is not as valuable as money obtained today in the same amount.

Your Question is Incomplete. Kindly find the full content below:

a. If the rate of interest is 0.75% a month, calculate the present value of the payments to Kangaroo Autos. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. Which company is offering the better deal?

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Starting from point e, which point is the most likely outcome of an increase in the price of a production substitute for a good, holding all else constant?

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Starting from point e, the point that is the most likely outcome of an increase in the price of a production substitute for a good, holding all else constant is point d.

What is the impact of increase in price?

The Increase in the rate of  prices of goods and services is one that will lead to  lower rate of demand, and as such, also if demand increases. it is one that will also lead to increase in the amount of goods that is supplied.

Note that supply of different products is one that tends to responds to demand in a lot of ways, with some products' demand being known to be less sensitive to prices than some other cases

Therefore, based on the above, Starting from point e, the point that is the most likely outcome of an increase in the price of a production substitute for a good, holding all else constant is point d.

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Which type of government is a system where a dynamic leader unites people towards a common goal and expects unconditional loyalty and uncritical support?.

Answers

Answer:

either absolutism or totalitarianism, I think they're the same

Explanation:

hope it helps

An organization discovers that the computer of the chief financial officer has been infected with malware that includes a keystroke logger and a rootkit. the first action to take would be to?

Answers

The first action to take would be to disconnect the PC from the network.

What is an organization?

An organization can be defined as an Institution for firms or businesses that is being made with the purpose. They are being too rated for social purposes or for money purposes.

The chief engineer officer helps a Malware or some kind of then the first step should be to disconnect the PC from the network as the internet is the major source of viruses, now been contaminated with malware that comprises spyware and a keylogger.

As the officer may also have some kind of important information or material feeded in the PC.

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for 2021, devonte, a single father, reported the following amounts relating to his investments: net investment income from interest$ 9,000 interest expense incurred on a loan to purchase stocks2,000 interest expense on funds borrowed in 2020 to purchase land for investment6,000 what is the maximum amount that devonte can deduct in 2021 as investment interest expense?

Answers

Therefore,  the maximum amount that Devonte can deduct in 2021 as investment interest expense is $ 1,000.

net investment income from interest$ 9,000

interest expense incurred on a loan to purchase = stocks2,000

Investment for land is $6,000

Therefore,  the maximum amount that Devonte can deduct in 2021 as investment interest expense is $ 9,000 - $ 8,000

                                                 = $ 1,000

In reality, declare the deduction for investment interest costs, you ought to itemize your deductions. investment hobby goes on timetable A, Margin hobby will nevertheless be deductible for the tax year 2021 as an itemized deduction on timetable A. but, the standard deduction has been extended, meaning maximum taxpayers will now not be listing deductions on account that claiming the standard deduction will prove greater tax-green in lots of cases.

The amount of interest that has been earned however now not yet collected in coins is referred to as interest receivable. A debit to the hobby receivable account and a credit score to the hobby earnings account are the most commonplace journal entries used to file this transaction.

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roger smith established an insurance agency on july 1, 20y5, and completed the following transactions during july:

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Yes, it is true that revenue increases the shareholders' fund, which is then invested as it grows (crediting).

But expenses and dividend payments to shareholders diminish the fund as they are made (debiting), which is why the negative effect is shown as a debit item.

What are shareholders Meaning?

Anyone who holds at least one share of a company's stock or mutual fund unit is referred to as a shareholder. Shareholders, who possess a majority of the company's ownership, also have specific rights and obligations.

Having this kind of ownership enables them to profit from a company's success. These benefits include dividend payments arising from financial gains or rising stock prices. In contrast, a company's share price would definitely decrease if it had a loss, which might result in losses for investors or a decrease in their holdings.

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When may an amendment be offered to a motion?

Answers

Raise your hand and make the following motion: “I move to amend the motion on the floor.” This also requires a second. After the motion to amend is seconded, a majority vote is needed to decide whether the amendment is accepted. Then a vote is

When deciding on contextual elements, you should identify your ______.

Answers

When deciding on contextual elements, you should identify your Target market.

What is Contextual factors?

It is a way of thinking, simply a technique to look at your interface and aid in decision-making.The Contextual Elements technique is only a way of enabling you to map them out since it is unpredictable how invisible boundaries and restrictions will be defined for your application, but it is preferable if they are mapped in some way.An actor will take materials for creating the proceduralized context from this area of the context that is more or less linked to the actor's point of concentration. The granularity of contextual factors varies and they are a heterogeneous population.These contextual factors give war crimes and crimes against humanity normative distinctiveness, separating them from one another and from domestic crimes.

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Traditional promotional messages such as advertising, sales promotion, and publicity releases are examples of ________ messages.

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A promotion that uses offline methods to reach a local audience is referred to as traditional marketing. A product or service is promoted using traditional marketing, which also includes billboards, television commercials, newspaper ads, and other forms of advertising. The efforts are frequently expensive, and measuring their success can be difficult.

Digital marketing is displacing traditional marketing by reaching clients online through social media, email, and search engines. Compared to traditional marketing, digital marketing is more cost-effective and more easily promotion trackable in terms of its effectiveness.

It is possible to create marketing materials specifically for conventions, seminars, or conferences. The efforts are frequently expensive, and measuring their success can be difficult. To attract visitors to your promotion booth and learn more about the company and its goods, you could, for instance, build booths or more substantial materials like banners or signage.

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bartell’s, a seattle drug store operates an in-store printing service for customers with digital cameras. the current service, which requires employees to download photos from customer cameras, has monthly operating costs of $5,500 plus $0.15 per photo printed. management is evaluating the desirability of acquiring a machine that will allow customers to download and make prints without employee assistance. if the machine is acquired, the monthly fixed costs will increase to $7,000 and the variable costs of printing a photo will decline to $0.05 per photo. what is the total cost of printing 25,000 copies with the proposed customer self-service process?

Answers

The definition of self-service. Self-service is an approach where users access resources to find solutions on their own without requiring assistance from a service representative.

(1) total cost for 10k photos = fixed costs + variable costs = 5500 + 0.15 * 10000 = 5500+ 1500 = 7000

total cost for 25k photos = fixed costs + variable costs = 5500 + 0.15 * 25000 = 5500 + 3750 = 9250

a.(2) total cost for 10k photos = fixed costs + variable costs = 7000 + 0.05 * 10000 =7000+ 500 = 7500

total cost for 25k photos = fixed costs + variable costs =7000 + 0.05 * 25000 = 7000 + 1250 = 8250

b. For this, we first find the volume at which both processes cost the same.

let the required volume be x.

So, 5500 + 0.15x = 7000 + 0.05x

=> 0.15x - 0.05x = 7000 - 5500

=> 0.1x = 1500

=> x = 1500/0.1 = 15,000

So,  at the monthly volume of 15,001 photos and above, the proposed process becomes preferable.

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According to the digital wallet overview video case, when adding a credit or debit card to your digital wallet, what security method is generally used to prevent someone else from adding your debit or credit card to their digital wallet?.

Answers

According to the digital wallet overview video case, when adding a credit or debit card to your digital wallet, the Tokenization security method is generally used to prevent someone else from adding your debit or credit card to their digital wallet

This is further explained below.

What is Tokenization?

Encrypting all of the user data is one of the primary ways that tokenization offers cardholders protection from fraudulent behavior.

It is a critical enabler for a broad number of use cases involving digital payments, and it is relevant to transactions carried out in person as well as those carried out online.

In conclusion, the Tokenization security mechanism is often applied when adding a credit or debit card to your digital wallet in order to prevent another person from adding your debit or credit card to their digital wallet.

This is done in order to protect you from identity theft. This is shown in the video scenario that provides an overview of a digital wallet.

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If you wanted to pruchase ownership interests in diversified portfolisos of investments which type of finacncial prodcut provider should you contact a mutual fund?

Answers

If you wanted to purchase ownership interests in diversified portfolios of investments which type of financial product provider should you contact a mutual fund.

In order to invest in securities such as stocks, bonds, money market instruments, and other assets, mutual funds aggregate the funds from shareholders. Professional money managers run mutual funds, allocating the assets and attempting to generate capital gains or income for the fund's investors. The portfolio of a mutual fund is set up and kept up to date in accordance with the specified investment goals in the prospectus. Small or individual investors have access to professionally managed portfolios of stocks, bonds, and other securities through mutual funds. As a result, each shareholder shares proportionately in the fund's profits or losses.

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burger king locates a franchise across the street from a mcdonalds. at play here is the principle of

Answers

burger king locates a franchise across the street from a mcdonalds. at play here is the principle of competition.

Competition

Competition is a competition in which two or more parties compete for a single, unshareable goal, where one party gains at the expense of the other (an example of which is a zero-sum game). Entities such as organisms, people, economic and social organizations, etc., can compete with one another. The conflict may arise from the pursuit of any exclusive goal, such as dominance, market share, niches, limited resources, or a territory.

Competition between living things that coexist in the same environment occurs in nature. Animals fight for access to food, mates, water, and other biological resources. Humans often fight with one another for food and mates, but when these necessities are met, intense rivalries can develop over the pursuit of money, fame, and other material goods in a static, monotonous society.

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i now have $20,000 in the bank earning interest of .5% per month. i need $30,000 to make a down payment on a house. i can save an additional $100 per month. how long will it take me to accumulate the $30,000?

Answers

It would take approximately 45 months to save the target future value.

What is future value?

Future value (FV) is a financial concept that assigns a value to an asset based on estimated variables such as future interest rates or cashflows.

It is useful for an investor to know how much their investment will be and also to know about the time they it would take for the expected return.

Here, individual currently has $20,000 which means that current value is $20,000 and this individual needs $30,000. Here, future value is $30,000 and intends to save $100 per month in order to reach the future value.

Using financial calculator, we can make necessary changes.

We will set it to the end because usually payments occur at the end of the month.

Set : end.

N=?

The “n” over here is number of months,

I/Y = 0.5%

PMT = 100

PV = 20,000

FV = 30,000

CPT (press compute)

We get the value of “n” = 44.74 months, which is approximately 45 months.

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When lowe's builds its home improvement stores in australia and other countries, this level of international business is called ______.

Answers

Answer:direct investment

Explanation:

At the point when Lowe's fabricates its home improvement stores in Australia and different nations, this degree of worldwide business is classified "foreign direct investment" (FDI).

Foreign direct investment alludes to the venture made by an organization from one country into business tasks situated in another country. For this situation, Lowe's, which is a U.S.- based organization, is straightforwardly effective money management its assets, capital, and mastery to lay out and work home improvement stores in Australia and different nations.

FDI permits organizations like Lowe's to extend their market presence universally, tap into new client bases, and make the most of learning experiences in unfamiliar business sectors. It likewise empowers the host nations to profit from expanded open positions, innovation move, and monetary improvement coming about because of the presence of a global company.

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