Case Description Tablets have become an ubiquitos part of our lives. The first models were launched in US in the year 2010.
Sales data is available for the first seven years (See below). As part of your analysis on the outlook for this industry:
a) How would you characterize the future for tablets? Are consumers crazy about this technology or are luke warm?
b) Prepare a five year forecast for this industry; has the market reached its peak (please identify the demand peak).

Please use the Bass Model Estimator provided. Use the spreadsheet tab called "Analysis Report"
Please clearly provide market size assumptions and justifications.
Year Annual Sales (Units Sold)
2010 3,000,000
2011 10,000,000
2012 25,000,000
2013 34,000,000
2014 39,000,000
2015 45,000,000
2016 51,000,000

Answers

Answer 1

Answer:

Answer:

a) According to the published sales statistics, it appears that the initial release of tablets in 2010 was warmly accepted by customers, since sales increased quickly in the years that followed. With only a 13% rise in revenue from 2015 to 2016, the rate of growth has slowed recently. This shows that customer enthusiasm for the technology may be waning.

b) We will utilize the Bass Model Estimator available on the "Analysis Report" page to project sales over the following five years. The "coefficient of innovation" (p) of this model accounts for the number of customers who have embraced the technology as well as the number of potential consumers who have not yet adopted the technology but may be persuaded to do so.

Explanation:

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Dee's suggestion that the company needed more control over the way its products were displayed, priced, and promoted prompted a lot of discussion. Mark suggested that the company should manage these marketing functions for its products at the retail outlets.Mark appears to be suggesting that Lite Bite use a(n): A. corporate distribution system.B. franchise arrangement.C. manufacturer-sponsored marketing chain.D.administered distribution system.
If the reserve requirement is 5 percent, a bank desires to hold no excess reserves, and it receives a new deposit of $10, then this bank a. must increase its required reserves by $10. b. will initially see its total reserves increase by $10.50. c. will be able to make new loans up to a maximum of $9.50. d. All of the above are correct.
What are the threats for online shopping
Managers find operation costing useful in cost management because it: A. focuses on control of physical processes of a given production system B. often results in profit maximization C. uses job costing to account for the conversion costs and process costing for the material and customizable components D. results in cost minimization

A home mortgage that can be repaid over a 30-year period is an example of:A. a line of credit.

B. a student loan.

C. a short-term loan.

D. a long-term loan.

Answers

Answer:

D. a long-term loan.

Explanation:

Loans are classified based on varied parameters. There are secure and unsecured loans, installment credit and revolving credit. Also, there loans with fixed interest rates and others with variable interest rates.

Loans are also categorized depending on the duration it takes to repay them. Short term loans are those repaid with one year. For businesses, these loans are short term liabilities.

Long-term loans take longer than one year to repay. The mortgage is to be paid over 30 years period. To businesses, these loans are long-term liabilities.

You purchase a share of Boeing stock for $90. One year later, after receiving a dividend of $3, you sell the stock for $92. What was your holding-period return

Answers

Answer:

5.56%

Explanation:

Computation for holding-period return

Using this formula

Holding-period return =(Stock sales- Purchased Share + Dividend)/Purchased share

Let plug in the formula

Where,

Stock sales=92

Purchased Share=90

Dividend=3

Holding-period return=(92 - 90 + 3) / 90

Holding-period return=5/90

Holding-period return=0.0556×100

Holding-period return= 5.56%

Therefore the Holding-period return will be 5.56%

Suppose you operate a coal power plant and is considering upgrading the flue gas desulphurisation (FGD) facility (or "scrubbers") to reduce sulphur dioxide emissions. A contractor says their new system will cost $5000 per year to operate. Calculate, to the nearest dollar, the present value of the operational costs for the next four years. Assume a discount rate of 2%.

Answers

Answer:

The present value is $19,039

Explanation:

The computation of the Present value is shown below

= Present value of all yearly cash inflows after applying discount factor

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

where,

rate is 2%

Year = 0,1,2,3,4 and so on

Discount Factor:

For Year 1 = 1 ÷ 1.02^1 = 0.9804

For Year 2 = 1 ÷ 1.02^2 = 0.9612

For Year 3 = 1 ÷ 1.02^3 = 0.9423

For Year 4 = 1 ÷ 1.02^4 = 0.9238

So, the calculation of a Present value of all yearly cash inflows are shown below

= (Year 1 cash inflow × Present Factor of Year 1) + (Year 2 cash inflow × Present Factor of Year 2) + (Year 3 cash inflow × Present Factor of Year 3) + (Year 4 cash inflow × Present Factor of Year 4)

= ($5,000 × 0.9804) + ($5,000 × 0.9612) + ($5,000 × 0.9423) + ($5,000 × 0.9238)

= $4,901.96 + $4,805.84 + $4,711.61 + $4,619.23

= $19,039

We take the first four digits of the discount factor.

The admission of a new partner to an existing partnership: a. May be accomplished only by investing assets in the partnership.
b. Causes a legal dissolution of the existing partnership.
c. Requires purchasing the interest of one or more existing partners.
d. Is almost always accompanied by the liquidation of the business.

Answers

Answer:

The correct answer is letter "B": Causes a legal dissolution of the existing partnership.

Explanation:

A Partnership is an organization that operates a business with two or more owners. They share the profits in proportion to their partnership interest in percentage terms. There are two types of partnerships: general partnerships (unlimited liability) and limited partnerships (passive members who are responsible depending on how much money they contribute to the company).

Every time one of the partnership members passes away, retires, or another partner will be added, the existing partnership legally dissolves creating a new entity.

Hayes Corp. is a manufacturer of truck trailers. On January 1, 2021, Hayes Corp. leases ten trailers to Lester Company under a six-year non-cancelable lease agreement. The following information about the lease and the trailers is provided: 1) Annual payment of $120,175 is due on January 1, 2021 and at December 31 from 2021 to 2025. Hayes Corp. has an implicit rate of 8% (present value factor for 6 periods at 8% is 4.99271). 2) Titles to the trailers pass to Lester at the end of the lease. 3) The fair value of each trailer is $60,000. The cost of each trailer to Hayes Corp. is $54,000. Each trailer has an expected useful life of nine years. 4) Collectibility of the lease payments is probable. Instructions (a) What type of lease is this for the Lester Company and Hayes Corp? (b) Prepare a lease amortization schedule for Lester Company till 12/31/2021. (c) Prepare the journal entries for Lester Company on 1/1/2021 and 12/31/2021. Round all amounts to the nearest dollar.

Answers

Answer:

FINANCING LEASE.

$\left[\begin{array}{cccccc}YEAR&Beginning&Cuota&Interest&amortization&Ending\n0&600000&120175&0&120175&479825\n1&479825&120175&38386&81789&398036\n2&398036&120175&31842.88&88332.12&309703.88\n3&309703.88&120175&24776.31&95398.69&214305.19\n4&214305.19&120175&17144.42&103030.58&111274.61\n5&111274.61&120175&8901.97&111273.03&1.58\n\end{array}\right]$

trailer 600,000 debit

lease liability 479,825 credit

cash 120,175 credit

--to record Jan 1st entry--

interest expense 38,386 debit

lease liability 81,789 credit

cash 120,175 credit

--to record Dec 31st entry--

Explanation:

The lease is for more than half of the asset useful life. Also, it has a present value equal to the fair value of the trailer. Also, ownership is acquired at the end of the lease life.

To build the schedule we calculate the interest on the principal

then, we subtract that from the installment to get the principal amortization and solve for the remaining at year-end

we repeat this procedure during the life of the lease.

Jan 1st, 2021

the journal entries will recognize the lease liability, the cash from the first payment, and the trailers received

Dec 31st, 2021

Here we must recognize the interest expense as well as the decrease in the lease liability.

Little Kona is a small coffee company that is considering entering a market dominated by Big Brew. Each company's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price: Big Brow High Price Low PriceLittle Kona Enter $2 million, $3 million -$2 million, $1 million Don't Enter $0, $8 million $0,$3 millionBoth Little Kona and Big Brew have a dominant strategy in this game.a. Trueb. False

Answers

Answer:

True

Explanation:

As long as the statement holds that ''each company's profit depends on whether Little Kona enters...'' and the response of the existing monopoly to charge a low price to keep its market share; then both little Kona and Big Brew have a dominant strategy in this game.

They both will become a duopoly which implies that there will be two players in the industry and the price of Big Brow will be greatly influenced by the presence of Little Kona. Big Brow could charge as high as $8 if Little Kona is absent but as low as $2 if Little Kona is enters the industry.

Obviously they both have a dominant strategy, considering further that the entrance of Little Kona changes the industry structure from monopoly to duopoly

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Critz Company was started on January 1, Year 1. During the month of January, Critz earned $7,500 of revenue and incurred $4,800 of expenses. During the remainder of Year 1, Critz earned $86,000 and incurred $51,000 of expenses. Critz closes its books on December 31 of each year. Required: a. Determine the balance in the Retained Earnings account as of January 31, Year 1. b. Determine the balance in the Revenue and Expense accounts as of January 31, Year 1. c. Determine the balance in the Retained Earnings account as of December 31, Year 1, before closing. d. Determine the balances in the Revenue and Expense accounts as of December 31, Year 1, before closing. e. Determine the balance in the Retained Earnings account as of January 1, Year 2. f. Determine the balance in the Revenue and Expense accounts as of January 1, Year 2.

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Journalize entries for the following related transactions of Manville Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles. Mar. 1 Purchased $90,000 of merchandise from Wright Co. on account, terms 2/10, n/30. Mar. 9 Paid the amount owed on the invoice within the discount period.Mar. 11 Discovered that $18,000 of the merchandise purchased on March 1 was defective and returned items, receiving credit for $17,640 [$18,000 − ($18,000 × 2%)].Mar. 18 Purchased $10,000 of merchandise from Wright Co. on account, terms n/30.Mar. 20 Received a refund from Wright Co. for return on Mar. 11 less the purchase on Mar. 18.

Which of the following statements about nonverbal communication is false? Select one: (A) Mastering nonverbal signals will allow you to "read someone like a book." (B) Nonverbal signals can be used to assert both authority and intimacy. (C) A person's voice carries both intended and unintended nonverbal cues. (D) Facial expressions are a primary means of conveying emotions.