A business law course is crucial for any student who desires to run their own business as it provides rules on how to run a business, understanding legal principles that help make better business decisions. Despite this, the course may be beneficial for students who are not interested in running their own businesses.
Business law course assists students in learning the legal principles of running a business. The course provides information on the various legal entities that can be used to run a business, including partnerships, corporations, and limited liability companies. It also helps students understand the legal documents required to operate a business, such as contracts, agreements, and leases. The course is also designed to help students comprehend how legal principles assist in making better business decisions.Students who are not interested in running their own businesses can benefit from taking a business law course. They may gain knowledge on consumer rights, bankruptcy, and other legal matters that they may encounter in their lives. Additionally, some universities require business law courses as a general education requirement to enhance students' understanding of the legal system and how it operates. Thus, students are better equipped to make legal and ethical decisions that benefit them and their business endeavors. In conclusion, while it is not important that the student is planning to run their own business, business law course offers skills and knowledge necessary for making informed legal and ethical decisions.
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Problem (4) Cash Dividends - Entries XYZ Company declares a $50,000 cash dividend on March 10, payable on April 6 to shareholders of record on March 25. Record the journal entries: Declaration Date (M
The following journal entries for cash dividends must be recorded for the given problem:
Declaration Date (March 10):
Debit: Retained Earnings ($50,000)
Credit: Dividends Payable ($50,000)
Payment Date (April 6):
Debit: Dividends Payable ($50,000)
Credit: Cash ($50,000)the record date.
Declaration Date (March 10):
On this date, XYZ Company declares a cash dividend of $50,000. The declaration of dividends reduces the company's retained earnings and creates a liability called Dividends Payable. The journal entry is as follows:
Debit: Retained Earnings ($50,000)
Credit: Dividends Payable ($50,000)
By debiting Retained Earnings, the company decreases its equity, specifically the accumulated profits. The credit to Dividends Payable establishes a liability because the company now owes the declared dividends to its shareholders.
Payment Date (April 6):
On April 6, XYZ Company pays the cash dividends to its shareholders. The journal entry for the payment of dividends is as follows:
Debit: Dividends Payable ($50,000)
Credit: Cash ($50,000)
The company reduces the Dividends Payable liability by debiting it, reflecting the fulfillment of its obligation to pay the declared dividends. The Cash account is credited to record the outflow of cash from the company.
These entries demonstrate the process of declaring and paying cash dividends, ensuring accurate recording of the financial transactions and the impact on the company's equity and liabilities.
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A surprise road trip? Been a long time since I have done one of those - and they are always fun - especially if I am just told to 'get in the car!' LOL! I keep coming back to the point - what am I being taught? I personally believe what I am being taught is as important as is the means I am being taught. Take for instance, flight training. It is not as simple as getting in the left seat of an airplane and pulling back on the stick. Rather, there is ground school - so you know how to talk with the tower and such; there is weather so you don't get caught in the 'soup,' there is Bernoulli's Principle, which must be understood. Then there are the instruments and how they operate. My style of learning will depend on what is being taught as the means will vary. Thoughts?
The writer is reflecting on the value of knowing what is being taught, as well as how it is being taught. Learning depends on the type of information,
the methodology may differ. Flight training, for example, cannot be done by simply getting into the left seat of a plane and pulling back on the stick. Understanding the theory behind Bernoulli's Principle, weather conditions, and how to communicate with air traffic control are all part of the process. That is why it is important to understand what is being taught as well as how it is being taught.
The writer reflects on the significance of knowing what is being taught and how it is being taught. This is a vital part of the learning process. Flight training is used as an example, where the methodology is more complex than simply sitting in the plane's left seat and pulling back on the stick. To comprehend the principles behind Bernoulli's Principle, weather conditions, and how to communicate with air traffic control, an individual must have attended ground school.According to the author, learning varies with the content being taught, and as a result, the methodology of instruction varies.
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Select an advertisement. Identify the physical or other emotional, relational, characteristics of the message in the advertisement that caught your attention. List what you see as the primary characteristics of advertisements (Image and text) that grab people’s attention
The primary characteristics of attention-grabbing advertisements are visually appealing images, bold text, emotion, relatability, and uniqueness.
When an advertisement features visually appealing images, it immediately catches the viewer's eye. Whether it's vibrant colors, stunning visuals, or an aesthetically pleasing composition, visually appealing elements can draw attention and create an immediate impact. Bold and attention-grabbing text, such as catchy slogans or intriguing headlines, can quickly captivate the viewer and make them curious about the message being conveyed. Emotional appeal is another key characteristic of effective advertisements. By tapping into people's emotions, whether it's joy, nostalgia, fear, or empathy, advertisers can create a connection with the audience and make the message more memorable.
Relatability is also crucial in grabbing people's attention. When an advertisement portrays situations, characters, or themes that resonate with the viewer's personal experiences or aspirations, it becomes more engaging. Finally, uniqueness sets an advertisement apart from the rest. Whether it's a fresh concept, a distinctive visual style, or an unexpected approach, being different and standing out from the crowd can make an advertisement more memorable and attention-grabbing.
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A firm is considering an investment in a new manufacturing plant. The site already is owned by the company, but existing buildings would need to be demolished. Which of the following should be treated as incremental cash flows?
The market value of the site
The market value of the existing buildings
Demolition cost and site clearance
The cost of a new access road put in last year
Lost cash flow on other projects due to executive time spent on the new facility.
Future depreciation of the new plant
Incremental cash flows are the cash flows that occur due to a specific decision. Incremental cash flows are the difference in cash flows that result from a decision between two alternatives.
The incremental cash flows in the given situation are as follows:Demolition cost and site clearance: This should be treated as incremental cash flows because the cost of clearing the site is a result of the decision to construct a new plant.The market value of the site: This is not an incremental cash flow because the site already belongs to the company and has no relation to the decision of constructing a new manufacturing plant.Lost cash flow on other projects due to executive time spent on the new facility: This is not an incremental cash flow because it is not a cash flow associated with the decision to construct a new plant. Future depreciation of the new plant: This is not an incremental cash flow because it will occur regardless of whether the new plant is constructed or not.The cost of a new access road put in last year: This is not an incremental cash flow because it is a sunk cost and not relevant to the decision of constructing a new plant.Therefore, the incremental cash flows are the demolition cost and site clearance. These will be considered as cash outflows.
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if actual manufacturing overhead is greater than the predetermined manufacturing overhead, then manufacturing overhead has been:
If the actual manufacturing overhead is greater than the predetermined manufacturing overhead, it indicates that the manufacturing overhead has been overapplied.
Overapplied manufacturing overhead occurs when the actual manufacturing overhead costs incurred in a period exceed the amount allocated or predetermined for that period. This situation often arises due to factors such as unexpected increases in expenses, inefficiencies in production, or inaccuracies in estimating the overhead costs.
When manufacturing overhead is overapplied, it means that the actual costs incurred are higher than what was anticipated or allocated. This can lead to variances in the financial statements and requires adjustments to be made.
To rectify the overapplied manufacturing overhead, companies typically make adjusting entries to decrease the overapplied amount. This adjustment helps align the actual costs with the allocated or predetermined overhead and ensures that the financial statements reflect the accurate manufacturing overhead expenses.
In summary, if the actual manufacturing overhead is greater than the predetermined manufacturing overhead, it signifies that manufacturing overhead has been overapplied, necessitating adjustments to reconcile the variances and accurately report the overhead costs.
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If actual manufacturing overhead exceeds the predetermined manufacturing overhead, a situation known as "overapplied manufacturing overhead" arises. This occurs when the estimated overhead costs that were allocated to products during the budgeting process exceed the actual overhead costs incurred during production.
Overapplied manufacturing overhead can indicate several potential scenarios. It might suggest that the company's cost estimates were too high or that the production process was more efficient than anticipated. Alternatively, it could signal that there were inefficiencies in cost tracking or allocation methods. Regardless of the cause, overapplied overhead creates discrepancies in the cost of goods sold and inventory figures, which can affect profitability calculations and financial reporting accuracy.
To address overapplied manufacturing overhead, companies often adjust their cost accounts or allocate the excess overhead back to production costs. Proper analysis of the overapplied overhead situation helps in refining cost estimation, budgeting, and resource allocation processes, contributing to more accurate financial reporting and better decision-making.
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Rowen, Inc. had pre-tax accounting income of $1,672,000 and a tax rate of 40% in 2015, its first year of operations. During 2015 the company had the following transactions:
Received rent from Jane, Co. for 2016
$64,000
Municipal bond income
$80,000
Depreciation for tax purposes in excess of book depreciation
$40,000
Installment sales revenue to be collected in 2016
$108,000
5. For 2015, what is the amount of income taxes payable for Rowen, Inc?
a. $603,200
b. $654,400
c. $686,400
d. $772,800
6. At the end of 2015, which of the following deferred tax accounts and balances is reported on Rowen, Inc.’s balance sheet?
Account _ Balance
a. Deferred tax asset $32,000
b. Deferred tax liability $32,000
c. Deferred tax asset $59,200
d. Deferred tax liability $59,200
The answers to the questions are For 2015, the amount of income taxes payable is: c. $686,400. At the end of 2015, the deferred tax account and balance reported c. Deferred tax asset $59,200
To determine the income taxes payable for Rowen, Inc. in 2015, we need to calculate the taxable income and apply the tax rate. The taxable income is the pre-tax accounting income adjusted for certain items. The calculations are as follows:
Pre-tax accounting income: $1,672,000
Add: Depreciation for tax purposes in excess of book depreciation: $40,000
Less: Installment sales revenue to be collected in 2016: $108,000
Taxable income: $1,604,000
Income taxes payable: Taxable income x Tax rate = $1,604,000 x 40% = $641,600
Therefore, the correct answer for question 5 is c. $686,400.
Regarding question 6, if Rowen, Inc. has a deferred tax asset or liability reported on its balance sheet at the end of 2015, it means there are temporary differences between the tax basis and book basis of certain assets or liabilities. From the options provided, the correct answer is c. Deferred tax asset $59,200. This suggests that Rowen, Inc. has a deferred tax asset balance of $59,200 due to timing differences that will result in future tax benefits.
For 2015, Rowen, Inc. has income taxes payable in the amount of $686,400. On its balance sheet, the company reports a deferred tax asset of $59,200, indicating the potential future tax benefits resulting from temporary differences between the tax and book basis of certain assets or liabilities.
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Which of the following most accurately describes the lessons from the Mexican financial crisis of 1992 and the East Asian financial crisis of 1997 as for how keeping the exchange rate pegged (that is, rather than letting the exchange rate float) might be unsustainable
in the long run? •
A. Keeping the exchange rate pegged allowed these countries to devalue their currencies at their discretion, which led to excessive quantitative easing by these countries that
caused inflation. O
B. The affected countries' attempt to maintain a fixed exchange rate, free international flows of capital, and independent monetary policy created an "incompatible trinity" where maintaining fixed exchange rate while keeping the capital market open led to the depletion of foreign reserves held by these countries because of moral hazard in risk-taking by companies and financial institutions in these countries and erosion of competitive
advantage.
OC. a and b
O D. None of the above
The East Asian financial crisis of 1997 and the Mexican financial crisis of 1992 both indicate that maintaining the exchange rate pegged could be unsustainable in the long run. Option C is the most accurate and comprehensive description of the lessons learned from these financial crises.
These lessons are discussed in detail below:
Option A is incorrect since excessive quantitative easing by countries that led to inflation was not a result of keeping the exchange rate pegged.
Instead, this occurred when the currencies of these countries were devalued, which would lead to their central banks printing more money to make up for the losses.
This, in turn, caused inflation.
Option B is partially correct because maintaining a fixed exchange rate while keeping the capital market open can lead to moral hazard in risk-taking by companies and financial institutions in these countries.
As a result, the foreign reserves held by these countries will be depleted.
Additionally, an independent monetary policy will be unsustainable if a country is committed to maintaining a fixed exchange rate.
As a result, the erosion of competitive advantage could occur.
Therefore, option C is the most accurate and comprehensive description of the lessons learned from these financial crises.
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During the Covid-19 pandemic, some organizational leaders made the decision for some categories of employees to work from home. Since April 2022, Covid-19 cases have been on the decline and the positivity rate has been below 5%.
Complete a force field analysis to help management decide if they should change the work from home arrangement.
Develop the variables you want to consider.
In the wake of the Covid-19 pandemic, some organizations decided to implement work from home policies for some categories of their employees. Since April 2022, however, the Covid-19 situation has improved considerably, with a decline in cases and a positivity rate below 5%.
As a result, it is essential to consider several variables when making decisions on whether to continue with remote work or to revert to in-person work.For example, some of the factors to consider include the nature of the job, productivity levels, communication, and employee satisfaction. Additionally, managers will have to weigh the pros and cons of remote work, such as increased flexibility and reduced commuting costs, versus the potential drawbacks, such as feelings of isolation, loss of team collaboration, and less supervision. Leaders will also have to think about factors like company culture and employee morale when making their decisions, as these can have a significant impact on employee retention and the overall success of the organization.
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Read the following examples of employee selection interviews and identify the problems associated with each example. Write the name of each problem on the answer script.
As an interviewer Mr. Fahimalways prefers male candidates for job placement.
Ms. Rumpa is not very impressive in terms of dressing and get-up. She is rejected in her first interview based on this fact though she is an academically sound candidate.
Mr. Farhan is smart and communicative in the interview session. Due to sickness, his voice was low in the interview session. His interviewer becomes biased toward that applicant to the extent that he rated him negatively on many desired attributes.
As an HR manager, Mr. Mimo has experience of more than 15 years. But his reputation was not good as an employee in his previous jobs.Money Leads Bank is hiring him only for his job experience by ignoring the weaknesses
Employee selection interviews are an important part of the hiring process.
Mr. Fahim prefers male candidates for job placement, which is a form of gender bias. This is unfair to female candidates who may be just as qualified for the position but are not given a fair chance. Problem: Appearance bias Ms. Rumpa is rejected based on her appearance rather than her qualifications.
This is a form of appearance bias, which can lead to discrimination against candidates who may not fit the traditional mold of what a "good employee" looks like. Problem: Interviewer bias Mr. Farhan is rated negatively by his interviewer due to a biased attitude. The interviewer becomes biased toward that applicant to the extent that he rated him negatively on many desired attributes.
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A prospectus
Group of answer choices
A. Ends all contractual promises
B. Is a written disclosure document
C. Is forbidden under federal law
D. Is not required
A prospectus is a written disclosure document that provides detailed information about a financial investment offering. It is required for publicly traded securities and registered investment funds to ensure transparency and protect investors. The correct option is B.
A prospectus is a written disclosure document. It is a formal legal document that provides detailed information about a financial investment offering, such as stocks, bonds, or mutual funds.
It serves as a communication tool between the issuing company and potential investors, providing them with essential information to make informed investment decisions.
The prospectus typically contains information about the investment's objectives, risks, terms and conditions, historical performance, management team, and financial statements.
It aims to provide transparency and enable investors to evaluate the investment opportunity accurately.
While a prospectus is not required for all investment offerings, it is commonly required for publicly traded securities and registered investment funds.
It ensures compliance with securities laws and regulations, such as those enforced by the Securities and Exchange Commission (SEC) in the United States.
The prospectus serves as a means to protect investors by ensuring they have access to relevant information before committing their funds.
In summary, a prospectus is a crucial written disclosure document that provides comprehensive information about an investment opportunity, allowing potential investors to make informed decisions and ensuring regulatory compliance.
The correct option is B. Is a written disclosure document.
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an estate that lacks sufficient liquidity to pay its obligations when due may be forced to sell illiquid assets or borrow money at unfavorable terms.
The statement, "an estate that lacks sufficient liquidity to pay its obligations when due may be forced to sell illiquid assets or borrow money at unfavorable terms," is referring to the fact that if the estate does not have enough money to pay its obligations when they become due, it will be forced to take drastic measures such as selling assets that are difficult to sell at a good price or borrowing money at a high rate.
A liquid estate is one in which the assets can be easily converted to cash at their fair market value. Illiquid assets, on the other hand, are difficult to sell at a fair price, and this can result in significant losses. The estate's lack of liquidity can also cause it to borrow money at unfavorable terms. This is because when an estate is in need of cash and has no other option, it will be forced to borrow money at high rates, which can result in a significant increase in the estate's expenses over time.
In addition, when an estate is forced to sell illiquid assets, it may be forced to sell them at a lower price than their fair market value, resulting in a significant loss of value. Therefore, it is critical for an estate to maintain sufficient liquidity to meet its obligations when they become due in order to avoid having to sell illiquid assets or borrow money at unfavorable terms.
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Use the following to answer the next three questions: With exactly 2700 cm^2 of cardboard, we wish to construct a box (width x, depth y, height 2) that can contain a volume V. We require the width to be double its depth. We would like to maximize the volume the box can hold Question 1 What is the objective of the above problem? O Minimize the volume of the box O Maximize the volume of the box O Minimize the amount of cardboard used O Maximize the volume of the box whille minimizing the amount of cardboard used
The objective of the given problem is to determine the maximum volume that a box with a width twice its depth and height 2 can hold with 2700 cm² of cardboard.
To solve this problem, we need to use the concept of optimization. We have a fixed amount of cardboard, so we need to find the dimensions of the box that will give us the maximum volume.To start with, let's express the volume V of the box in terms of its dimensions. The width is given as double the depth, so we can express the width as 2y. The height is given as 2, so we can express the volume as follows:V = x(2y)(2) = 4xyWe want to maximize the volume V, subject to the constraint that we have 2700 cm² of cardboard available to construct the box. The amount of cardboard needed to construct the box is given by the surface area of the box. The surface area of the box can be expressed as:S = 2xy + 2xz + 2yzHere, we have three variables: x, y, and z. However, we know that z = 2, so we can eliminate z from the equation:S = 2xy + 4y + 4xNow, we can use the constraint that we have 2700 cm² of cardboard available to construct the box:S = 2xy + 4y + 4x = 2700We want to express the volume V in terms of a single variable, so we need to eliminate one of the variables x or y. We can use the fact that the width is double the depth to eliminate x. We have:x = 2y/2 = ySubstituting this into our equation for the surface area, we get:S = 2xy + 4y + 4x = 2y² + 8yNow, we can express the volume V in terms of a single variable:y = (2700 - 4x)/2V = 4xy = 4x(2700 - 4x)/2 = 2x(2700 - 4x)We want to maximize V, so we need to find the maximum of this function. We can do this by taking the derivative of V with respect to x and setting it equal to zero:dV/dx = 2(2700 - 4x) - 8x = 5400 - 20x = 0Solving for x, we get:x = 270The dimensions of the box that will give us the maximum volume are:x = 270 cmy = 135 cmz = 2 cmFinally, the maximum volume of the box can be computed using the formula we derived earlier:V = 2x(2700 - 4x) = 729,000 cm³.
The objective of the given problem is to determine the maximum volume that a box with a width twice its depth and height 2 can hold with 2700 cm² of cardboard. The dimensions of the box that will give us the maximum volume are:x = 270 cmy = 135 cmz = 2 cmThe maximum volume of the box is 729,000 cm³.
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The PDCA is the cornerstone on which the ISO 9001:2015 is built; what set of actions happen under each phase and which clauses are relevant under each phase of the cycle?
The Plan-Do-Check-Act (PDCA) cycle is the foundation of the ISO 9001:2015 standard. Under each phase of the cycle, specific actions occur to ensure continual improvement and compliance with the standard's clauses.
The PDCA cycle consists of four phases: Plan, Do, Check, and Act. In the Plan phase, organizations establish objectives and develop plans to achieve them. This includes identifying risks and opportunities, defining processes, and setting performance indicators. Relevant clauses in this phase include Clause 4 (Context of the Organization), Clause 5 (Leadership), and Clause 6 (Planning).
In the Do phase, organizations implement the plans developed in the previous phase. This involves executing processes, training employees, and deploying resources. Clause 7 (Support) and Clause 8 (Operation) are the key clauses in this phase.
The Check phase focuses on monitoring and evaluating the implemented processes to determine their effectiveness. This includes conducting internal audits, collecting data, and analyzing performance indicators. Clause 9 (Performance Evaluation) is the primary clause relevant in this phase.
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Computer printers and ink cartridges are complementary goods. If the price of printers falls, then
a the supply of ink cartridges will increase (right shift of the cartridge supply curve).
b the demand for printers will increase (right shift of the printer demand curve).
c the demand for ink cartridges will increase (right shift of the cartridge demand curve).
d all of the above would occur.
The correct answer is c) the demand for ink cartridges will increase (right shift of the cartridge demand curve).
Complementary goods are products that are typically used together, such as computer printers and ink cartridges. When the price of printers falls, it becomes more affordable for consumers to purchase printers. As a result, the demand for printers is likely to increase, which would be represented by a rightward shift of the printer demand curve (option b).However, the decrease in printer prices does not directly impact the supply of ink cartridges. The supply of ink cartridges would depend on factors such as production costs, availability of inputs, and technological advancements, rather than changes in the price of printers. Therefore, option a (increase in cartridge supply) is incorrect.On the other hand, when more printers are purchased, there is a higher demand for ink cartridges to accompany and use with those printers. This increase in demand for ink cartridges is represented by a rightward shift of the cartridge demand curve (option c). Therefore, option c is the correct answer.Option d is incorrect because the supply of ink cartridges is not directly affected by changes in printer prices.
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Woodside Company's stock sells for $50 per share, its next dividend will be $2.00, its growth rate is a constant 4 percent, and the company would incur a flotation cost of 5 percent if it sold new common stock. What is the component cost of common equity built into the WACC, if the company does not raise equity capital by selling shares to the public?
The component cost of common equity built into the WACC is 11.69% if Woodside Company does not raise equity capital by selling shares to the public.
The cost of equity can be calculated by using the following formula; Cost of Equity (Re) = Next Dividend / Current Stock Price + Growth Rate Re = $2.00 / $50.00 + 4%Re = 8%Flotation cost is incurred by companies when they issue new securities in the market. In this case, the Woodside Company is not raising equity capital by selling shares to the public. The WACC is calculated by using the following formula: WACC = (E/V x Re) + (D/V x Rd) x (1 - Tc)Where: Re = Cost of Equity D = Cost of Debt E = Cost of Equity V = Total amount of capital Tc = Corporate Tax Rate Given, E = 100% and D = 0% and Tc = 0, the formula can be simplified as follows: WACC = E/V x Re WACC = 1 x 8%WACC = 8%Without considering flotation costs, the component cost of common equity built into the WACC is 8%.
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Sanchez Company engaged in the following transactions during Year 1: Started the business by issuing $14,100 of common stock for cash. 2) The company paid cash to purchase $8,400 of inventory. 3) The company sold inventory that cost $5,800 for $12,150 cash 4) Operating expenses incurred and paid during the year$5,300. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $ 12,400 of inventory . 2) The company sold inventory that cost $10,000 for $ 18.750 cash 3) Operating expenses incurred and paid during the year$6.300 . Note : Sanchez uses the perpetual inventory system What is the amount of Inventory that will be shown on the balance sheet at December 31. Year 2?
Sanchez Company engages in various transactions during Year 1 and Year 2. The company sells inventory and incurs operating expenses during both years. Sanchez uses the perpetual inventory system. Therefore, to determine the amount of inventory that will be shown on the balance sheet at December 31, Year 2, the cost of goods sold should be computed as follows:Calculation of Cost of goods sold in Year 1: The cost of goods sold is equal to the cost of the inventory sold. Thus, the cost of goods sold is equal to $5,800.
Sanchez Company engages in various transactions during Year 1 and Year 2. The company sells inventory and incurs operating expenses during both years. Sanchez uses the perpetual inventory system. Therefore, to determine the amount of inventory that will be shown on the balance sheet at December 31, Year 2, the cost of goods sold should be computed as follows:Calculation of Cost of goods sold in Year 1: The cost of goods sold is equal to the cost of the inventory sold. Thus, the cost of goods sold is equal to $5,800.Calculation of Ending inventory in Year 1: The cost of the ending inventory in Year 1 can be calculated by subtracting the cost of goods sold from the cost of the inventory purchased. That is, $8,400 - $5,800 = $2,600.The Sanchez Company purchased $12,400 of inventory in Year 2, and the cost of goods sold is $10,000. Therefore, the cost of the ending inventory in Year 2 can be computed as follows:Cost of the inventory purchased in Year 2 = $12,400Cost of goods sold in Year 2 = $10,000Thus, Ending inventory at December 31, Year 2, will be: Ending inventory = Cost of the inventory purchased in Year 2 - Cost of goods sold in Year 2Ending inventory = $12,400 - $10,000 = $2,400Therefore, the amount of inventory that will be shown on the balance sheet at December 31, Year 2, is $2,400.
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Dr Kennedy states that "Over coming years, the direct and immediate costs will be partially offset by increased investment to replace and rebuild damaged housing, infrastructure, inventories and household goods. The additional demand may place further upward pressure on the supply of materials and labour in the construction industry"
Discuss how the immediate costs of the floods will be offset in the longer term and explain and describe how this puts upward pressure on supply. You should again use the static AD/AS model to illustrate your discussion
Tip: Again, assume nationwide effects and be sure to link your assumptions to your discussion and then how this is reflected in your diagram. Most marks in this question are allocated to the written part of your answer.
The statement by Dr. Kennedy suggests that the immediate costs of the floods will be partially offset by increased investment in rebuilding damaged infrastructure, housing, inventories, and household goods.
This increased investment creates additional demand in the economy, which can have implications for the supply side, specifically in the construction industry. To explain this in more detail and illustrate it using the AD/AS model:
Immediate Cost Offset: The investment in replacing and rebuilding damaged assets stimulates economic activity and creates demand for construction-related goods and services. This leads to increased production and employment in the construction sector, which helps to offset the initial costs incurred due to the floods.
Upward Pressure on Supply: The increased demand for materials and labor in the construction industry puts upward pressure on the supply side of the economy. This is because the supply of materials and labor may struggle to keep up with the sudden surge in demand, leading to potential shortages and price increases.
In the AD/AS model, we can visualize this scenario as follows:
Aggregate Demand (AD): Initially, aggregate demand may decrease due to the immediate costs of the floods, shifting the AD curve to the left.
Aggregate Supply (AS): As the rebuilding efforts begin, there is an increase in investment, which boosts aggregate demand and shifts the AD curve to the right. However, the immediate costs incurred due to the floods may still have an impact on the aggregate supply in the short term.
Short-Term Effects: In the short term, the upward pressure on supply in the construction industry may lead to higher prices for materials and labor, causing the short-run aggregate supply (SRAS) curve to shift upward.
Long-Term Effects: Over time, as the rebuilding and replacement process progresses, the supply side of the economy adjusts to meet the increased demand. This leads to an expansion of the capacity of the construction industry, with increased investment in infrastructure and increased labor supply. This expansion helps to restore the equilibrium and potential output levels in the long run, as depicted by the long-run aggregate supply (LRAS) curve.
Overall, the initial costs of the floods are partially offset by increased investment, leading to increased demand and potential upward pressure on the supply of materials and labor. However, over time, the supply side adjusts to meet the increased demand, restoring equilibrium in the long run. The AD/AS model helps illustrate the short-term and long-term effects of these dynamics in the aftermath of the floods.
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ACold Inc. is a frozen-food distributor with 10 warehouses across the country. Ivan Tory, one of the warehouse managers, wants to make sure that the inventory policies used by the warehouse are minimizing inventory while still maintaining quick delivery to ACold's customers. Because the warehouse carries hundreds of different products, Ivan decided to study one. He picked Caruso's Frozen Pizza (CFP). Demand for CFP averages 400 per day with a standard deviation of 152. Because ACold orders at least one truck from its suppliereach day, ACold's computer system is designed to implement an order-up-to policy for each product. Ican notes that any order for CFP's arrives four days after the order.
a. Suppose it uses an order up to level of 2410. What is its expected on-hand inventory?
b. Suppose it uses an order-up-to level of 2500. What is its expected on-order inventory?
c. Suppose it uses an order-up to level of 2000. What is the in-stock probability?
d. Suppose it wants a .90 in-stock probability. What should its order-up to level be?
a) expected on-hand inventory = 810, b) Expected on-order inventory = 1690, c) In-stock probability = 0.77, d) Order-up-to level = 2157
Average demand during lead time = Mean * Lead time
Average demand during lead time = 400 * 4 = 1600
The standard deviation of demand during lead time = Standard deviation * √ Lead time
Standard deviation of demand during lead time = 152 * √4 = 304
a) Expected on-hand inventory = Order-up-to level - Average demand during lead time
Expected on-hand inventory = 2410 - 1600 = 810
b) Expected on-order inventory = Order-up-to level - Expected on-hand inventory
Expected on-order inventory = 2500 - 810 = 1690
c) In-stock probability = P(Demand during lead time ≤ Order-up-to level)
where P is the probability function for a normal distribution.
In-stock probability = P(Demand during lead time ≤ 2000) = P(Z ≤ (2000 - 1600) / 304) = P(Z ≤ 1.316) = 0.77.
d) Order-up-to level = Average demand during lead time + Z * Standard deviation of demand during lead time
Where Z is the z-score corresponding to the in-stock probability.
Order-up-to level = 1600 + Z * 304 = 1600 + 1.282 * 304 = 2157
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Harper is considering three alternative investments of $10,000. Assume that the taxpayer is in the 24% marginal tax bracket for ordinary income
and 15% for qualifying capital gains in all tax years. The selected investment will be liquidated at the end of five years. The alternatives are: • A taxable corporate bond yielding 5.333% before tax and the interest can be reinvested at 5.333% before tax.
• A Series EE bond that will have a maturity value of $12,200 (a 4% before-tax rate of return).
• Land that will increase in value.
The gain on the land is classified and taxed as a long-term capital gain. The income from the bonds is taxed as ordinary income. How much must the land increase in value to yield a greater after-tax return than either of the bonds? Use the future value tables in Appendix H as needed for your calculations
and comparisons. Present your answers using spreadsheet software such as Microsoft Excel
To outperform the bonds in terms of after-tax return, a rise of $12,551 is required in the value of the land.
How can this be explained?The computation involves a comparison of the anticipated future value of the property against the expected future worth of the bonds, while also factoring in the potential tax ramifications.
The forthcoming worth of land is computed based on the post-tax percentage gained from capital gains, whereas the future value of bonds is determined by considering the post-tax rate of return earned from regular income.
The detailed calculation is as follows:
The anticipated worth of the property after a specified period can be calculated as follows: multiply the present value of $10,000 with an interest rate of 15% raised to the power of 5 years, resulting in a future value of $12,551.
The anticipated value of a corporate bond subject to taxation in the future can be calculated as follows:
Take $10,000 and multiply it by (1 + 0. 05333) to the power of 5, then multiply that result by (1 - 0. 24), resulting in a final value of $11,820.
The estimated worth of the Series EE bond at a later time is $12,200.
It is apparent that the land's future worth surpasses that of both bonds. Thus, in order to surpass the after-tax return of the bonds, the land needs to appreciate by a minimum of $12,551.
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In ______________ planning, frontline managers usually focus on routine tasks such as production runs, delivery schedules, and human resource requirements Multiple Choice feasibility operational tecticel acquisition strategic
In operational planning, frontline managers usually focus on routine tasks such as production runs, delivery schedules, and human resource requirements.
Operational planning refers to the process of planning a company's future goals and objectives by specifying the actions needed to achieve those goals. It is the management of resources to meet customer demand based on the sales forecast while ensuring optimal efficiency and performance in operations. It involves routine or day-to-day tasks that a company requires to keep running smoothly.
Operational planning is vital in keeping the day-to-day activities of a business in sync with the organization's overall goals and objectives. Frontline managers are responsible for the execution of these daily activities, including production runs, delivery schedules, and human resource requirements. They are the ones who make sure that things are running smoothly at the operational level.
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1.Frito-Lay sells its products to 300,000 supermarkets, grocery stores and convenience stores. Salespeople visit each location once every other week. The average sales call take 80. An average salesperson works 2,000 hours per year. Several hours per week are devoted to non-selling activities leaving 1,200 hours per year for servicing clients. Based on this information how many salespeople would Frito-Lay require to service all its accounts?
2. A Travel Agency handles calls to book vacations. The Travel Agency has 100,000 customers. Each call take 30 minutes to handle. Customers call to book vacations 2 times per year. A booking agent has 25 hours per week to answer calls the rest of the time is devoted to administrative duties and training. How many Agents does the Travel Agency need to service its customers?
3. A gas company provides free furnace inspections to homeowners in Toronto. There are 850,000 homes in the city of Toronto. Each inspection takes 40 minutes to complete. Inspections are conducted twice per year. The service technician has 35 hours per week to conduct these inspections. They work 48 weeks per year. How many service technician would the gas company need to complete the inspections?
4. Canada Trust has 50,000 ATM's across Canada. They need to be checked and serviced 3 times per week. Each service call takes 20 minutes. There are two staff required for every service call. Security staff have 25 hours per week to service ATM's. The rest of the time is a required for travel and procurement. How many Security staff are required to service the ATM's.
The number of salespeople required would be 10,000 (300,000 accounts / 1,200 hours per year). The Travel Agency would need 80 booking agents (100,000 customers * 2 calls per year / 25 hours per week).
To service all its accounts, Frito-Lay would require approximately 10,000 salespeople. With 300,000 supermarkets, grocery stores, and convenience stores to cover, and each location being visited once every other week, and an average sales call taking 80 minutes, each salesperson would have approximately 1,200 hours per year for servicing clients (2,000 working hours per year minus non-selling activities).
Therefore, by dividing the total available hours by the time required per visit, we get 1,200 hours / 80 minutes = 15 visits per year. Dividing the total number of accounts by the visits per year, we get 300,000 accounts / 15 visits per year = 20,000 salespeople.The Travel Agency would need approximately 80 booking agents. With 100,000 customers making 2 calls per year, each call taking 30 minutes, and a booking agent has 25 hours per week to answer calls, we can calculate the total available time per year as 25 hours * 52 weeks = 1,300 hours. Dividing the total available time by the time required per call, we get 1,300 hours / 30 minutes = 2,600 calls per year. Dividing the total number of calls by the calls per customer per year, we get 2,600 calls / 2 calls per year = 1,300 booking agents.The gas company would require approximately 315 service technicians. With 850,000 homes requiring 2 inspections per year, and each inspection taking 40 minutes, and a service technician having 35 hours per week to conduct inspections, we can calculate the total available time per year as 35 hours * 48 weeks = 1,680 hours. Dividing the total available time by the time required per inspection, we get 1,680 hours / 40 minutes = 2,520 inspections per year. Dividing the total number of inspections by the inspections per technician per year, we get 2,520 inspections / 2 inspections per year = 1,260 service technicians.Canada Trust would need approximately 100 security staff to service the 50,000 ATMs. With each ATM requiring 3 service calls per week and each service call taking 20 minutes, and two staff required per service call, and the security staff having 25 hours per week to service ATMs, we can calculate the total available time per year as 25 hours * 52 weeks = 1,300 hours. Dividing the total available time by the time required per service call, we get 1,300 hours / 20 minutes = 3,900 service calls per year. Dividing the total number of service calls by the service calls per staff per year, we get 3,900 service calls / 2 service calls per staff = 1,950 staff. However, since two staff are required for each service call, the required number of security staff would be approximately 100.To learn more about “sales” refer to the https://brainly.com/question/25743891
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Explain what is meant by the term "inflation tax". Use budget constraints and figures to support your answer. Assume we are in the simple economy where money grows at the rate z, the population is constant, the young are endowed with y units of the consumption good, and the old are endowed with zero units of the consumption good.
Problem 2 a) Describe and explain the relationship between the real rate of return of fiat money and inflation. How does a growing money supply affect inflation? You can assume the same economy as in Problem 1. b) Explain why inflation is not an efficient tax. Support your answer with the use of budget constraints and figures. You can assume the same economy as in Problem 1.
Problem 3 Consider the interpretation of our model where the endowment y is in units of time and young individuals can choose to allocate time between leisure (c1,t) or labor (lt). Suppose the money supply is growing at rate z > 1 (e.g. money supply doubles in each period) in all future periods. (a) Is the monetary equilibrium efficient? Why or why not? Provide an intuitive argument or find the individual’s lifetime budget constraint and compare it to the planner’s resource constraint. (b) Provide some intuition about what this means for the relationship between inflation and output. That is, consider two identical economies, A and B, that differ only in their known growth rates of the money supply given by zA and zB. Where is output higher? (c) Explain the relationship depicted in the Phillips curve.
The Phillips curve depicts the relationship between inflation and unemployment. It suggests that there is a trade-off between inflation and unemployment in the short run.
a) The real rate of return of fiat money and inflation are inversely related. As the money supply grows, it leads to inflationary pressures, causing the purchasing power of money to decrease. This decrease in purchasing power results in a lower real rate of return on money. In other words, inflation erodes the value of money over time, reducing the real return one can expect from holding it.
b) Inflation is not an efficient tax because it imposes costs and distortions on the economy. When the money supply grows, it leads to inflation, which reduces the purchasing power of money. This reduction in purchasing power acts as a hidden tax on people's wealth and savings. However, unlike traditional taxes, inflation does not provide any revenue for the government to finance public goods or redistribute resources efficiently. Additionally, inflation introduces uncertainty and distorts relative prices, making it difficult for individuals and businesses to plan and allocate resources effectively.
a) The monetary equilibrium in this scenario is not efficient. The growing money supply creates inflation, which distorts the allocation of resources and reduces overall welfare. Intuitively, as the money supply grows, the prices of goods and services increase, leading to a decline in the purchasing power of money. This reduction in purchasing power distorts the individual's lifetime budget constraint, as their savings and accumulated wealth lose value over time. The planner's resource constraint, on the other hand, remains unaffected by inflation, leading to an inefficiency in resource allocation.
b) In an economy with a higher known growth rate of the money supply (zB), output is likely to be higher compared to an economy with a lower growth rate (zA). This is because the higher inflation resulting from a faster-growing money supply stimulates aggregate demand and encourages spending, leading to increased production and output. However, it's important to note that sustained high inflation can also introduce inefficiencies and distortions in the long run, potentially hampering economic growth.
c) The Phillips curve depicts the relationship between inflation and unemployment. It suggests that there is a trade-off between inflation and unemployment in the short run. When inflation is high, unemployment tends to be low, and vice versa. This trade-off arises due to the nominal wage rigidity and the adjustment processes in the labor market. However, in the long run, this trade-off is not sustainable, as expectations of inflation adjust, and the Phillips curve becomes vertical at the natural rate of unemployment. In the long run, changes in the money supply primarily impact inflation, while the level of output is determined by real factors such as technology, capital, and labor.
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Which of the following is correct as it relates to using Excel Solver in case of capital rationing?
Group of answer choices
One creates binary variables that have the value of either 1 (chosen) or 0 (not chosen).
One sets the objective such as to maximize the net present value of chosen investments.
One sets the constraint such as the total investments being greater than the amount of capital available.
The correct statement that relates to using Excel Solver in case of capital rationing is "One sets the constraint such as the total investments being greater than the amount of capital available."
A capital rationing is a situation in which a business has a limited amount of investment resources, and a company must select which capital investment projects to undertake. When a company's investment budget is insufficient to finance all of the promising projects, the process of selecting among various available investments becomes known as capital rationing. Capital rationing is the process of determining which capital investment projects to pursue in order to maximize shareholder wealth.
When using Excel Solver to solve the capital rationing problem, one sets the constraint such as the total investments being greater than the amount of capital available.In Excel Solver, one must enter constraints for capital rationing that prevent the sum of the investments' values from exceeding the available budget or capital. Therefore, one must set the constraint such as the total investments being greater than the amount of capital available. The Solver program will then choose the optimal combination of investments that meets the constraints specified, such as maximizing the net present value of chosen investments, subject to the constraint that the total investment does not exceed the capital available. The correct option is "One sets the constraint such as the total investments being greater than the amount of capital available."
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Explain what is meant by strategic behavior. 7. The NCAA is described as a cartel. In what way is it a cartel? What is the product being produced? How does the cartel stay together?
Strategic behavior refers to the deliberate actions taken by individuals or organizations to achieve their goals by anticipating and considering the potential actions and reactions of others involved.
It involves making decisions and taking actions based on an analysis of the competitive environment and the behavior of other participants. The NCAA (National Collegiate Athletic Association) is often described as a cartel due to certain characteristics it exhibits. A cartel is an organization of independent entities that collaborate to restrict competition and maximize their collective profits.
In the case of the NCAA, it is a voluntary association of universities and colleges that governs collegiate sports in the United States. The "product" being produced by the NCAA is the organization and regulation of college athletics, including organizing tournaments, setting rules, and enforcing eligibility requirements for student-athletes.
The NCAA stays together as a cartel through various means. Firstly, member institutions agree to abide by the association's rules and regulations, which includes following the NCAA's governance structure and participating in its events. Additionally, member institutions collectively make decisions through voting processes, allowing them to maintain control over the organization's operations and policies. The shared interests and benefits, such as revenue sharing and exposure through national events, also contribute to the cohesion of the cartel.
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Questions :
1. How will Harley Davidson appeal to younger buyers?
must
2. Can Harley maintain its American Icon
status?
3. How can Harley reduce the resistance to riding
motorcycles because they are p
Harley Davidson: An Overreliance on Aging Baby Boomers Alan N. Hoffman Bentley University Natalia Gold Northeastern University Company Background In 1903, William S. Harley and Arthur Davidson produce
Conclusion: To appeal to younger buyers, Harley Davidson can focus on creating a more modern and attractive design for its motorcycles, while also incorporating features that appeal to younger riders such as connectivity, technology, and customization options.
1. Additionally, Harley Davidson can target younger demographics through digital marketing campaigns and events that cater to the interests of younger riders.
2: Harley Davidson has a strong brand reputation and a loyal customer base, which has helped it maintain its American Icon status. However, it will need to continue to innovate and adapt to changing market trends in order to remain relevant and attractive to younger buyers. Additionally, the company can continue to invest in research and development to create new products and technologies that appeal to younger riders.
3: To reduce resistance to riding motorcycles, Harley Davidson can focus on creating safer and more user-friendly motorcycles, while also promoting the benefits of motorcycling such as freedom, adventure, and a sense of community. Additionally, the company can offer training programs and events to help new riders feel more comfortable and confident on the road. Harley Davidson can also partner with organizations and initiatives that promote motorcycle safety and education.
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Use practical and real examples to explain your answers
Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.
Briefly evaluate the strengths and weaknesses of affiliate marketing for Walmart.
Affiliate marketing can be a valuable strategy for Walmart, offering both strengths and weaknesses. Here is an evaluation of its strengths and weaknesses for the retail giant:
Expanded Reach: Affiliate marketing allows Walmart to tap into the vast networks of affiliates, such as influencers, bloggers, and content creators. These affiliates promote Walmart's products to their audiences, expanding the brand's reach and potentially reaching new customers. Example: Walmart can partner with popular mommy bloggers who review baby products. These bloggers can recommend Walmart's baby products and provide affiliate links, driving traffic and potential sales to Walmart's website or stores.
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Briefly describe the difference between public sector employees and private sector employees. At least one substantive paragraph. 2. With that in mind, please offer both a pro argument in favor of public service employees being able to unionize, and a con argument as to why they should not be allowed to unionize. At least two substantive paragraphs.
Public sector employees are those who are employed by government entities at various levels, including federal, state, and local governments. Private sector employees are those who work for private corporations or businesses owned by individuals or groups.
Public sector employees are paid with funds from taxpayers, while private sector employees are paid by the company they work for and funded by customers through the products or services they purchase. In terms of benefits, public sector employees may have better job security and pensions, while private sector employees may have access to more competitive salaries and benefits.
In favour of public service employees being able to unionize, unions can help employees negotiate better wages, benefits, and working conditions. Unions can also provide support for employees who are experiencing workplace harassment or discrimination, and they can help employees resolve disputes with their employers. On the other hand, a con argument as to why public service employees.
Additionally, unions can make it difficult to fire employees who are underperforming or engaging in misconduct, which can be harmful to the quality of public services. In conclusion, public-sector employees and private-sector employees differ in their employers, sources of funding, and benefits. While unions can be helpful for public service employees to negotiate better wages and working conditions, there are also potential drawbacks such as conflicts of interest and reduced accountability.
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Discuss the validity of the statement that the learning curve is
of diminishing significance in modern production processes.
The statement that the learning curve is of diminishing significance in modern production processes may not be universally valid and should be evaluate on a case-by-case basis.
the validity of the statement that the learning curve is of diminishing significance in modern production processes depends on various factors and the context in which it is applied. while technological advancements and automation have undoubtedly transformed production processes, it does not necessarily mean that the learning curve has become irrelevant. here are some points to consider:
1. complexity of modern production processes: modern production processes can still be complex, involving advanced technologies, sophisticated machinery, and intricate supply chains. learning how to operate, maintain, and optimize these systems requires time and experience. the learning curve can still play a crucial role in achieving efficiency and quality in these processes.
2. skill requirements: even with automation, certain tasks within production processes may still require human skills, such as programming, troubleshooting, or decision-making. acquiring and developing these skills often involve a learning curve, especially when dealing with new technologies or processes.
3. continuous improvement: modern production processes emphasize continuous improvement and innovation. this implies that there is always room for learning and adapting to new techniques, tools, or methodologies. the learning curve can guide organizations in identifying areas for improvement, optimizing processes, and implementing changes effectively.
4. learning from mistakes: the learning curve helps in identifying and rectifying errors, preventing their recurrence in subsequent production cycles. in modern production processes, learning from mistakes is still relevant, as it contributes to quality control, risk mitigation, and overall process optimization.
5. employee training and development: while automation has reduced the need for manual labor in some areas, organizations still invest in employee training and development to enhance their skills and knowledge. this training process typically involves a learning curve, as employees acquire new competencies and adapt to evolving production processes.
it is important to note that the significance of the learning curve may vary across industries, products, and specific process implementations. some modern production processes may have significantly reduced the learning curve due to increased standardization, simplified operations, or advanced training techniques. however, in many cases, the learning curve remains relevant in ensuring efficient, safe, and high-quality production.
in conclusion, while technological advancements have undoubtedly influenced production processes, the learning curve still holds significance in modern production. it contributes to skill development, process optimization, continuous improvement, and adapting to new technologies and methodologies.
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230,000 Marik corporation began operations in 2020 and reported pretax financial income of for the year. Marik income tax rate is 75.00 % for all years. Marik uses accrual basis for accounting purposes and cash basis for tax purposes. During 2020 the following events and transactions occurred: Amount Recorded product warranty liability that is expected to be paid in 2021 24,000 19,200 Company sold goods FOB shipping point in December 2020 on account.
The tax payable would be 75% of $234,800, which is $176,100.
Marik corporation began operations in 2020 and reported pretax financial income of 230,000 dollars for the year. Marik income tax rate is 75.00 % for all years. Marik uses the accrual basis for accounting purposes and cash basis for tax purposes.
During 2020 the following events and transactions occurred:
Amount Recorded product warranty liability that is expected to be paid in 2021 24,000 19,200
Company sold goods FOB shipping point in December 2020 on account.Since Marik Corporation uses accrual accounting for accounting purposes and cash accounting for tax purposes, it is necessary to make the following adjustments to the income.
Since the warranty claim will be made next year, it will not be tax-deductible this year.
As a result, taxable income for the year will be higher by $4,800 ($24,000-$19,200).
Therefore, the taxable income would be:230,000+4,800=234,800 dollars.
The tax payable would be 75% of $234,800, which is $176,100.
So, the answer is $176,100.
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James' demand for nachos is ln(q) = 10 − 2 ln(p) + ln(m), where P is the price of nachos and m is his income. Which of the following statements is TRUE?
a. The demand curve is always price inelastic b. The absolute value of the price elasticity of demand increases as quantity demanded increase
c. The absolute value of the price elasticity of demand decreases as quantity demanded increase d. The income elasticity of demand decreases as quantity demanded increase e. The income elasticity of demand is always equal to 1
To determine which statement is true, let's analyze the given demand function:
ln(q) = 10 - 2ln(p) + ln(m)
where:
q is the quantity demanded of nachos,
p is the price of nachos, and
m is James' income.
Statement a: The demand curve is always price inelastic.
Price elasticity of demand (PED) measures the responsiveness of quantity demanded to changes in price. To determine if the demand curve is always price inelastic, we need to evaluate the magnitude of PED for different price levels.
From the given demand function, we can derive the inverse demand function:
p = e^(10 - ln(q) + ln(m))
To calculate PED, we differentiate the inverse demand function with respect to price and multiply by p/q:
PED = (dp/dq) * (q/p) = -1/q
Since PED is inversely proportional to quantity demanded (q), it means that as quantity demanded increases, the absolute value of PED decreases. Therefore, statement a is false.
Statement b: The absolute value of the price elasticity of demand increases as quantity demanded increases.
As explained in statement a, the absolute value of the price elasticity of demand actually decreases as quantity demanded increases. Therefore, statement b is false.
Statement c: The absolute value of the price elasticity of demand decreases as quantity demanded increases.
As derived in the explanation for statement a, the absolute value of the price elasticity of demand does decrease as quantity demanded increases. Therefore, statement c is true.
Statement d: The income elasticity of demand decreases as quantity demanded increases.
The given demand function does not provide information about the income elasticity of demand. Therefore, we cannot determine how the income elasticity of demand changes as quantity demanded increases. So, statement d cannot be concluded.
Statement e: The income elasticity of demand is always equal to 1.
Since the given demand function does not specify the relationship between quantity demanded and income, we cannot conclude that the income elasticity of demand is always equal to 1. Therefore, statement e is false.
In conclusion, the correct statement is c: The absolute value of the price elasticity of demand decreases as quantity demanded increases.
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