Automobile producer would see profit reduced the most and janitorial services would be least affected.
Explanation:
Recession is one of the phases of the trade cycle. In this phase of the trade cycle, there is downfall in the production, consumption, investment and saving in the economy. The growth rate of the economy sees a downfall in this phase.
Among the examples given here, automobile producer is the firm which would be one of the most affected company during the time of recession because it is not something essential but luxury.
An automobile producer is most likely to see reduced profits during a recession, while a manufacturer of boots and shoes is the least likely. The janitorial service may experience a moderate impact. Recessions cause cyclical unemployment, whereas industry changes or relocations lead to structural unemployment.
The firm likely to see its profits reduced the most in a recession is the automobile producer, since automobiles are expensive, durable goods that consumers often delay purchasing during economic downturns. On the contrary, a manufacturer of boots and shoes is likely to see the least reduction in profits as these items are essential and need to be replaced periodically irrespective of the economic climate. Lastly, a janitorial service may experience a moderate impact since cleanliness is essential for health and safety, yet businesses might reduce the frequency of services to cut costs.
Recessions lead to job losses, creating cyclical unemployment. For example, landscapers laid off due to a drop in new housing construction during a recession is a classic instance of this type of unemployment. Coal miners laid off due to new EPA regulations represent structural unemployment, as the industry changes in response to new legislation. The financial analyst moving to Arizona is an example of frictional unemployment, arising from normal labor turnover and job-seeking activities. Printers and factory workers who lose their jobs due to changing industry conditions or relocation of production are also examples of structural unemployment.
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Answer:
Explanation:
2018 Financial Statement
Income Statement :
Amount of recognized revenue = 3/12 * $54,000
Cr Income statement $13,500
Dr Cash/ Bank Account $13,500
Balance Sheet :
Dr. Bank Account -$54,000
Cr Retained earning -$13,500
Cr Deferred Income -$40,500
Statement of Cash Flow :
Cr Operating income $13,500
Cr Increase in payable(deferred income) $40,500
Revenue to Recognize in 2019
Cr Income Statement $40,500
Dr. Deferred Income $40,500
Answer:
The answer is Systems Proposal.
Explanation:
Answer:
The correct word for the blank space is: Systems Proposal.
Explanation:
In computer science, the Systems Proposal is a second step on a project that outlines the features, benefits, costs, alternatives, and a step-by-step schedule of the software that is intended to be developed. All the information is gathered in a document that has the intention to promote the production of the software, thus, the Systems Proposal mainly provides the core information and highlights benefits over costs without hiding anything relevant.
Answer:
Blume's formula combines the geometric and arithmetic means of an asset to be able to predict its returns in a given period.
The formula is;
= Geometric Mean*(T-1)/(N-1) + Arithmatic Mean *(N-T)/(N-1)
Where;
T = Period in question
N = Total period
10 years
= 8.3%*(10-1)/(90-1) + 10.3%*(90-10)/(90-1)
= 10.1 %
25 years
= 8.3%*(25-1)/(90-1) + 10.3%*(90-25)/(90-1)
= 9.76%
30 years
= 8.3%*(30-1)/(90-1) + 10.3%*(90-30)/(90-1)
= 9.65%
Answer: Please refer to Explanation
Explanation:
Foreign Direct Investment refers to the establishment of a company in a country by a foreign company or the acquisition of a company by a foreign company. The main thing to note is that the foreign company is involved DIRECTLY in the running of the newly established or acquired company.
Foreign Portfolio Investment however, is investing in another country by means of purchasing shares, bonds or other financial instruments from that country.
Therefore we can then classify the above accordingly,
Buying bonds issued by a foreign government. FOREIGN PORTFOLIO INVESTMENT.
Opening up a factory in a foreign country. FOREIGN DIRECT INVESTMENT.
An individual investor is more likely to engage in foreign direct investment than a corporation. FALSE.
Foreign Direct Investment would simply be too expensive for the average individual to engage in. It is way more likely to be a Corperation.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
The diluted earnings per share for Garfun, Inc. considering the income and preferred dividends, the income from Simon, Inc. given the tax rate, and the potentially diluted convertible bonds from Simon, Inc., it comes out to be $6.58.
Calculating diluted earnings per share (EPS) involves accounting for any securities or methods that could potentially dilute the EPS, such cy as convertible bonds. In this scenario for Garfun, Inc., first, we need to address Garfun's net income (exclusive of investment income). This is given as $480,000. However, they pay preferred dividends of $15,000, which are subtracted from net income when calculating EPS, so we’ll use $465,000 as the income available to common stockholders.
Moving on to Simon, Inc., as Garfun owns all of the stock of Simon, the earnings of Simon will fully contribute to the diluted earnings of Garfun. Taking the reported net income of Simon ($290,000) and adjusting for the 30% tax rate, we get $203,000.
Furthermore, the potentially dilutive securities are the convertible bonds from Simon, Inc. These bonds can be converted into 30,000 shares of common stock ($100 bonds * 3). The interest paid for these convertible bonds, $80,000, is added back to the net income after being adjusted for the tax rate of 30% which is $56,000.
The total of earnings available for common stockholders for the diluted EPS calculation is, therefore $724,000 ($465,000 of Garfun’s net income + $203,000 of Simon’s net income + $56,000 interest on Simon’s bonds adjusted for tax). We also need to account for all the common stocks where earnings will be distributed. This amounts to 110,000 shares (80,000 of Garfun’s shares + 30,000 shares of Simon’s bonds). Hence, the diluted EPS is $6.58 ($724,000 / 110,000).
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Answer:
$9,725,000
Explanation:
The total cash received on the issue date is made of 95% of the bond's face value of $10,000,000 plus the three-month interest up to April 1 2017.
95% of face value=95%*$10,000,000=$9,500,000
three month interest accrued=$10,000,000*9%*3/12=$225,000
Total cash proceeds from bond issue=$9,500,000+$225,000
Total cash proceeds from bond issue=$9,725,000