All categories

2 years ago

How do financial institutions affect your own budget?

1 answer:

5 0

Financial institutions set the rates and expenses people pay to borrow money. These rates impact our budgets based on how much people borrow. They set similar rates on certain assets.

You might be interested in

On January 1, 2017, a subsidiary sold equipment to its parent for $520,000. The subsidiary's original cost was $200,000 and as o

Mnenie [13.5K]

Answer:

C. $340,000

Explanation:

Compute the Subsidiary's Unrealized Profit

This will help to determine, this will help us get the amount by which the Equipment Account will be reduced.

First, we calculate the Unrealized profit made on selling of the equipment

The equipment was sold for $520,000

The original cost to the Subsidiary was $200,000.

Furthermore, the Accumulated Depreicaiton of the Asset = $20,000

The Net Book Value of the Equipment = Cost - Accumulated Depreciation

The Net Book Value = $200,000 - $20,000 = $180,000

The Profit on Sale of the Equipment

= Sales Value - The Net Book Value

= $520,000 - $180,000 = $340,000

7 0

2 years ago

The net sales and the number of employees for aluminum fabricators with similar characteristics are organized into frequency dis

Solnce55 [7]

Answer:

a) For net sales: Z = - 0.4

For number of employees: Z = 2.92

b) Lacation of the two Z values: see the pitcture attached

c) - Clarion's sales are less than the average sales of other fabricators

- Clarion's number of employess is greater than the average number of employees of the other fabricators.

Explanation:

For the net sales, the mean is $180 million and the standard deviation is $25 million.

For the number of employees, the mean is 1,500 and the standard deviation is 120.

Clarion Fabricators had sales of $170 million and 1,850 employees.

a. Convert Clarion’s sales and number of employees to z values. 

The Z-value or Z-score of a normal variable is the normalized mean. It tells how many standard deviations a value is away from the mean.

The formula to calculate the Z-value is

$Z-value=\dfrac{x-\mu}{\sigma}$

Where:

x is the value of the variable
μ is the mean
σ is the standard deviation

For the net sales:

$Z-value=\dfrac{\$170-\$180}{\$25}=-0.4$

For number of employees:

$Z-value=\dfrac{1850-1500}{120}=2.92$

b. Locate the two z values.

The graph of the standardized normal distribution is a bell-shape curve, with the Z=0 value as the axis of symmetry, this is the central value. The negative values are to the left of the axis of symmetry and the positive vaule are to the right of the axis of symmetry.

Thus, Z = - 0.4 is to the left of Z = 0, and Z = 2.96 is to the right.

I have attached a figure with both Z-values located. Look at the attached pitcures.

c. Compare Clarion’s sales and number of employees with those of the other fabricators

Since the Z-value for the net sales is negative (-0.4), the net sales of Clarion are less than the average sales of the other fabricators. If you look at the cummulative distribution in a table, z = - 0.4 means that 34.46% of the other fabricators have lower net sales.

Since the Z-value for the number of empolyees is positive (2.92), the number of employees of Clarion is greater than the average number of employees of the other fabricators. Looking at a table of cummulative probabilityz = 2.92 means that 99.83% of the fabricators have less employees than Clarion.

7 0

2 years ago

g The budgeted production of Capricorn, Inc. is 15 comma 000 units per month. Each unit requires 30 minutes of direct labor to

Bond [772]

Answer:

D. $525,000

Explanation:

budgeted production = 15,000 units/month

unit production time required = 30 minutes => 0.5 hours

direct labor rate = $70 per hour

Budgeted cost of direct labor for the month = 15,000 * 0.5 * 70

= $525,000

8 0

2 years ago

Business analysis is difficult from operational databases. Which of the following is a reason, why? a. Every department has its

Viefleur [7K]

Answer: c. All of these

Explanation:

Business analysis is difficult from operational databases for quite a number of reasons which include but are not limited to:

i. Every department having its own method for recording data - there is a misalignment of data definitions across differnent departments which means that users might not be able to compare data effectively.

ii. Data standards not applying across departments - Different departments usually use different formats to record data again making comparison difficult.

iii. The data, if available, often being incorrect or incomplete - missing data across departments due to lack of set standards can again make comparisons difficult.

Therefore all of the options are correct.

3 0

2 years ago

Wood County Hospital consumes 1,000 boxes of bandages per week. The price of the bandages is $35 per box, and the hospital opera

Paul [167]

Answer:The extra cost is$ 0.72

Explanation:

Using the formula √2DCO/CC

Where CO = ordering cost per order

D = Demand per annum

CC = carrying cost or holding cost per annum

Demand = 1000*52 = 52,000 per annum

ordering cost = $15 per order

Holding Cost = 15/100*52,000 = 7,800 per annum

√2DCO/CC

√2*15*52,000/7,800

√1,560,000/7,800

√200

= $14.14

Extra Cost wiil be

900*52 = 46,800 per annum

√2*15* 46,800/7,800

√1,404,000/7,800

√180

13.42

Therefore the extra cost is

14.14 - 13.42

= $0.72

6 0

2 years ago