Assume the spot market exchange rate for $1 is currently A$1.1904. The expected inflation rate is 3.3 percent in Australia compared to the U.S. rate of 2.8 percent. What is the expected exchange rate one year from now if relative purchasing power parity exists?a. $1.1844
b. $1.2062
c. $1.1964
d. $1.2286

Answers

Answer 1
Answer:

Answer: c. $1.1964

Explanation:

The Expected Rate is calculated as follows,

Expected Rate = ((1+ Australia inflation rate)/(1+ U.S inflation rate)) *spot rate

Plugging in the figures therefore we will have,

Expected Rate = ((1+0.033) / (1 + 0.028)) * 1.1904

Expected Rate = $1.1964

$1.1964 is the expected exchange rate one year from now if relative purchasing power parity exists.

Answer 2
Answer:

Answer:

Expected exchange rate $1 = A$1.1962

Explanation:

The purchasing power parity theory states the future spot rate and and he current spot exchange rate between two currencies can be linked to the relative inflation rate between the two currencies. This also known as the law of one price.

The model is given as follows:

S = So× (1+Fc)/(1+Fh)

Fc -  inflation rate in Australia - 3.3

Fh- Inflation rate in the US- 2.8

S- Future spot rate- ?

So- Current spot rate- A$1.1904

Expected exchange rate one year from now

= 1.1904× (1.033)/(1.028)

= 1.19618

= A$1.1962


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A machine does three setups per production cycle. Each setup takes 20 minutes. The processing time is 0.5 minute. What batch size achieves a capacity of 24 units per hour

Answers

Answer: A batch size of 30units

Explanation:

The set up time is given as 20 Minutes per production cycle, Production cycle  for the machine has 3 cycles

Therefore  the set uo time for the cycles = 20 mins x 3= 60 minutes

Processing time = 0.5 minutes

Capacity = 24units per hour , changing to minutes we have

24 units / 60 minutes = 6/ 15 = 2/5 = 0.4 minutes

Capacity = Batch size / Set up time + batch size x processing  time per unit

0.4 = B/ 60 + B X 0.5

0.4 = B/60 + 0.5B

0.4( 60 + 0.5B) = B

24 + 0.2B=B

24=B-0.2B

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The current sections of Birmingham Inc.’s balance sheets at December 31, 2019 and 2020, are presented here. Birmingham’s net income for 2020 was $193,000. The income statement included depreciation expense, $25,000, amortization expense, $10,000, and a gain on disposal of equipment, $7,000. The equipment was sold for $47,000. Birmingham also issued bonds for $60,000. 2020 2019Current assets Cash $417,000 $ 99,000 Accounts receivable 120,000 93,000Inventory 159,000 176,000Prepaid expenses 29,000 24,000Total current assets $725,000 $392,000 Current liabilities Accrued expenses payable $ 17,000 $ 6,000 Accounts payable 88,000 94,000Total current liabilities $105,000 $100,000 InstructionsPrepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2020 using the indirect method.

Answers

Answer:

Net Income 193,000

Non-monetary terms:

Depreciation expense    25,000

amortization expense       10,000

gain on disposal               (7,000)  

Adjusted Income            221,000

Change in Working Capital:

Increase in A/R        (27,000)

Decreasein Inv          17,000

Increase in Prepaid   (5,000)

Increase Accrued /P   11,000

Decreasein A/P         (6,000)

Change In Working Capital     (10,000)

From Operating Activities    211,000

Investing

Sale of Equipment  47,000

Financing

Bonds Issued   60,000

Cash Flow              318,000

Beginning Cash   99,000

Cash Flow           318,000

Ending Cash        417,000

Explanation:

We first remove the non.monetary concetps from the net income.

Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account

Increase in asset and decrease in liabilities represent cash outflow

while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)

Interest rates rise faster in Scotland (GBP) than they do in the United States (USD). Which nation’s currency appreciates? Which nation’s currency depreciates? How will the change in the value of the U.S. dollar impact the balance of trade in the United States? How will the change in the value of the British pound impact the balance of trade in Scotland?

Answers

There is very simple logic between demand and supply. When demand is high, price rises and currency appreciates in its value. On the other hand, price should decline if import rate is mare compared with export rates. As prices of U.S goods increases which ultimately goes to international market where producers have to pay domestic currencies. Americans will demands comparatively less expensive goods. So it will result in supplying more dollars to foreign exchange market.

Finally, increasing demand of pounds. Finally, U.S dollars appreciates and pound depreciates. Trade value is amount by which total import value deviates from export value. Due to changes in interest rates results in trade imbalance in U.S. There is not greater effect on Scotland as it is key player in transporting of energy products to rest of U.K.

On June 1, 2014, Siebens Enterprises loaned $27,000 to Tyler Company for one year at 8 percent interest. Under the terms of the promissory note, Tyler will repay the principal and pay one year's interest on May 31, 2015. Related to this note receivable, what amount of interest income would Siebens report on its 2014 income statement? (Round your final answer to the nearest whole dollar amount.)

Answers

Answer:

$1,260

Explanation:

The computation of amount of interest income is shown below:-

Principal                                    $27,000

Rate of interest                          8%

Interest for 7 month in 2014     $1,260

($27,000 × 8% × 7 ÷ 12)

Interest for 5 months in 2015   $900

( $27,000 × 8% × 5 ÷ 12)

12 months from 1 June 2014  

to 31 may 2015                            12 months

Interest                                         $2,160

($27,000 × 8%)

T will repay the principal and one year interest  

on may 31, 2015

($20,000 + $2,160)                        $22,160

So, Interest income to be reported on its 2014 income statement is $1,260

In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and the ________.

Answers

Answer: Company objective and the resources

Explanation:

For evaluating the different types of marketing segment of an organization it basically involve the two main factors such as the overall segments's attractiveness and also the main objective of the company and its resources.

 By evaluating the marketing segment we can easily evaluating each segment of the company so that the company producing the desirable result according to the consumer requirements.

The company objective is one of the type of goals of the company that helps in achieving the desirable result and the opportunities. Therefore, Company objective and the resources is the correct answer.  

Geographically dispersed work groups no longer pose additional communication challenges given todays technology.a) true
b) false

Answers

The given statement is False Option(b) is correct.

What are work groups?

A Working group, or working party, is a group of specialists working together to accomplish indicated objectives. The groups are space explicit and center around conversation or action around a particular branch of knowledge.

A working group's presentation is comprised of the singular consequences of all its singular individuals. A group's presentation is comprised of both individual outcomes and aggregate outcomes. In enormous associations, working groups are predominant, and the attention is dependably on individual objectives, execution and accountabilities.

Working group individuals don't get a sense of ownership with results other than their own. Then again, groups require both individual and common responsibility. There is more data sharing, more group conversations and discussions to show up at a group choice The life expectancy of a working group can endure anyplace between a couple of months and quite a long while. Such groups tend to foster a semi extremely durable presence when the relegated task is achieved consequently the need to disband or gradually eliminate the working group when it has accomplished its objective.

Therefore Option(b) is correct.

Learn more about work group here:

brainly.com/question/28044374

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The answer is false
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