Answer:
Purchases= 135,600 pounds
Explanation:
Giving the following information:
The production budget for the same two months is 45,000 units and 46,000 units, respectively.
Each unit of finished goods required 3 pounds of raw materials.
To calculate the purchases for April, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 45,000*3 + (46,000*3)*0.2 - (45,000*3)*0.2
Purchases= 135,000 + 27,600 - 27,000
Purchases= 135,600 pounds
Given the data, the number of pounds of materials to be purchased in April is 135,600 pounds.
Data and Calculations:
April May
Sales units 48,000 50,000
Production units 45,000 46,000
Number of pounds of raw materials per unit = 3
Material Requirement:
April May
Production materials required 135,000 138,000 (46,00 x 3)
Ending inventory required 27,600 0
Total materials for production 162,600
Beginning inventory 27,000 27,600 (138,000 x 20%)
Purchases of materials 135,600
Thus, the number of pounds of raw materials to be purchased for April production is 135,600.
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How are productive resources
allocated among people and
businesses in the United States?
Answer:
see below
Explanation:
America is a good example of a free-market economy. In this type of market, productive resources are allocated through the interaction of a willing buyer and a willing seller. In a market economy, Mutual beneficial exchange of resources through trade is relied upon to solve economic problems. An Individual's self-interest is viewed as a benefit to society.
In a free-market economy like in America, purchasing power determines who owns resources. Resource owners are motivated by profits and other self-interest to engage in production. The forces of supply and demand control activities in a Free Market. Consumers decide what will be produced. In market economies, operation and acquisition of resources is by the freely and self-directed interaction between consumers and producers.
A car dealer acquires a used car for $12,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include:
$100 for transportation-in.
$170 for shipping insurance.
$800 for car import duties.
$140 for advertising.
$1,400 for sales staff salaries.
$150 for trimming shrubs.
Required:
For computing inventory, what cost is assigned to the used car?
Answer:
$13,070
Explanation:
The Cost of inventory according to IAS 2 include all cost of purchase, cost of conversion and other cost incurred in bringing the inventory to their present location and condition.
Calculation of Inventory Cost
Cost of Purchase $12,000
Transportation-in $100
Shipping insurance $170
Car import duties $800
Total Cost $13,070
Subway, the sandwich shop, is run by Jim, Tim and Kim. When a customer arrives, Jim spends 5 minutes taking order from the customer. After this, Tim prepares bread and Kim prepares filling for the order. These activities are performed in parallel, and take 7 and 10 minutes respectively. Jim then assembles the bread and filling, which takes 5 minutes of his time. Finally, Tim spends 5 minutes in delivering the order and taking payment. What is the minimum time for an order to be completed in the process
Answer:
22 minutes minimum time
Explanation:
In the given scenario Subway sandwich shop has given its processes and time of each process.
We are to calculate the minimum time it will take to process a order. So we add all the times
Below is breakdown of the process time
Jim take orders 5 minutes
Tim prepares bread and Kim prepares filling for the order 7 - 10 minutes. We use 7 minutes since we are looking for minimum time.
Jim then assembles the bread 5 minutes
Time delivers order and takes payment 5 minutes
Total time = 5 + 7 + 5 + 5 = 22 minuites
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 17 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $2.40 per share. What is the current value of one share of this stock if the required rate of return is 7.90 percent?
Answer:
$196.91
Explanation:
The computation of the current value is shown below:
D1 = ($2.4 × 1.17) = 2.808
D2 = ($2.808 × 1.17) = 3.28536
D3 = (3.28536 × 1.17) = 3.8438712
D4 = (3.8438712 × 1.17) = 4.4973293
Now
Value after year 4 is
= (D4 × Growth rate) ÷ (Required return - Growth rate)
= (4.4973293 × 1.06) ÷ (0.079 - 0.06)
= 250.903635
Now the current value is
= Future dividend and value × Present value of discounting factor
=$2.808 ÷ 1.079 + 3.28536 ÷ 1.079^2 + 3.8438712 ÷ 1.079^3 + 4.4973293 ÷ 1.079^4 + 250.903635 ÷ 1.079^4
= $196.91
5. The average total cost to produce 100 cookies is $0.25 per cookie. The marginal cost is constant at $0.10 for all cookies produced. What is the total cost to produce 50 cookies
Answer:
$20
Explanation:
First, we need to find the total cost of producing 100 cookies.
From the above question, the total cost to produce 100 cookies is given by the average total cost of $0.25 multiplied by 100 units
TC = $0.25 × 100 = $25.
Therefore, the total cost to produce 50 cookies, is equal to the cost of producing 100 units minus the marginal cost ($0.10 per unit) of the additional 50 units.
TC = $25 - ($0.1 × 50) = $20
g Toyota has announced that it will offer free financing for 36-month loans on selected new models. How much is the zero-interest offer worth to you on a 36-month $25,000 loan if the market rate on loans of this type is 8%
Answer:
$2,839.02
Explanation:
The computation of zero-interest offer is shown below:-
monthly payment = $25,000 ÷ 36
= $694.44
PV of loan = PMT × [1 - (1 + i) ^-n)] ÷ i
$25,000 = PMT × [1 - (1 + 0.67%) ^-36] ÷ 0.67%
PMT = $783.41
Now, the difference in monthly payment with and without interest is
= $783.41 - $694.44
= $88.96
PV of saving = $88.96 × [1 - (1 + 0.67%) ^-36] ÷ 0.67%
= $2,839.02
Schaeffer Corporation reports $52 million accumulated other comprehensive income in its balance sheet as a component of shareholders’ equity. In a related statement reporting comprehensive income for the year, the company reveals net income of $520 million and other comprehensive income of $27 million. What was the balance in accumulated other comprehensive income in last year’s balance sheet? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)
Answer:
$25,000,000
Explanation:
Schaeffer corporation reports $52 million accumulated other comprehensive income in its balance sheet
The company reveals a net income of $520 million
Other comprehensive income is $27 million
Therefore the balance accumulated in last year's balance sheet can be calculated as follows
= $52,000,000 - $27,000,000
= $25,000,000
A company reported net income of $290,000. Beginning balances in Accounts Receivable and Accounts Payable were $18,000 and $21,000 respectively. Ending balances in these accounts were $11,500 and $29,000, respectively. Assuming that all relevant information has been presented, what is the company's net cash flows from operating activities?
Answer:
$310,500
Explanation:
The first step is to calculste the increase in account payable
= ending amount-beginning balance
= $29,000-$11,500
= $17,500
Decrease in account receivable
= $21,000-$18,000
= $3,000
Therefore the cash flow can be calculated as follows
= $290,000 + $17,500 + $3000
= $310,500
Ramirez Company is completing the information processing cycle at its fiscal year-end on December 31. Following are the correct balances at December 31 for the accounts both before and after the adjusting entries.
Trial Balance, December 31 of the Current Year
Before After
Adjusting Entries Adjusting Entries
Items Debit Credit Debit Credit
a. Cash $ 13,600 $ 13,600
b. Accounts receivable 430
c. Prepaid insurance 720 480
d. Equipment 169,880 169,880
e. Accumulated depreciation, $ 41,400 $ 46,700
equipment
f. Income taxes payable 1,920
g. Common stock and 110,000 110,000
additional paid-in capital
h. Retained earnings, January 1 15,680 15,680
i. Service revenue 72,500 72,930
j. Salary expense 55,380 55,380
k. Depreciation expense 5,300
l. Insurance expense 240
m. Income tax expense 1,920
$ 239,580 $ 239,580 $ 247,230 $ 247,230
Compute the amount of net income assuming that it is based on the amounts (a) before adjusting entries and (b) after adjusting entries.
Answer:
Please solution below
Explanation:
Computation of the amount of net income based on;
Adjusting entries (Amounts before)
Sales revenue.
$72,500
Less Expenses;
Depreciation exp.
Nil
Insurance expense
Nil
Salary expense
($55,380)
Income tax expense
Nil
Net income
$17,120
Adjusting entries(Amounts after)
Service revenue
$72,930
Less expenses:
Depreciation expense
($5,300)
Insurance expense
($240)
Salary expense
($55,380)
Income tax expense
($1,920)
Net income
$10,090.
•Note: The net income value of $10,090 after adjusting the entries is correct because all revenue and expenses were factored, in arriving at the figure, while the net income value of $17,120 before adjusting the entries, is incorrect due to the fact that it does not take cognizance of revenue of $430 and expenses of $7,460.
had $35 million in sales last year. Its cost of goods sold was $25 million and its average inventory balance was $3 million. What was its average days of inventory
Answer: 43.8 days
Explanation:
Average days of school inventory can be calculated as:
= Average inventory balance/(Cost of goods sold/365)
= $3million/($25 million/365)
= $3 million/$68493.15
= 43.8 days
Westbank Real Estate, Inc. owns 10 acres of forested land. Westbank wants the land cleared in order to build houses. Westbank emails a signed electronic memorandum to a representative of Hardell Lumber Co. offering to sell the mature trees and rich topsoil to Hardell for lumber and agricultural purposes. The electronic memorandum includes the parties' typed names, the consideration, the price, and a description of the property, lumber, and soil. Hardell replies via email to Westbank that it accepts Westbank's terms, electronically signs the memorandum, and will start removing the trees and soil next month. Before Hardell can begin clearing the land, Westbank changes its mind, wants to keep the land forested, and prevents Hardell from accessing the property claiming no contract has been formed.
2. Does the electronic agreement for the sale of trees and soil fall under the statute of frauds? (YES / NO)
3. Under which category? (CONTRACTS INVOLVING LAND/ CONTRACTS THAT BY THEIR TERMS CANNOT BE PREFORMED IN LESS THAN A YEAR AFTER THE DATE OF AGREEMENT/ A PROMISE TO ANSWER FOR A DEBT OF ANOTHER/ A PROMISE MADE IN CONSIDERATION OF MARRIAGE/ CONTRACTS FOR THE SALE OF GOODS OVER $500)
4. An electronic memorandum (DOES/ DOES NOT) satisfy the writing requirements for the Statute of Frauds.
5. Land is considered to be (REAL PROPERTY/ PERSONAL PROPERTY)
6. The definition of land includes (NO/ SOME/ ALL) physical objects that are permanently attached to the property.
7. Examples of physical objects that constitute land for purposes of the statute of frauds include (BUILDINGS/ FENCES/ TREES/ SOIL/ ALL OF THESE)
8. A written or electronic memorandum evidencing a contract will suffice provided that the writing is signed by (THE PERSON WHO IS ENFORCING THE CONTRACT/ THE PERSON AGAINST WHOM THE CONTRACT IS BEING ENFORCED)
9. Who signed the e-mails? (WESTBANK REAL ESTATE/ HARDELL LUMBER/ BOTH PARTIES)
10. What type of signature must be on an e-mail in order to enforce an electronic record? (A TYPED NAME/ AN OFFICIAL SIGNATURE/ A NOTARIZED SIGNATURE/ AN ENCRYPTED SIGNATURE)
11. Does the electronic memorandum have the parties' typed names? (YES/ NO)
12. Does the electronic memorandum describe the property involved?(YES/ NO)
13. Is it likely a court would find that the electronic memorandum satisfied the statue of frauds? (YES/ NO)
14. As a result, Hardell (WILL/ WILL NOT) likely be able to enforce the contract against Westbank.
Answer:
Westbank Real Estate, Inc. and Hardell Lumber Co.
2. Does the electronic agreement for the sale of trees and soil fall under the statute of frauds? (YES / NO)
3. Under which category? (CONTRACTS INVOLVING LAND/ CONTRACTS THAT BY THEIR TERMS CANNOT BE PERFORMED IN LESS THAN A YEAR AFTER THE DATE OF AGREEMENT/ A PROMISE TO ANSWER FOR A DEBT OF ANOTHER/ A PROMISE MADE IN CONSIDERATION OF MARRIAGE/ CONTRACTS FOR THE SALE OF GOODS OVER $500)
4. An electronic memorandum (DOES/ DOES NOT) satisfy the writing requirements for the Statute of Frauds.
5. Land is considered to be (REAL PROPERTY/ PERSONAL PROPERTY)
6. The definition of land includes (NO/ SOME/ ALL) physical objects that are permanently attached to the property.
7. Examples of physical objects that constitute land for purposes of the statute of frauds include (BUILDINGS/ FENCES/ TREES/ SOIL/ ALL OF THESE)
8. A written or electronic memorandum evidencing a contract will suffice provided that the writing is signed by (THE PERSON WHO IS ENFORCING THE CONTRACT/ THE PERSON AGAINST WHOM THE CONTRACT IS BEING ENFORCED)
9. Who signed the emails? (WESTBANK REAL ESTATE/ HARDELL LUMBER/ BOTH PARTIES)
10. What type of signature must be on an email in order to enforce an electronic record? (A TYPED NAME/ AN OFFICIAL SIGNATURE/ A NOTARIZED SIGNATURE/ AN ENCRYPTED SIGNATURE)
11. Does the electronic memorandum have the parties' typed names? (YES/ NO)
12. Does the electronic memorandum describe the property involved?(YES/ NO)
13. Is it likely a court would find that the electronic memorandum satisfied the statute of frauds? (YES/ NO)
14. As a result, Hardell (WILL/ WILL NOT) likely be able to enforce the contract against Westbank.
Explanation:
The memoranda exchanged between Westbank Real Estate and Hardell Lumber Co provides the evidence of their oral contract. The statute of fraud covers most oral contracts, especially those involving real property or sale of land. It is important to note that land includes all its permanent attachments.
Use the following information for ECE incorporated: Shareholder Equity $100 million Assets $200 million Sales $300 million Net Income $15 million Interest Expense $2 million If ECE's stock is currently trading at $24.00 and ECE has 25 million shares outstanding, then ECE's market-to-book ratio is closest to:
Answer:
6.0
Explanation:
Market to book ratio is calculated as ; Market capitalization / Net book value.
Where,
Market capitalization = Price per share × Total shares outstanding
= $24 × 25,000,000 shares
= $600,000,000
Then,
Net book value = Total assets - Total liabilities
= $200,000,000 - $100,000,000
= $100,000,000
Therefore,
Market to book ratio = $600,000,000 / $100,000,000
= 6.0
The specific The specific identification inventory costing method: Select one: A. Measures the ending inventory at the actual prices of the specific units sold during the period B. Is more appropriate for a firm selling construction equipment than for a firm selling greeting cards C. Is not a generally accepted method of pricing inventories D. Uses expected future acquisition costs rather than historical costs to measure the ending inventoryinventory costing method:
Answer:
A. Measures the ending inventory at the actual prices of the specific units sold during the period
Explanation:
The Specific identification inventory costing method is a strategy of getting the actual ending inventory cost. To get this cost requires the deliberate manual calculation of each of the remaining commodities brought on certain dates, at year-end inventory. The number gotten is then multiplied by their actual cost of purchase date. The result is then taken as the ending inventory cost.
Consequently, the purpose is to allocates the specific cost of each inventory item to cost of goods sold.
Hence, in this case, the correct answer is option A. Measures the ending inventory at the actual prices of the specific units sold during the period.
Sundown LLC makes patio heating lamps. Their factory in Topeka has 800 in stock, the factory in Dallas has 700, while the warehouse in Memphis needs 500, and the warehouse in Austin needs 650. It costs $12 to ship each lamp from Topeka to Memphis, $20 for Topeka to Austin, $15 from Dallas to Memphis, and $22 from Dallas to Austin. What is the most economical way to minimize its shipping costs and meet the demands of the two warehouses
Answer:
500T1 + 300T2 + 350D2 = $19,700
500 units shipped from Topeka to Memphis300 units shipped from Topeka to Austin350 units shipped from Dallas to AustinExplanation:
minimize the following equation:
12T1 + 20T2 + 15D1 + 22D2
where:
T1 = lamp sent from Topeka to Memphis
T2 = lamp sent from Topeka to Austin
D1 = lamp sent from Dallas to Memphis
D2 = lamp sent from Dallas to Austin
T1 + D1 = 500
T2 + D2 = 650
T1 + T2 ≤ 800
D1 + D2 ≤ 700
using solver, the optimal solution is: 500T1 + 300T2 + 350D2 = $19,700
Nancy Smith is the sole shareholder and employee of White Corporation, a calendar year C corporation that is engaged exclusively in accounting services. During the current year, White has operating income of $320,000 and operating expenses (excluding salary) of $150,000. Further, White Corporation pays Nancy a salary of $100,000. The salary is reasonable in amount and Nancy is in the 32% marginal tax bracket regardless of any income from White. Assuming that White Corporation distributes all after-tax income as dividends, how much total combined income tax do White and Nancy pay in the current year
Answer:
$63,325
Explanation:
Calculation for how much total combined income tax do White and Nancy pay in the current year
First step is to compute Corporate income tax
Since The Corporation is a personal service corporation which means that 35% flat tax rate will be applies to the Corporation taxable income which is calculated as:
Corporate income tax=($320,000-$100,000-$150,000)*35%
Corporate income tax=$70,000*35%
Corporate income tax=$24,500
Second step is to find the after-tax income that was distributed to Nancy
After-tax income = ($70,000 – $24,500)
After-tax income=$45,500
Third step is to compute for the income tax incur by Nancy on the salary income and on the dividend income
Income tax on salary income=($100,000×32%)
Income tax on salary income=$32,000
Income tax on dividend income=($45,500 ×15%)
Income tax on dividend income= $6,825
Total tax=$32,000+$6,825
Total tax=$38,825
Last step is to compute the total combined income tax
Total combined income tax =$24,500+$38,825
Total combined income tax= $63,325
Therefore the total combined income tax that White and Nancy pay in the current year will be $63,325
what is acknowledgement
Answer: it means to accept something or recognition
Both Bond Bill and Bond Ted have 5.8 percent coupons, make semiannual payments,
and are priced at par value. Bond Bill has 5 years to maturity, whereas Bond Ted has 25
years to maturity
a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price
of these bonds? (A negative answer should be indicated by a minus sign. Do not
round intermediate calculations and enter your answers as a percent rounded to 2
decimal places, e.g., 32.16.)
b. If rates were to suddenly fall by 2 percent instead, what would be the percentage
change in the price of these bonds? (Do not round intermediate calculations and
enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
a.
Percentage change in Bill Price = (91.8486 - 100) / 100 = -0.0815 or -8.15%
Percentage change in Bill Price = (78.1448 - 100) / 100 = -0.2186 or -21.86%
b.
Percentage change in Bill Price = (109.0298 - 100) / 100 = 0.0903 or 9.03%
Percentage change in Bill Price = (132.0946 - 100) / 100 = 0.3209 or 32.09%
Explanation:
To calculate the percentage change in the price of both the bonds, we assume that the par value of both the bonds is $100 each.
a.
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) both Bill and Ted = 100 * 0.058 * 6/12 = $2.9
Total periods (n) - Bill= 5 * 2 = 10
Total periods (n) - Ted= 25 * 2 = 50
As the bonds were previously price at par, the YTM or market interest rate would have been same as the coupon rate. Thus, the old market interest rate was 5.8%. Now as the interest rates have risen by 2% new interest rate will be = 5.8 + 2 = 7.8%
New r or YTM - both Bill and Ted = 7.8% * 6/12 = 3.9% or 0.039
The formula to calculate the price of the bonds today is attached.
Bond Price - Bill = 2.9 * [( 1 - (1+0.039)^-10) / 0.039] + 100 / (1+0.039)^10
Bond Price - Bill = $91.8486
Percentage change in Bill Price = (91.8486 - 100) / 100 = -0.0815 or -8.15%
Bond Price - Ted = 2.9 * [( 1 - (1+0.039)^-50) / 0.039] + 100 / (1+0.039)^50
Bond Price - Ted = $78.1448
Percentage change in Bill Price = (78.1448 - 100) / 100 = -0.2186 or -21.86%
b.
As the bonds were previously price at par, the YTM or market interest rate would have been same as the coupon rate. Thus, the old market interest rate was 5.8%. Now as the interest rates have fallen by 2% new interest rate will be = 5.8 - 2 = 3.8%
New r or YTM - both Bill and Ted = 3.8% * 6/12 = 1.9% or 0.019
The formula to calculate the price of the bonds today is attached.
Bond Price - Bill = 2.9 * [( 1 - (1+0.019)^-10) / 0.019] + 100 / (1+0.019)^10
Bond Price - Bill = $109.0298
Percentage change in Bill Price = (109.0298 - 100) / 100 = 0.0903 or 9.03%
Bond Price - Ted = 2.9 * [( 1 - (1+0.019)^-50) / 0.019] + 100 / (1+0.019)^50
Bond Price - Ted = $132.0946
Percentage change in Bill Price = (132.0946 - 100) / 100 = 0.3209 or 32.09%
(A) When The Percentage change in Bill Price is = (78.1448 - 100) / 100 = -21.86%
(B) When Percentage change in Bill Price is= (132.0946 - 100) / 100 = 32.09%
Compute The Bond Price
To compute the percentage change in the price of both the bonds, we suppose that the par value of both the bonds is $100 each.
(A) To estimate the price of the bond today, we will use the formula for the price of the bond. We suppose that the interest rate supplied is stated in annual terms. As the bond is a semi-annual bond, the coupon payment, number of times, and semi-annual YTM will be,
Coupon Payment (C) both Bill and Ted is = 100 * 0.058 * 6/12 = $2.9
The Total periods (n) - Bill is= 5 * 2 = 10
The Total periods (n) - Ted is = 25 * 2 = 50
As the bonds were previously priced at par, the YTM or market interest rate would have been the same as the coupon rate. Therefore, the old market interest rate was 5.8%. Present as the interest rates have risen by 2% new interest rate will be = 5.8 + 2 is = 7.8%
When New r or YTM - both Bill and also Ted is = 7.8% * 6/12 is = 3.9% or 0.039
Then The formula to estimate the price of the bonds today is attached.
Bond Price - Bill is = 2.9 * [( 1 - (1+0.039)^-10) / 0.039] + 100 / (1+0.039)^10
Then Bond Price - Bill is = $91.8486
When the Percentage change in Bill Price is = (91.8486 - 100) / 100 = -0.0815 or -8.15%
Then Bond Price - Ted = 2.9 * [( 1 - (1+0.039)^-50) / 0.039] + 100 / (1+0.039)^50
Then Bond Price - Ted = $78.1448
The Percentage change in Bill Price is = (78.1448 - 100) / 100 = -0.2186 or -21.86%
(B) Now As the bonds were theretofore priced at par, the YTM or market interest rate would have been identified as the coupon rate. Therefore, the old market interest rate was 5.8%. Present as the interest rates have fallen by 2% new interest rate will be = 5.8 - 2 is = 3.8%
New r or YTM - both Bill and Ted = 3.8% * 6/12 is = 1.9% or 0.019
The formula to compute the price of the bonds today is attached.
Then Bond Price - Bill = 2.9 * [( 1 - (1+0.019)^-10) / 0.019] + 100 / (1+0.019)^10
After that Bond Price - Bill = $109.0298
Now the Percentage change in Bill Price = (109.0298 - 100) / 100 = 0.0903 or 9.03%
Then Bond Price - Ted = 2.9 * [( 1 - (1+0.019)^-50) / 0.019] + 100 / (1+0.019)^50
Then Bond Price - Ted = $132.0946
Therefore, Percentage change in Bill Price = (132.0946 - 100) / 100 = 0.3209 or 32.09%
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Crador Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,100 units. 14,000 units were started into the process during January. On January 31, the inventory consisted of 800 units. Equivalent units for conversion costs were 14,800. What percentage complete was the ending inventory with respect to conversion costs on January 31 using the weighted-average method
Answer: 62.5%
Explanation:
Equivalent units = Units completed and transferred out + percentage completed of ending inventory
14,800 = (1,100 + 14,000 - 800) + Percentage
14,800 = 14,300 + Percentage amount completed
Percentage amount completed = 14,800 - 14,300
Percentage amount completed = 500 units
Percentage = Ending equivalent units / ending inventory
= (500/800) * 100
= 62.5%
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Statement Price Control Binding or Not
The government prohibits gas stations from selling gasoline for more than $2.50 per gallon.
The government has instituted a legal minimum price of $3.40 per gallon for gasoline.
There are many teenagers who would like to work at gas stations, but they are not hired due to minimum-wage laws.
Answer:
Price ceiling binding
price floor binding
Price floor binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
The maximum price ($2.50) is less than the equilibrium price($3) . So it is a binding price ceiling
The minimum price ($3.40) is greater than the equilibrium price($3) . So it is a binding price floor
Assume real per capita GDP in North Metropolania is $4,000 while in East Quippanova it is $1,000. The annual growth rate in North Metropolania is 2.33%, while in East Quippanova it is 7%. How many years will it take for East Quippanova to catch up to the real per capita GDP of North Metropolania?
a. about 10 years
b. about 30 years
c. about 40 years
d. about 120 years
e. East Vice City will never be able to catch up with North Midgar.
What will the income of the two countries be when it is equal?
Answer:
B
Explanation:
Rule of 70
70/2.33=30.04
Income will be $8,000
A perpetuity pays $170 per year and interest rates are 8.2 percent. How much would its value change if interest rates increased to 9.7 percent
Answer:
$320.59 decrease
Explanation:
The computation of the change in the value is shown below:
As we know that
The Value of perpetuity is
= Annual inflows ÷ interest rate
Current value is
= $170 ÷ 0.082
= $2,073.17
And,
New value is
= $170 ÷ 0.097
= $1,752.58
Now change in value is
= $2,073.17 - $1,752.58
= $320.59 decrease
We simply applied the above formula
The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 40 $ 10 July 13 Purchase 200 11 July 25 Sold ( 100 ) $ 14 July 31 Ending Inventory 140 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under (a) FIFO, (b) LIFO, and (c) weighted average cost. Assume a periodic inventory system is used.
Answer:
(a) FIFO (b) LIFO (c) weighted
average cost:
Cost of goods available for sale $2,600 $2,600 $2,600
Ending inventory 1,540 1,500 1,516
Sales $1,400 $1,400 1,400
Cost of goods sold 1,060 1,100 1,083
Gross profit $340 $300 $317
Explanation:
a) Data and Calculations:
Units Unit Cost Unit Selling Price
July 1 Beginning Inventory 40 $ 10 $400
July 13 Purchase 200 11 2,200
July 25 Sold ( 100 ) $ 14 (1,400)
July 31 Ending Inventory 140
July 31 Goods available 240
Average unit cost = $10.83 ($2,600/240)
FIFO:
Cost of goods available for sale $2,600 ($400 + $2,200)
Ending inventory 1,540 (140 * $11)
Sales $1,400 ($14 * 100)
Cost of goods sold 1,060 (40 * $10 + 60 * $11)
Gross profit $340
LIFO:
Cost of goods available for sale $2,600 ($400 + $2,200)
Ending inventory 1,500 (40 * $10 + 100 * $11)
Sales $1,400 ($14 * 100)
Cost of goods sold 1,100 (100 * $11)
Gross profit $300
Weighted Average:
Cost of goods available for sale $2,600 ($400 + $2,200)
Ending inventory 1,516 (140 * $10.83)
Sales $1,400 ($14 * 100)
Cost of goods sold 1,083 (100 * $10.83)
Gross profit $317
An investor plans to divide $200,000 between two investments. The first yields a certain profit of 10%, whereas the second yields a profit with expected value 18% and standard deviation 6%. If the investor divides the money equally between these two investments, find the mean and standard deviation of the total profit.
Answer:
mean = 14%; standard deviation = 3%
Explanation:
We treat the combined investment as a portfolio, with 50% each of the portfolio size invested in each asset.
Asset A: return (r) = 10%; standard deviation (s) = 0
Asset B: return (r) = 18%; standard deviation (s) = 6%
Portfolio mean (R) =
[tex](w_{1}*r_{1})+(w_{2}*r_{2})\\=(0.5*0.1)+(0.5*0.18)\\=0.05+0.09\\=0.14[/tex]
Therefore, portfolio mean = 14%.
Portfolio standard deviation (S) = [tex][(w_{1}^{2}*s_{1}^{2})+(w_{2}^{2}*s_{2}^{2})+(2w_{1} w_{2}COV_{12} )]^{\frac{1}{2}}[/tex]
Since no information was given about portfolio covariance, we will assume it is zero.
[tex]S=[(w_{1}^{2}*s_{1}^{2})+(w_{2}^{2}*s_{2}^{2})]^{\frac{1}{2}}\\=[(0.5^{2} *0^{2} )+(0.5^{2} *0.06^{2} )]\\=0.25*0.0036\\=0.03[/tex]
Therefore, portfolio standard deviation = 3%.
Where can you find an image database of free and simple graphics in many
slide presentation programs?
A. The new slide button
B. Users of slide software do not have access to simple and free
graphics.
C. Clip art
D. The View tab on your toolbar
SUBMIT
Clip art is where you can find an image database of free and simple graphics in many slide presentation programs. Hence, option C is appropriate.
What is Clip Art?A sort of graphic art is clip art (also known as clipart or clipart). Premade visuals known as pieces are being used to highlight any medium. The clip art is widely utilized today and is available in numerous print and electronic formats. But nowadays, the majority of clip art is produced, shared, and employed digitally.
To be placed into a document, clip art is artwork or a picture created by multiple artists to match a variety of different categories, such as humans, animals, schools, etc. For instance, Microsoft Word includes several 100 different clip art images that may be quickly and easily added to a document.
Infographics, periodicals, mobile application icons, corporate presentations, trademarks and logos, websites, and presentations all employ clip art pictures. Because they include drawings and visual components, people employ clip art. They are time-savvy because they have been pre-designed. Hence, option C is correct.
Learn more about Clip art here:
https://brainly.com/question/1889758
#SPJ2
Answer:
Clip
Explanation:
If invests $12,672.32 now and she will receive $30,000 at the end of 10 years, what annual rate of interest will she be earning on her investment
Answer:
Rate of interest (r) = 9%
Explanation:
Given:
Amount invested (P) = $12,672.32
Future amount (A) = $30,000
Number of year (n) = 10
Find:
Rate of interest (r)
Computation:
A=P(1+r)ⁿ
30,000 = 12,672.32(1+r)¹⁰
2.3673=(1+r)¹⁰
1.090 = (1+r)
r = 0.09 or 9%
Rate of interest (r) = 9%
The following are the typical classifications used in a balance sheet:
a. Current assets
b. Investments and funds
c. Property, plant and equipment
d. Intangible assets
e. Other assets
f. Current liabilities
g. Long-term liabilities
h. Paid-in-capital
i. Retained earnings
Required:
For each of the following 2016 balance sheet items, use the letters above to indicate the appropriate classification category.
(If the item is a contra account, select the appropriate letter with a minus sign.)
Item Category
1. Accrued interest payable
2. Franchise
3. Accumulated depreciation
4. Prepaid insurance, for 2017
5. Bonds payable, due in 10 years
6. Current maturities of long-term debt
7. Note payable, due in three months
8. Long-term receivables
9. Restricted cash (used to retire bonds in 10 years)
10. Supplies
11. Machinery
12. Land, in use
13. Deferred revenue
14. Copyrights
15. Preferred revenue
16. Land, held for speculation
17. Cash equivalents
18. Wages payable
Answer and Explanation:
The categorizaton is shown below:
1. f. Current liabilities
2. d. Intangible assets
3. c. Property, plant, and equipment
4. a. Current assets
5. g. Long Term liabilities
6. f Current Liabilities
7. f Current Liabilities
8. b Investment and funds
9. b Investment and funds
10. a. Current assets
11. c. Property, plant, and equipment
12. c. Property, plant, and equipment
13. f. Current liabilities
14. d. Intangible assets
15. h paid in capital
16. b Investment and funds
17. a. Current assets
18. f Current Liabilities
During 20x1, Orca Corp. decided to change from the FIFO method of inventory valuation to the weighted-average method. Inventory balances under each method were as follows:________.
FIFO Weighted-average
January 1, 20x1 $71,000 $77,000
December 31, 20x1 $79,000 $83,000
Orca's income tax rate is 30%.
In its 2005 financial statements, what amount should Orca report as the cumulative effect of this accounting change?
a) $2,800
b) $4,000
c) $4,200
d) $6,000
Answer:
Orca Corp.
The cumulative effect of this accounting change in estimate is:
That the cost of goods sold will be reduced by:
b) $4,000
Explanation:
a) Data and Calculations:
FIFO Weighted-average Difference
January 1, 20x1 $71,000 $77,000 $6,000
December 31, 20x1 $79,000 $83,000 $4,000
Orca's income tax rate is 30%.
Note that the difference in the cost of the beginning inventory does not have any effect in the current period's financials. It was an estimate that was done previously and Orca does not need to restate its financials for the previous year because of the change. The accounting change only affects the current period.
Choosing to go to get a job right out of high school instead of going to college is an example of a(n) _____.
fixed cost
opportunity cost
variable cost
none of the above
Answer:
opportunity cost
Explanation:
Opportunity cost is the forfeited benefits from the next best alternative. In every decision, one has to choose from several available options. Each of the options has its advantages. After selecting the best option, the benefits of the second-best alternatives is the opportunity cost.
Choosing between working and attending college is an example of opportunity. Each of the two options has its advantages. Preferring one alternative means sacrificing the benefits of the other.
On January 1, 20Y8, Crabb & Co. sold land to ASP, Inc. and accepted a two-year, $500,000 face value note as payment. 6% interest is due each December 31. ASP’s market rate of borrowing is 12%. Crabb originally purchased the land for $80,000 in 20Y1. REQUIRED Answer the following questions regarding the exchange. Round all amounts to the nearest whole dollar. 1. Was the note issued at a discount or a premium? Discount 2. What is the fair market value of the land at the date of exchange? $449,297 3. What is the gain or loss on the sale of the land? $369,297 4. How does this transaction affect Crabb & Co.’s balance sheet on the date of the exchange? Please include account names, dollar values, and whether the account increased or decreased.
Answer:
1. Discount
2. $449,298.47
3. $369,298.47 gain
4. land reduces by $80,000, investment increases by $449,298.47, reserves increases by $369,298.47
Explanation:
Question 1
Using the formula below
[tex]Price=\frac{I_{1}}{1+r} +\frac{I_{2}+F}{(1+r)^{2}}[/tex]
where
I = interest rate, which is 6% of 500,000 = 30,000
F = Face value, 500,000
r = borrowing cost = 12%
Therefore, the price of the note at the time it was used for payment was
[tex]Price=\frac{30,000}{1.12} +\frac{30,000+500,000}{(1.12)^{2}}[/tex]
= $449,298.47.
As the price is lower than the face value of the note, the note was issued at a discount.
Question 2
The fair market value of the note is $449,298.47, the compute price in question 1.
Question 3
The gain/loss on the sale of the land
= sale price - purchase price
= $449,298.47 - 80,000
= $369,298.47.
Question 4
The transaction would affect Crabb & Co's balance sheet as follows.
Asset side:
land reduces by $80,000
investment increases by $449,298.47
Equity & liabilities side:
reserves increases by $369,298.47
Leno Company sells goods to the Fallon Company for $11,000. It offers credit terms of 3/10, n/30. If Fallon Company pays the invoice within the discount period, Leno Company will record a debit to Cash in the amount of:
Answer:
the amount that debited to the cash account is $10,670
Explanation:
The computation of the amount that debited to the cash account is shown below:
= Account receivable - discount allowed
= $11,000 - $11,000 × 3%
= $11,000 - $330
= $10,670
Hence the amount that debited to the cash account is $10,670
We simply applied the above formula so that the correct value could come
And, the same is to be considered
