The following income statement data for A T&T Inc. and Verizon Communications Inc. were taken from their recent annual reports (in millions):
_____________________________ T&T _______________ Verizon
Revenues ............................ $132,447 ..................... $127,079
Cost of services (expense) ......... (60,611) ...................... (49,931)
Selling and marketing expense .... (39,697) ...................... (41,016)
Depreciation and other expenses ... (20,393) ...................... (16,533)
Operating income ................... $ 11,746 ...................... $ 19,599
a. Prepare a vertical analysis of the income statement for AT&T. (Round to one decimal place.)
b. Prepare a vertical analysis of the income statement for Verizon. (Round to one decimal place.)
c. Based on Requirements A and B, how does AT&T compare to Verizon?

Answers

Answer 1

Answer:

a. See the explanation below.

b. See the explanation below.

c. we have:

1. AT&T's Cost of services (expense) is 6.47% greater than Verizon's.

2. AT&T's Selling and marketing expenses is 2.30% less than Verizon's.

3. AT&T's Depreciation and other expenses is 2.39% greater than Verizon's.

4. AT&T's Operating income is 6.55% less than Verizon's.

Explanation:

The income statement vertical analysis is done by dividing each of the line item in the income statement by the revenue and then multiply by 100. That is:

Income statement vertical analysis formula = (Line item / Revenue) * 100 ...... (1)

Using equation (1), we can now proceed as follows:

a. Prepare a vertical analysis of the income statement for AT&T. (Round to one decimal place.)

This can be presented as follows:

AT&T

Vertical Analysis of the Income Statement

Particulars                                              $'Million               (%)    

Revenues                                               132,447              100.00

Cost of services (expense)                    (60,611)                45.76

Selling and marketing expense            (39,697)              29.97

Depreciation and other expenses        (20,393)              15.40

Operating income                                     11,746                 8.87

b. Prepare a vertical analysis of the income statement for Verizon. (Round to one decimal place.)

This can be presented as follows:

Verizon

Vertical Analysis of the Income Statement

Particulars                                              $'Million               (%)    

Revenues                                                127,079            100.00

Cost of services (expense)                     (49,931)             39.29

Selling and marketing expense              (41,016)             32.28

Depreciation and other expenses         (16,533)              13.10

Operating income                                    19,599              15.42

c. Based on Requirements A and B, how does AT&T compare to Verizon?

This can be done as follows:

AT&T and Verizon

Comparison of the Vertical Analysis of the Income Statement

Particulars                                        AT&T  (%)        Verizon (%)      Diff. (%)    

Revenues                                             100.00             100.00            0.00

Cost of services (expense)                   45.76               39.39             6.47

Selling and marketing expenses         29.97              32.28            (2.30)

Depreciation and other expenses       15.40                13.10              2.39

Operating income                                  8.87                15.42            (6.55)

Note that Diff (%) is AT&T (%) minus Verizon (%)

From the above, we have:

1. AT&T's Cost of services (expense) is 6.47% greater than Verizon's.

2. AT&T's Selling and marketing expenses is 2.30% less than Verizon's.

3. AT&T's Depreciation and other expenses is 2.39% greater than Verizon's.

4. AT&T's Operating income is 6.55% less than Verizon's.


Related Questions

Which of these are functions of an entrepreneur?
providing loans to small and large businesses
providing services to the society without any goals to earn profits
offering value to consumers through products and services
contributing to the government’s revenue in the form of taxes

Answers

Answer:

offering value to consumers through products and services

Explanation:

Entrepreneurs provide goods and services

questions What do you see as the main difference between a successful and an unsuccessful decision? How much does luck oues versus Skill have to do with it?​

Answers

Answer:

Explanation:

the difference between a successful and an unsuccessful decision is with a successful decision you would be successful and make profit since this is the subject of business and an unsuccessful decision will make you lose profit and make you lose into Investments.  there is no luck vs skill this is all skill actually.  skill has to do with this because you need to have certain experience in a certain thing to be having a successful decision.  

4) (Economies of Scale) Suppose a firm has chosen its quantity so that its marginal cost is equal to the market price, and is making positive profits because its revenues exceed its costs. Is this firm operating in a range where it production exhibits economies of scale or diseconomies of scale

Answers

Answer:

The firm is operating in a product range that exhibits diseconomies of scale. A further explanation is given below.

Explanation:

The company operates within a target area where there have been efficiency gains throughout production. Since the company makes benefits and opportunities, which means that the profitability outweighs the amount, the price could perhaps outweigh the estimated price at either the amount of development. As well as the valuation is equivalent to the cost, and marginal cost should therefore significantly increase the overall value.Researchers understand exactly this because when market forces are already in place, marginal cost is already below the estimated price, such that, marginal cost would be below the estimated price. After all, once government subsidies have been in place because when efficiency gains are in place, marginal cost should be above total value, which indicates that sometimes marginal cost exceeds average cost whenever economies of level have been in place.

Choose a company that is currently listed on the Australian Stock Exchange and whose conduct is being considered by the Royal Commission mentioned above. Discuss whether your chosen company adheres to the principles of good corporate governance. Give reasons for your answer, including examples of good or poor corporate governance exhibited by your chosen company.

Answers

Answer:

Rio Tinto is an Australian Company for metal and mining. The company founded in 1873 and it has headquarter in London and has a corporate office in Melbourne.

Explanation:

Corporate Governance is the standards for process and practices in the organization. The standards deal with the application of certain rules in the business scenarios. The application of corporate governance in the company is not only on management but it is also on employees. Rio Tinto adopts corporate governance practices in its organization and all the management follows the good corporate governance practices. The company has also listed its compliance statements on its website. The company abide by all the good corporate governance practices. The CEO and CFO of the company are two separate personnel which is good corporate governance practice. There is segregation of duties in company.

Sheila Williams, a medical secretary, earns $2,437 monthly for a 34-hour week. For overtime work, she receives extra pay at the regular hourly rate up to 40 hours and time and one-half beyond 40 hours in any week. During one semimonthly pay period, Williams worked 10 hours overtime. Only 2 hours of this overtime were beyond 40 hours in any one week. Compute the following amounts:

a. The regular semimonthly earnings
b. The overtime earnings
c. The total earnings

Answers

Answer:

a. The regular semimonthly earnings

regular semimonthly earnings = [34 hours + 34 hours + (10 hours - 2 hours)] x [$2,437 / (34 hours x 4)] = 76 hours x $17.92/hr = $1,361.85

b. The overtime earnings

overtime earnings = 2 hours x [$2,437 / (34 hours x 4)] x 1.5 = $53.76

c. The total earnings

total earnings = $1,361.85 (regular earnings) + $53.76 (overtime earnings) = $1,415.61

Home Realty, Incorporated, has been operating for three years and is owned by three investors. J. Doe owns 60 percent of the total outstanding stock of 9,000 shares and is the managing executive in charge. On December 31, the following financial items for the entire year were determined: sales revenue, $166,000; salaries and wages expense, $97,000; interest expense, $6,300; advertising expenses, $9,025; and income tax expense, $18,500. Also during the year, the company declared and paid the owners dividends amounting to $12,000.

Required:
Prepare the company’s income statement.

Answers

Answer:

Net Income for the year is $23,175

Explanation:

The Company's income Statement is prepared below. In relation to the following please note that:

Total Revenue is considered Section A while Total Expense is Section B and the Net Income is the difference of the same (A - B).

Income Statement on December 31st:

HOME REALTY, CORPORATION

Income statement

For period ended December 31st

Revenue                                           $

Sales Revenue                             166,000  

Other Revenue                                   -  

Total Revenue (A)                             166,000  

Expenses:                                    $

Salaries and Wages Expense             97,000  

Interest Expense                                6,300  

Advertising Expenses                        9,025  

Income Tax Expense                        18,500  

Dividends                                        12,000

Total Expenses (B)                        142,825  

Net Income (A-B)                                 $23,175

When comparing two companies, we notice that they are very similar in setup (e.g., same costs, same profit margins, same inventory turnovers etc.). However, the time it takes company A to pay for raw materials is longer than it takes company B, while the time it takes customers of company A to pay for the finished goods is shorter than it takes company B's customers. Which of these companies has a shorter cash flow cycle?

a. Company B
b. They are both the same
c. Company A
d. Could be either, depending on the days in inventory

Answers

Answer:

The correct answer is the option D: Could be either, depending on the days in inventory.

Explanation:

To begin with, the term known as "Cash Flow Cycle" in the world of business refers specifically to the movement of cash inside the organization regarding the whole process of producing them and selling them to the target audience. It will obviously start with the purchase of the raw materials and everything needed for production and it will end with the complete sale of the final product.

Secondly, in this case the cash flow cycle will depend on the days that the products remain in inventory due to the fact that they both are even when it comes to the purchase and selling processes.

Consider the following process that makes customized suits. When an order is placed, measurement is taken, which takes 30 minutes to complete. After taking the measurement, materials are prepared and cut, and this takes one hour. Once the materials are prepared and cut, the materials are sewed. Sewing takes 2.5 hours on average per order. The process operates for 10 hours a day. The following picture summarizes the process.
1. What is the capacity of the process in [suits/day]?
2. Assume that the demand for the customized suit is 0.2[suits/hour]. What should the flow rate of the process be in [suits/day]?
3. Assume that the demand for the customized suit is 0.5[suits/hour]. What is the implied utilization (in %) of the Sewing stage?
4. Assume that the demand for the customized suit is 0.5[suits/hour]. What is the utilization (in %) of the Measuring stage?

Answers

Answer:

1. The capacity of the process

= 2.5 suits /day

2. The flow rate of the process = 2.5 suits/10 hours

= 0.25 suits per hour

3. The implied utilization of the Sewing stage = (0.5 * 150 minutes  * 4) 300 minutes = 5/10

=  50%

4. The utilization of the Measuring stage = (0.5 * 30 minutes  * 4) 60 minutes =  1/10

= 10%

Explanation:

a) Data and Calculations:

Time taken for the measurement of a suit = 30 minutes

Time for preparation and cutting of materials = 60 minutes (1 hour)

Time for sewing = 150 minutes (2.5 hours or 2 hours, 30 minutes)

Total time taken to make a suit = 4 hours

Available production time per day = 600 minutes (6 hours)

Therefore, 6/4 suits can be produced per day, this equals 2.5 suits.

Choose the three primary ledgers used in double-entry bookkeeping?

Accounts payable ledger*
Accounts receivable ledger
Bookkeeping software
General ledger
The chart of accounts
Journals

Answers

Answer:

General ledger

The chart of accounts

Journals

Explanation:

The general ledger contains all the transactions carried out and registered by the company.

The chart of accounts is lists and codes all the accounts that are used by the by the company, e.g. cash might be account 101.

The journal entries are the individual entries recorded in the general ledger or any other specific ledger.

Help please! Business questions

Answers

Answer:

1. National FFA.

2. DECA.

3. BPA

4. FEA (Educators Rising).

Explanation:

A career and technical student organization (CTSO) is an extracurricular group for students in CTE pathways to further their knowledge and skills by participating in activities, events, and competitions. The nine national CTSOs in the United States of America are;

National Future Farmers of America (National FFA). Distributive Education Clubs of America (DECA). Business Professionals of America (BPA). Health Occupations Students of America (HOSA) Family, Career, and Community Leaders of America (FCCLA). Future Business Leaders of America-Phi Beta LAMBDA (FBLA-PBLA). Technology Student Association (TSA). SkillsUSA. Future Educators of America (FEA).

1. Marilyn is a middle-school student who wants to prepare for a career in farming: Therefore, Marilyn should join the National Future Farmers of America (FFA) organization.

2. Janice is a high-school student who wants to start her own business: she should join the Distributive Education Clubs of America (DECA) because they prepare students for business management and administration.

3. Abe is a high-school student who wants to become an information technology worker: Thus, Abe should join the Business Professionals of America (BPA) because they train students on citizenship and leadership in career clusters such as information technology.

4. Rene wants to teach middle-school classes: Therefore, Rene should join the Future Educators of America (FEA) because they prepare students who are interested in teaching.

Answer:

1) National FFA!

2) DECA!

3) BPA!

4) FEA!

Explanation:

The Green Machine Manufacturing Company has the option to make or buy a component part for one of its lawnmowers. The annual requirement is 15,000 units. A supplier is able to supply the parts for $17.25 per piece. Green Machine estimates that it will cost $2,100 to prepare the contract with the supplier. To make the parts in-house, Green Machine must invest $100,000 in capital equipment. They estimate it will cost $11.00 per piece to produce the part in-house.
1) What is the breakeven quantity?
A) Less than or equal to 30,000
B) Greater than 30,000 but less than or equal to 35,000
C) Greater than 35000 but less than or equal to 40,000
D) Greater than 40,000 but less than or equal to 45,000
E) Greater than 45,000
2) What is the total cost at the breakeven point?
A) Less than or equal to $365,000
B) Greater than $365,000 but less than or equal to $370,000
C) Greater than $370,000 but less than or equal to $375,000
D) Greater than $375,000
3) If the demand is 25,000 units, should Green Machine make or buy the part?
A) Buy the part
B) Make the part
C) Both
D) Neither
E) Not enough information
4) What is the cost savings from making the correct decision?
A) Less than or equal to $20,000
B) Greater than $20,000 but less than or equal to $25,000
C) Greater than $25,000 but less than or equal to $30,000
D) Greater than $30,000 but less than or equal to $35,000
E) Greater than $35,000

Answers

Answer:

A) Less than or equal to 30,000

A) Less than or equal to $365,000

B) Make the part

E) Greater than $35,000

Explanation:

Capital equipment cost = $100000

Annual requirement = 15000

Supply cost per piece = $17.25

In-house production cost per piece = $11

Contract preparation cost = $2100

If quantity at beatk even = x

In-house production = purchase cost

100000 + 11x = 2100 + 17.25x

100000 - 2100 = 17.25x - 11x

97900 = 6.25x

x = break-even quantity = 15664

Cost at breakeven:

100000 + 11(15664)

= 272,304

If demand = 25000 units:

In-house production :

100000 + 11(25000) = 375000

Purchase cost:

2100 + 17.25(25000)

2100 + 431250 = $433,350

The correct decision is to make the part, it is cheaper

Amount saved:

$433,350 - $375,000 = $58,350

The President is considering the following policies, each of which is aimed at reducing violent crime byreducing the use of guns. In your report, illustrate each of these proposed policies in a supply-and-demanddiagram of the gun market, and explain whether the policy will have the desired effect on the gun market.
1. a tax on gun buyers
2. a tax on gun sellers
3. a price floor on guns
4. a tax on ammunition

Answers

Answer:

Option 1

Explanation:

The best method to reduce the consumption of any goods or service is to increase the price of the product or services to such an extent that buyers themselves prefer not to buy such good or service.

Hence, the government must put tax on gun buyers. The more tax is implied, the more the demand for guns will reduce as the buyers will not prefer to buy.

Hence, option 1 is correct

The ___________ ____ __________ Endorsement area includes a variety of specialization areas within the world of work such as Agriculture, Food and Natural Resources; Architecture and Construction; Arts A/V Technology and Communications; Business Management and Administration; Marketing, Sales and Service; Finance, Hospitality and Tourism; Information Technology; Manufacturing and Transportation and Distribution.

a. Science, Technology, Engineering,m & Mathematics
b. Business & Industry
c. Arts & Humanities
d. Public Services

Answers

Answer:

b. Business & Industry

Explanation:

STEM (or Science, Technology, Engineering & Mathematics) includes different types of engineering, computer science, mathematics, and other fields.

Arts and humanities include archaeology, history, literature, philosophy, etc.

Public services include journalism, education, healthcare, teaching, etc.

Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $202,600 Estimated machine-hours 2,000 Actual manufacturing overhead $194,600 Actual machine-hours 1,930 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The applied manufacturing overhead for the year is closest to:

Answers

Answer:

$195,509

Explanation:

The computation of the applied manufacturing overhead is shown below:

But before that the predetermined overhead rate is

= Estimated manufacturing overhead ÷ estimated machine hours

= $202,600 ÷ 2,000

= $101.30

Now the applied overhead is

= Actual machine hours × predetermined overhead rate

= 1,930 × $101.30

= $195,509

Countryside Corporation provides $6,000 worth of lawn care on account during the month. Experience suggests that about 2% of net credit sales will not be collected. In conformity with the expense recognition principle, the company should:

Answers

The company should record an estimate of Bad Debt Expense in the same period as the lawn care is provided

What is bad debt?

Bad debts are debt which customers are unlikely to pay back. They are debts which are deemed to be irrecoverable.

Also, In line with the standard of the expense recognition principle, states that incomes are documented when earned and expenses are documented when consumed.

Learn more about bad debt here : https://brainly.com/question/15345588

#SPJ1

On an automotive assembly line, Naif Marrot checks to make sure that recently painted car bodies are free of paint bubbles. Other people are assigned the task of seeing that other parts of the car are built to specifications. The task of building an automobile has been subdivided into a series of subtasks. The concepts of _____
have been employed in this situation.

(A) decentralization and unity of command

(B) product design and structured manufacturing

(C) functionalism and specialization

(D) centralization and product departmentalization

(E) specialization and division of labor

Answers

Option E. Specialization and division of labor

2. Meatball Corporation, a merchandising company, reported the following results for June. Number of units sold 6,700 Selling price per unit $600 Unit cost of goods sold $419 Variable selling expense per unit $62 Variable administrative expense per unit $30 Total fixed selling expense $126,200 Total fixed administrative expense $208,100 *Cost of goods sold is a variable cost in this company. 1) Prepare a traditional income statement for June.

Answers

Answer:

See below

Explanation:

Preparation of traditional income statement

Sales $600 × 6,700. $40,20,000

Less variable cost

Cool Beans is a locally owned coffeeshop that competes with two large coffee chains, PlanetEuro and Frothies. Alicia, the owner, is considering two different marketing promotions and thinks that CLV analysis will help her decide the best course of action. An average specialty coffee drink sells for $3.40 and has a margin of 65%. One promotion is providing loyalty cards to her regular customers that would give them one free specialty coffee drink after 10 regular purchases. Alicia estimates that this will increase the frequency of their purchases by 13%. Currently, her customers average buying 2 specialty drinks per week. The second promotion is targeted at new customers. She would offer a free specialty drink to incoming college freshmen by providing a coupon with their orientation packages. Because of her location near the college, she expects that 550 students will come to Cool Beans for a free trial. Of those, she anticipates that 18% will become regular customers who will purchase at least one specialty drink each week. The cost of printing and distributing the coupons is $115.
What is the CLV of a customer over the time horizon of one year prior to introduction of the loyalty program?

Answers

Answer:

Cool Beans

The CLV of a customer over the time horizon of one year prior to the introduction of the loyalty program is:

=  $353.60

Explanation:

a) Data and Calculations:

Price of average specialty coffee drink = $3.40

Profit Margin = 65%

Profit Margin = $2.21 ($3.40 * 65%) per drink

Average drinks per customer per week = 2

Total drinks in a year = 104 (2 * 52)

Profit Margin in a year = $229.84 ($2.21 * 104)

Therefore, the Customer Lifetime Value = Gross Revenue

= $3.40 * 2 * 52 = $353.60

b)  The Customer Lifetime Value (CLV) is the average purchase value multiplied by the average purchase frequency rate.  In this customer's case, the CLV is calculated for only one year and not actually for a lifetime.

The___ shows your company's equity.
A.) Invoice
B.) Profit & loss statement
C.) income statement
D.) Balance Sheet

Answers

Answer:

D

Explanation:

You are correct it is balance sheet :)

Answer:

D. Balance Sheet

Explanation:

The May transactions of Hanschu Corporation were as follows.

May 4 Paid $600 due for supplies previously purchased on account.
7 Performed advisory services on account for $6,500.
8 Purchased supplies for $800 on account.
9 Purchased equipment for $1,000 in cash.
17 Paid employees $500 in cash.
22 Received bill for equipment repairs of $800.
29 Paid $1,100 for 12 months of insurance policy. Coverage begins June 1.

Required:
Journalize the transactions.

Answers

Answer and Explanation:

The journal entries are as follows:

On May 4

Account  payable $600

        To cash $600

(Being cash paid is recorded)

On May 7

Account  receivable $6,500  

       To service revenue $6,500

(being service on account is recorded)

On May 8

Supplies $800  

       To Account payable $800

(being supplies purchased on account)

On May 9

Equipment $1,000  

        To cash $1,000

(being cash paid)

On May 17

Salary expense $500

         To cash $500

(being cash paid)

On May 22

Repair expense $800  

        To Account payable $800

(Being received bill for repairing of an equipment is recorded)

On May 27

Prepaid rent $1,100

         To cash  $1,100

(Being cash paid is recorded)

Toyna Recruitz is an organization that allows its employees to work from home. Most of the interaction between the employees and the organization takes place through email. Moreover, the organization is able to maintain increased employee performance and satisfaction. Identify the work option offered by Toyna Recruitz to its employees.

Answers

Answer:

I DONT KNOW

Explanation:

BRANLIEST PLEASE, THIS ANSWER WORKS

An accounts payable program posted a payable to a vendor not included in the online vendor master file. A control that would prevent this error is a:___.
A. Validity check.
B. Parity check.
C. Range check.
D. Reasonableness test.

Answers

Answer:

Option A: Validity check

Explanation:

Data are commonly known as facts and figures or a set of values, measurements or records of transactions that are raw and unprocessed while Information are data which has undergone processing thereby giving it a new meaning.

Data entry controls includes Field check, sign check, limit check, range check, validity check e.t.c.

Validity Check is simply known as an edit test. It is one where the use of an identification number or transaction code is compared with a table of valid identification numbers or codes that is stored or maintained in computer memory.

All financial statements:_________
a) help to evaluate what happened in the past.
b) provide a picture of the company at a moment in time.
c) describe changes that took place over a period of time.
d) contain the most up to date information about the company.

Answers

Answer:

a) help to evaluate what happened in the past.

Explanation:

The financial statement interprets the financial performance, profitability, position of the company. It involves the income statement, balance sheet, cash flow statement, etc through which the business could be analyzed in a better way

Also it helps to analyze and evaluate what is happened in the past

Therefore the option a is correct

A local manufacturing business has announced that it will be closing its factory in your area and opening a new factory outside of the US. In one or more fully formed paragraphs, weigh the advantages and disadvantages of this action to your community, the business, and/or the global economy. Identify at least three advantages and three disadvantages. Do you support this change

Answers

Answer:

The disadvantages are in the first paragraphs and the advantages are in the second paragraphs.

Explanation:

One the one hand, the fact that the company has decided to close the local factory and open another one abroad indicates a serious of factors to have in mind when it comes to the community and the local area. To start, the local area will be affected obviously by this decision by losing jobs and also by losing money that will not longer be injected in the economy. Moreover, the business itself will have to do it all over to find new employers and calculate every cost and every aspect of the new factory abroad. And finally, in terms of the global economy this decision will affect as well the interaction that the company will now have from outside when it comes to doing business with local companies.

On the other hand, the decision will also bring advantages. When it comes to the business, the most quickly thought is that they will be able to lower the cost of producing if the choose a good country. In the case of the global economy this will also improve the movement of money from one country to another and more important the rise of new jobs in another place abroad. And finally, for the local community the most quickly advantage could be the case of the reduction in the polution of the area regarding the fact that the company is no longer working there.

Which of the following are degrees of conflict:

specific
mild difference
disagreement
litigation

Answers

Answer:

Answer is Mild difference.

Explanation:

I hope it's helpful!

Your answer is going to be mild difference

A major argument of the podcast is that corporations have the power to change their employee's behaviors and even how they see the world, and that's how they can achieve social change- at a grassroots level. How does this relate to your own understanding of business ethics, and do you think it makes sense to look at corporate's capacity for global change at this level? Why or why not?

Answers

The correct answer to this open question is the following.

This can relate to my own understanding of business ethics in that corporations do really have a certain influence on employee's behaviors, but up to the point of reference or comparison. Employees have their own belief systems inherited by parents, family, and primary groups of reference.

It could make sense to look at corporate's capacity for global change at this level if the leaders are truly committed to sharing positive values that not only impact the workplace but can be extended to all areas of life.

Indeed, the workplace is where most people spend most of the time during the week. So it would be good that corporate leaders could create the kind of corporate culture in which employees feel comfortable, listened to, and appreciated.

If this is the case, corporations really can have a certain influence on employee's behaviors. Unfortunately, in most corporations, employees can see their leaders setting the example. On the contrary, these leaders are the ones that first break the rules and behave in different or questionable ways.

The Fisher equation tells us that the real interest rate approximately equals the nominal rate minus the inflation rate. Suppose the inflation rate increases from 3% to 5%. Does the Fisher equation imply that this increase will result in a fall in the real rate of interest

Answers

The Fisher equation does not imply that the increase in inflation will result in a fall in the real rate of interest.

The Fisher equation states the nominal interest rate in the sum of inflation rate and the real interest rate

(1 + nominal interest rate) = (1 + real interest rate) x (1 + inflation rate)

Based on the above equation, an increase in inflation rate would lead to a rise in the nominal interest rate. The real interest rate is taken as given in the equation and it is not affected by changes in inflation rate. If inflation rate increases from 3% to 5%, the nominal rate of interest would increase by about 2%.

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Your parents will retire in 14 years. They currently have $290,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Do not round intermediate calculations. Round your answer to two decimal places.

Answers

Answer:

9.24%

Explanation:

This problem is easily solved through a financial calculator.

Just plug into your calculator N=14 PV=290,000 FV= -1,000,000 i=??

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Brooke has a sign company. She creates colorful signs for birthday parties that can be placed outside of the front door to announce a birthday or welcome birthday party guests. She only advertises on social media. Customers go to her website and place an order, and Brooke delivers a hand-painted sign. Brooke uses social media for all of the following reasons EXCEPT _______.

a. she can respond to requests for birthday events in real time.
b. she can use local network television affiliates to push her message out to a mass audience.
c. she can establish meaningful connections with customers and get references
d. she can engage customers in their products and services

Answers

She can make use of the local networks and the TV. Hence answer B is correct.

What does Brooke company creates ?

Brooker company creates colorful signs for birthdays and parties. These can be replaced outside the front doors and to announce the birthday party welcome for the guests. She is advertising the presence in social media and the people can visit her website and directly place an order.

As Brooker has a sign company she can easily make use of the time and make birthday decorations for friends and family.

They could easily get access to the website and place orders for the appropriate products and thereby get them delivered within no time. She can thus make use of social media, tv, and even the locality.

Find out more information about the Brooker sign company.

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As soon as products are completed, their product costs are transferred from Raw Materials Inventory to Finished-Goods Inventory. True False

Answers

Answer:

True

Explanation:

In the case when the products is completed in all respects so here the product cost that involved direct material cost, direct labor cost, and overhead cost from raw material inventory would be transformed to the finished goods inventory

Therefore the given statement is true

hence, the correct option is first

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