Answers
Answer:
vertical integration
Explanation:
The plant owners would have to adopt a vertically integrated organization because the plant is not redeployable to other uses and is dependent on the supply chain/complementary assets. Vertical integration occurs when an organization owns and controls it's distribution or supply chain in order to maximise profits and reduce costs or inefficiency. By controlling the supply chain, the chain of distribution of the coal mine tonnage can be improved in terms of efficiency and value in revenue.
Related Questions
Managerial accountants could prepare all of the following reports except a.a sales report targeting monthly sales and potential bonuses b.a performance report identifying amounts of scrap c.a control report comparing direct material usage over time d.an annual report for external regulators such as the SEC
Task 1: Careers and Educational Requirements Perform online research and choose a career in the financial services industry. Determine the education you will need to prepare for this career. Task 2: Certification RequirementsFor your chosen career, identify the certification or licensing required. Develop a strategy to prepare for certification.Task 3: Information Technology and Interpersonal SkillsFor your chosen career, describe the skills you will need to learn and develop.
Which country is the biggest consumer of Virginia's services?A.CanadaB. GermanyC. MexicoD. United Kingdom
Estimating Share Value Using the DCF Model Following are forecasts of Whole Foods sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of September 25, 2016.Reported Horizon Period$ millions 2016 2017 2018 2019 2020 Terminal PeriodSales $15,724 $15,881 $16,199 $16,523 $16,853 $17,022NOPAT 526 524 535 545 556 562NOA 3,466 3,500 3,570 3,642 3,715 3,752Answer the following requirements assuming a discount rate (WACC) of 6%, a terminal period growth rate of 1%, common shares outstanding of 318.3 million, and net nonoperating obligations (NNO) of $242 million.(a) Estimate the value of a share of Whole Foods' common stock using the discounted cash flow (DCF) model as of September 25, 2016.Rounding instructions:Round answers to the nearest whole number unless noted otherwise. Use your rounded answers for subsequent calculations.Do not use negative signs with any of your answers.Reported Forecast Horizon($ millions) 2016 2017 2018 2019 2020 Terminal PeriodIncrease in NOA Answer Answer Answer Answer AnswerFCFF (NOPAT - Increase in NOA) Answer Answer Answer Answer AnswerDiscount factor [1 / (1 + rw)t ] (Round 5 decimal places) Answer Answer Answer AnswerPresent value of horizon FCFF Answer Answer Answer AnswerCUMULATIVE present value of horizon FCFF $ AnswerPresent value of terminal FCFF AnswerTotal firm value Answer NNO AnswerFirm equity value $ AnswerShares outstanding (millions) Answer (Round one decimal place)Stock price per share $ Answer (Round two decimal places)(b) Whole Foods stock closed at $30.96 on November 18, 2016, the date the 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? What do you believe are some reasons for the difference?A. Stock prices are a function of many factors. It is impossible to speculate on the reasons for the difference.B. Our stock price estimate is only a few cents lower than the Whole Foods market price, indicating that we believe that Whole Foods stock is accurately priced. Our stock price estimate is lower than the Whole Foods market price, indicating that we believe that Whole Foods stock is overvalued.C. Stock prices are a function of expected NOPAT and NOA, as well as the WACC discount rate. Our lower stock price estimate might be due to more optimistic forecasts or a lower discount rate compared to other investors' and analysts' model assumptions.D. Our stock price estimate is lower than the Whole Foods market price, indicating that we believe that Whole Foods stock is undervalued. Stock prices are a function of expected NOPAT and NOA, as well as the WACC discount rate. Our lower stock price estimate might be due to more optimistic forecasts or a lower discount rate compared to other investors' and analysts' model assumptions.
Answers
Answer: The answer is as follows:
Explanation:
Price of basket in year one = $8
Price of basket in year two = $7
So, from year one to year two there is a fall in the price level which means that there is deflation in the economy at an annual rate of :
=
= -12.50%
In year one, $40 will buy = 5 Baskets
In year two, $40 will buy = 5.71 Baskets
Value of money =
Hence, this example illustrates that, as the price level falls, the value of money increases.
Answers
Answer:
The airline company is considering buying the aircraft components in house or outsourcing it from other foreign countries.
Explanation:
A company can outsource the product manufacturing or can manufacture its own products. The manufacturing of a product in house will be according to the requirements and customization can be done but on the other hand it will require equipment and manufacturing line setup on the site which incurs heavy cost. Buying product from outside will save incurring heavy fixed costs.
c. Outstanding checks at August 31 totaled $1,870.
d. Interest credited to the account during August but not recorded on the company's books amounted to $115.
e. A bank charge of $37 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $625 had been recorded as a disbursement of $367.
g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,356.
Required:
Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.
Answers
Answer:
Part a.
No entry
Part b.
Debit : Deposits in Transit $1,247
Credit : Bank Reconciliation Statement $1,247
Increase the Bank Statement Balance
Part c.
Debit : Bank Reconciliation Statement $1,247
Credit : Out Standing Checks $1,870
Decrease theBank Statement Balance
Part d.
Debit : Cash $115
Credit : Interest received $115
Interest credited in Bank Statement not recorded
Part e.
Debit : Bank Charges $37
Credit : Cash $37
Recording of Bank Charges in the Books
Part f.
Debit : Accounts Payable $258
Credit : Cash $258
Payment to Supplier understated by $258
Part d.
No entry
Explanation:
Corrections and Adjustments may be either to correct the Cash Book or the Bank Statement Balance as above.
Answers
The payment to be received on July 15 should be equivalent to $800.
What are payments?
The amount received for the purpose served or promised to be served by a seller is known as a payment. Generally, discounts are offered for making early payments.
The discount offered for a period of 30 days cannot be redeemed for payment done within 15 days.
Thus, option D holds true that the payment of $800 shall be received on July 15.
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Final answer:
The terms 1/10, net 30, mean that the company is offered a 1% discount if they pay within 10 days. If they pay after this period, they have to pay the full amount. In this scenario, the payment on July 15 should be $800.
Explanation:
The invoice terms 1/10, net 30 mean that the company is offered a 1% discount if they pay the invoice within 10 days. After 10 days, the full invoice amount is due within 30 days. On July 1, the company receives an invoice for $800. If the company pays by July 10, they would only need to pay $792 ($800 - 1% of $800). If they wait until July 15, past the discount period, they will have to pay the full $800. Therefore the answer is $800.
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Answers
Answer:
L. Lyons Company
Correct Journal Entry
Debit L.Lyons, Drawings $100
Credit Cash $100
To record the cash withdrawn by L. Lyons for personal use.
Explanation:
When the owner, L. Lyons, withdraws cash for personal use, it reduces the owner's equity interest in the business. Cash as an asset is also reduced by the same amount. Therefore, the double entry should be a debit to the Owner's Capital account (here represented by Drawings) and a credit to the Cash account.
Final answer:
L. Lyons withdrawal of $100 would be treated as an owner's draw, reflecting a decrease in the company's assets. A journal entry would debit the owner's draw account and credit the cash/bank account.
Explanation:
When L. Lyons withdrew $100 for personal use, this would have been treated as an owner's draw and should be reflected in the financial records of the business. A correct journal entry would involve debiting the owner's draw account and crediting the cash or bank account. Why? The money is going out of the business (hence a decrease in the company's assets), and it's going towards the owner, so it's an owner's draw. So, the journal entry would look as follows:
- Debit: Owner's Draw $100
- Credit: Cash/Bank $100
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Answers
Answer:
Dynamic capability
Explanation:
Dynamic capability is a situation when a company has the ability to use all environmental factors effectively to meet the current changing world.
It is a situation where company has become proficient in modifying, upgrading, or deepening the company's resources and capabilities in response to its changing environment and market opportunities.
The firm uses both the internal and external factors to its benefit while suiting the changing environment.