Answer and Explanation:
The computation is shown below:
a. Marpor's value without leverage is
But before that first we have to calculate the required rate of return which is
The Required rate of return = Risk Free rate of return + Beta × market risk premium
= 5% + 1.1 × (15% - 5%)
= 16%
Now without leverage is
= Free cash flows generates ÷ required rate of return
= $16,000,000 ÷ 16%
= $100,000,000
b. And, with the new leverage is
= (Free cash flows with debt ÷ required rate of return) + (Tax rate × increase of debt)
= ($15,000,000 ÷ 0.16) + (0.35 × $40,000,000)
= $93,750,000 + $14,000,000
= $107,750,000
a __ in the money supply will cause interest rates to decrease, which, in turn, causes spending to__
Answer:
A increase in the money supply will cause interest rates to decrease, which, in turn, causes spending to increase.
Answer:
The answer is increase, increase (Apex)
Explanation:
A(n) increase in the money supply will cause interest rates to decrease, which, in turn, causes spending to increase.
An individual wants to have $95,000 per year to live on when she retires in 30 years. The individual is planning on living for 20 years after retirement. If the investor can earn 6% during her retirement years and 10% during her working years, how much should she be saving during her working life
Answer:
The amount she would be saving during her working life is $1,089,64 and the deposit required for each year is $6,624.21
Explanation:
Solution
Given that:
The amount of income needed for retirement income = P×[1-(1÷(1+r)^n)]÷r
Now,
The Interest rate per annum =6.00%
The Number of years = 2
The Number of compoundings per annum = 1
The Interest rate per period ( r)=6.00%
The period per payment (P)=$ 95,000
The Amount required for retirement income = 95000*[1-(1/(1+6%)^95000]/6% =$1,089,643
Now,
Required deposit for every year (P)=FVA÷([(1+r)^n-1]÷r)
The Interest rate per annum = 10.00%
The Number of years= 30
The number payments per per annum =1 The Interest rate per period ( r)=10.00%
The Number of periods (n)=30
Thus,
The Future value of annuity (FVA) = $1,089,643
Hence the deposit required for each year is = 1089643/(((1+10%)^30-1)/10%)
= $6,624.21
161. On July 1 of the current calendar year, Olive Co. paid $7,500 cash for management services to be performed over a two-year period beginning July 1. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 of the current year for Olive would include:
Answer and Explanation:
The Journal entry is shown below:-
Expenses Dr, $1,875 ($7,500 × 6 ÷ 24)
To Prepaid expenses $1,875
(Being expenses is recorded)
We consider 6 months from July 1 from Dec 31 and we consider 24 months as $7,500 is for 2 years period.
Here we debited the expenses as it increases the expenses and we credited the prepaid expenses as decrease the assets
Sports Emporium has two operating segments: sporting goods and sports apparel. The income statement for each operating segment is presented below. Required: 1. Complete the "%" columns to be used in a vertical analysis of Sports Emporium's two operating segments. Express each amount as a percentage of sales. (Round your answers to 1 decimal place.) 2. Use vertical analysis to compare the profitability of the two operating segments. Which segment has a higher net income as a percentage of net sales? Sporting Goods Sports Apparel rev: 12_07_2016_QC_CS-
Answer: Please refer to Explanation
Explanation:
1. When using Vertical Analysis, every item in the Income statement is depicted as a percentage of sales.
Sporting Goods Vertical Analysis
Net Sales = 1,800,00/1,800,000 = 100%
Cost of Goods Sold = 1,040,000/1,800,000 = 57.7%
Gross Profit = 760,000 /1,800,000 = 42.2%
Operating Expenses = 450,000 /1,800,000 = 25%
Operating Income = 310,000/1,800,000 = 17.2%
Other Income (Expense) = 20,000 /1,800,000 = 1.1%
Income before tax = 330,000 /1,800,000 = 18.3%
Income tax Expense = 80,000/1,800,000 = 4.4%
Net Income = 250,000/1,800,000 = 13.9%
Sports Apparel Vertical Analysis
Net Sales = 970,000/970,000 = 100%
Cost of Goods Sold = 440,000/970,000 = 45.4%
Gross Profit = 530,000/970,000 = 54.6%
Operating Expenses = 340,000/970,000 = 35.0%
Operating Income = 190,000/970,000 = 19.6%
Other Income (Expense) = 15,000/970,000 = 1.54%
Income before tax = 175,000/970,000 = 18.0%
Income tax Expense = 70,000/970,000 = 7.2%
Net Income = 105,000/970,000 = 10.8%
2. Comparison using Vertical Analysis
Sporting Goods earn a higher net income than Sport Apparel due to them paying a lower tax.Sports Apparel earns a higher Gross Profit than Sporting Goods due to them having a lower Cost of Goods sold. Sports Apparel have higher Operating Expenses than Sporting Goods but still have a higher Operating Income.I have attached the income statement required for the question.
4 pressures to your income (financial)
Zenith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.TransactionsMar. 1 Paid rent for the month, $4,000. 3 Paid advertising expense, $1,350. 5 Paid cash for supplies, $1,800. 6 Purchased office equipment on account, $11,500. 10 Received cash from customers on account, $8,600. 15 Paid creditor on account, $3,180. 27 Paid cash for miscellaneous expenses, $700. 30 Paid telephone bill for the month, $550. 31 Fees earned and billed to customers for the month, $37,200. 31 Paid electricity bill for the month, $830. 31 Paid dividends, $2,000.Journalize the preceding selected transactions for March 2018 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Date Particulars Debit Credit
Mar. 1 Rent expense 4000
Cash 4000
Paid rent for the month
Mar. 3 Advertising expense 1350
Cash 1350
Paid advertising expense
Mar. 5 Supplies 1800
Cash 1800
Paid cash for supplies
Mar. 6 Equipment 11500
Accounts payable 11500
Purchased office equipment
on account
Mar. 10 Cash 8600
Accounts receivable 8600
Received cash from customers
on account
Mar. 15 Accounts payable 3180
Cash 3180
Paid creditor on account
Mar. 27 Miscellaneous expenses 700
Cash 700
Paid cash for miscellaneous
expenses
Mar. 30 Utilities expenses 550
Cash 550
Paid telephone bill for the month
Mar. 31 Accounts receivable 37200
Fees earned 37200
Fees earned and billed to
customers for the month
Mar. 31 Utilities expenses 830
Cash 830
Paid electricity bill for the month
Mar. 31 Dividends 2000
Cash 2000
Paid dividends
Suppose the price of movie tickets decline. The income effect means that :
A. people will purchase more movie tickets and less of other goods.
B. people will rent fewer movies to watch at home.
C. people will making lower incomes from selling movie tickets.
D. people will purchase more of all normal goods.
E. people will be more likely to seek a higher-paying job.
Answer:
a would be the answer for the question
The Satellite System for the United States is estimated to cost $1 Billion. The winner bidder has committed to complete it in four years with the following milestone payments:
First payment: $100m at the start of first year.
Second Payment: $350m at the end of second year
Third payment: $300m at the end of third year
Final payment: $250m on completion at end of 4th year.
The annual operations &maintenance after completion is estimated to be $60 million, payable at the end of each year and with 5% annual increase thereafter.Your customer has committed to pay $250 million annually at the end of the each year after completion, with the first payment at the end of 5th year from start and with 5% annual increase thereafter. Assuming 8% discount rate and 2% inflation each year from the very beginning, when does the project achieve a positive NPV?
Answer: A positive NPV is gotten after 8 years
Explanation:
The net present value is also referred to as the net present worth. The net present value applies to a series of cash flows that occurs at different times.
The present value of cash flow depends on time interval between now and the cash flow and also depends on discount rate. The net present value accounts for time value of money.
The explanation for the question has been attached.
A positive NPV is gotten after 8 years.
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month.
Cost Formulas
Direct labor $16.20q
Indirect labor $4,300 $1.70q
Utilities $5,600 $0.70q
Supplies $1,400 $0.20q
Equipment depreciation $18,400 $2.90q
Factory rent $8,200
Property taxes $2,700
Factory administration $13,200 $0.80q
The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below.
Actual Cost Incurred in March
Direct labor $ 66,360
Indirect labor $ 10,620
Utilities 8,930
Supplies 2,450
Equipment depreciation $ 30,000
Factory rent 8,600
Property taxes $ 2,700
Factory administration $ 15,796
Required 1:
Prepare the Production Department's planning budget for the month
Required 2:
Prepare the Production Department's flexible budget for the month.
Answer:
A)$148,300
B)$143,800
Explanation:
Production department planning budget :
Budgeted labor hours = 4200
Direct labor $16.20(4200) = $68040
Indirect labor $4,300+$1.70(4200) = $11440
Utilities $5,600+$0.70(4200) = $8540
Supplies $1,400+$0.20(4200) = $2240
Equipment depreciation $18,400+$2.90(4200) = $30580
Factory rent $8,200
Property taxes $2,700
Factory administration $13,200+$0.80(4200) = $16560
Total - $(68040+11440+8540+2240+30580+8200+2700+16560) = $148,300
2.) Flexible budget for the month :
Actual labor hours = 4000
Direct labor $16.20(4000) = $64800
Indirect labor $4,300+$1.70(4000) = $11100
Utilities $5,600+$0.70(4000) = $8400
Supplies $1,400+$0.20(4000) = $2200
Equipment depreciation $18,400+$2.90(4000) = $30000
Factory rent $8,200
Property taxes $2,700
Factory administration $13,200+$0.80(4000) = $16400
Total cost - $(64800+11100+8400+2200+30000+8200+2700+16400) = $143,800
Preparing production budget and direct materials budget The sales department of P. Gillen Manufacturing Company has forecast sales in March to be 20,000 units. Additional information follows: Finished goods inventory, March 1 . ........................... 3,000 units Finished goods inventory required, March 31 .................. 1,000 units Materials used in production:
Required
Inventory Inventory Standard
March 1 March 31 Cost
A (one gallon per unit) . . . . . . . . . . . . . . 500 gal 1,000 gal $2 per gal
B (one pound per unit) . . . . . . . . . . . . . . 1,000 lb 1,000 lb $1 per lb
Prepare the following:__________.
a. A production budget for March (in units).
b. A direct materials budget for the month (in units and dollars).
Answer:
Production budget = 18,000 units
Material budget(units) :
Material A = 18,500 gallons
Material B = 18,000 pounds
Material budget($) $36,500
Explanation:
The production budget = Sales + closing inventory - opening inventory
= 20,000 + 1000 - 3000= 18,000 units.
Production budget = 18,000 units
Material budget(units) :
Material budget = Material usage + closing inventory - opening inventory
Material A =( 18,000× 1 ) + 1000- 500= 18,500 gallons
Material B = (18,000× 1) + 1000 - 1000 = 18,000 pounds
Material budget($) :
Material A = 18,500 gallons × $2 per gallon = $18,500
Material B = 18,000 pounds × $1 per pound = $18,000
Total $36,500
hope helps you
have a nice day
Joe Jones is preparing the statement of cash flows for Apricot Inc. He has determined that the net cash flow provided by operating activities for Apricot is an inflow of $45,042, the net cash flow used in investing activities for Apricot is $20,831, and the net cash flow used in financing activities for Apricot is $27,997. Joe has also determined that Apricot's beginning cash account balance is $12,083. The ending cash account balance for Apricot Inc is
Answer:
The ending cash account balance for Apricot Inc is $8,297.
Explanation:
There are three components in the statement of cash flows:
Operating activities - Here, non-cash items applied to deriving the net income based on the accrual basis are adjusted for. Also, the movement in working capital and liabilities are accounted for.Investing activities encompass the assets purchased to generate the net income.Financing activities: These include activities that are geared towards improving the capital structure of the organization.In deriving the cash flows at the end of the period, the balances in the activities above are added up, either outflow or inflow. Then the addition is added to the beginning balance of cash flows. This is done below.
Net cash flow provided by operating activities $45,042
Net cash flow used in investing activities ($20,831)
Net cash flow used in financing activities ($27,997)
Beginning cash account balance $12,083
Ending cash account balance $8,297
On December 31, 2021, Larry's Used Cars had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $53,600 and $1,325, respectively. During 2022, Larry's wrote off $1,465 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $1,280 at December 31, 2022. Bad debt expense for 2022 would be:
Answer:
$1,420
Explanation:
The computation of the bad debt expense is shown below:
As we know that
Ending balance of allowance for uncollectible accounts = Beginning balance of allowance for uncollectible accounts + bad debt expense - written off amount
$1,280 = $1,325 + bad debt expense - $1,465
So, the bad debt expense for the year 2022 is $1,420
Basically we applied the above formula to find out the bad debt expense
Levi Corporation (a U.S. company) has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the country in which the foreign entity is located. On December 2, 20X1, Levi sold confectionary items to a foreign company at a price of 50,000 yen when the direct exchange rate was 1 yen = $1.15. The account has not been settled as of the year ended December 31, 20X1, when the exchange rate had changed to 1 yen = $1.12. The foreign exchange gain or loss on Levi's records at year-end for this transaction will be:______
A. No gain or loss is reported
B. $1,500 loss
C. $1,500 gain
Answer:
c
Explanation:
On January 1, 2017, the City of Graf pays $68,000 for a work of art to display in the local library. The city will take appropriate measures to protect and preserve the piece. However, if the work is ever sold, the money received will go into unrestricted funds. The work is viewed as inexhaustible, but the city has opted to depreciate this cost over 20 years (using the straight-line method).Required:a. How is this work to be reported on the government-wide financial statements for the year ended December 31, 2017?b. How is this work to be reported in the fund financial statements for the year ended December 31, 2017?
Answer: The answer has been attached below
Explanation:
Financial statements are the formal records of financial activities and position of an individual, a business, or other entity. The relevant financial information is typically presented in a structured manner and in an understandable form.
Financial statements can include balance sheet, income statement, statement of cash flows, the notes to accounts and statement of changes in equity.
The solution to the question is attached.
Breezy Company is considering the replacement of equipment that has a current book value of $340,000. Breezy has an oppprtunity to sell the equipment for $240,000. The cost of replacing the old equipment with a new machine is $300,000. The cost of operating the new equipment is $20,000 per year less than the cost of operating the old equipment. The new equipment has a 5-year useful life. The amount of the sunk cost for this replacement decision is
Answer:
$340,000
Explanation:
A sunk cost is a cost that has already been incurred and cannot be affected by any decision that someone makes. E.g. once you pay an expense like rent, the cost will not be recovered or altered by any decision that you make. Sunk costs is simply money that has been spent and cannot be recovered.
The Freed Corporation produces three products, X, Y, Z, from a single raw material input. Product Y can be sold at the split-off point for total annual revenues of $50,000, or it can be processed further at a total annual cost of $16,000 and then sold for $68,000. Which of the following statements is true concerning Product Y?
a. Product Y should be sold at the split-off point rather than processed further.
b. The annual financial advantage of processing Product Y further is $18,000.
c. The annual financial advantage of processing Product Y further is $68.000.
d. The annual financial advantage from processing Product Y further is $2.000
Answer:
The correct option is D,the annual financial advantage from processing Product Y further is $2.000
Explanation:
The decision of whether or not to further to process product Y is dependent upon the benefit that is derivable from further processing which is computed using the below formula:
benefit/(cost) of further processing=sales value after processing-cost of further processing-sales value at split-off point
sales value after processing is $68,000
additional cost of further processing is $16,000
sales value at split-off point is $50,000
benefit/(cost)=$68,000-$16,000-$50,000=$2,000
Of customers who register a complaint, ________. all will do business with the company again because they are unwilling to dedicate the effort required to find another vendor none will do business with the company again customers whose complaints are satisfactorily resolved are more likely to provide publicity than those who are dissatisfied the speed of resolution has no impact on the likelihood of repeat business some will do business with the company again if their complaint is resolved
Answer:
Some will do business with the company again if their complaint is resolved.
Explanation:
In the current situations that surrounds marketing and different businesses, it is now inevitable for customers not to complain and at such can lead to loss of customer(s).
Complaints from a customer primarily highlights a problem, this ranges from problem with your product to employees or internal processes, and also by hearing these problems directly from your customers, you can investigate and improve to prevent further complaints in the future.
That is why it is said that some customers will likely do business with the company again if their complaint are been resolved.
Answer:
some will do business with the company again if their complaint is resolved
Explanation:
Complaints are made by customers who are seeking better services from a business as regards it's products and services.
When complaints are resolved customers usually do business again with the company.
Customers who do not complain are those who notice the problem with the products or services offered and move to a competitor.
For a customer to make a complaint it means he is still loyal to the company but wants improvement in some area of product and services offering.
Income statements for Solomon Company for 2018 and 2019 follow: SOLOMON COMPANY Income Statements 2019 2018 Sales $ 200,600 $ 180,600 Cost of goods sold 143,900 121,900 Selling expenses 21,500 19,500 Administrative expenses 12,300 14,300 Interest expense 3,800 5,800 Total expenses $ 181,500 $ 161,500 Income before taxes 19,100 19,100 Income taxes expense 6,200 3,100 Net income $ 12,900 $ 16,000 Required Perform a horizontal analysis, showing the percentage change in each income statement component between 2018 and 2019. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
Answer:
Explanation:
In vertical analysis , each item of the income statement is shown as a percentage of sales , while in horizontal analysis , the percentage growth in each item of the income statement from 2018 -2019 is calculated.
Horizontal Analysis
Particulars 2018 2019 % Change
Sales 180,600 200,600 11.07
Cost of goods 121,900 143,900 18.04
Gross profit 58,700 56,700 (3.4)
Selling Exp 19,500 21,500 10.26
Admin Exp 14,300 12,300 (13.97)
Int. Exp 5800 3,800 (34.48)
Total Exp. 161,500 181,500 12.38
PBT 19,100 19,100 0
Income tax 3,100 6,200 100
Net Income 16,000 12,900 (19.38)
Vertical Analysis.
Particulars 2019 % 2018 %
Sales 200,600 100 180,600 100
Cost of Goods 143,900 71.74 121,900 67.50
Gross profit 56,700 28.27 58,700 32.50
Selling Exp. 21,500 10.72 19,500 10.80
Admin Exp. 12,300 6.13 14,300 7.92
Interest Exp 3,800 1.89 5,800 3.21
Total Exp 181,500 90.48 161,500 89.42
PBT 19,100 9.52 19,100 10.58
Income tax 6,200 3.09 3,100 1.71
Net Income 12,900 6.43 16,000 8.86
Kalen is a seventeen-year-old minor who has just graduated from high school. He is attending a university two hundred miles from home and has contracted to rent an apartment near the university for one year at $500 per month. He is working at a convenience store to earn enough income to be self-supporting. After living in the apartment and paying monthly rent for four months, he becomes involved in a dispute with his landlord. Kalen, still a minor, moves out and returns the key to the landlord. The landlord wants to hold Kalen liable for the balance of the payments due under the lease. Discuss fully Kalen's liability in this situation.
Answer:
Kalen is not liable to pay the eight months remaining under the lease,
Explanation:
Kalen is not liable to pay the eight months remaining under the lease, since he has legally disaffirmed from the contract by giving the keys back to the landlord. He is not to be bound to the contract. He can disaffirm the contract but remains liable for the value of goods he used (4 months).
The landlord cannot hold him liable for the remaining payment because As a minor Kalen does not have the legal capacity to enter into a contract except in sport or entertainment. Minors are not bestowed civil or political rights because the law says they are too young to handle these responsibilities.
According to the law a contract is valid when both parties have the legal capacity to enter into the contract. Otherwise it is void. Therefore Kalen owes no liability to her landlord
A guitar manufacturer is considering eliminating its electric guitar division because its $76,000 expenses are higher than its $72,000 sales. The company reports the following expenses for this division.
Avoidable Expenses Unavoidable Expenses
Cost of goods sold $56,000
Direct expenses 9,250 $1,250
Indirect expenses 470 1,600
Service department costs 6,000 1,430
Should the division be eliminated?
Answer:
If the Division is eliminated, income will decrease by $280
Explanation:
Giving the following information:
Sales= $72,000
Expenses= $76,000 sales.
Avoidable Expenses - Unavoidable Expenses
Cost of goods sold: $56,000
Direct expenses: 9,250 - $1,250
Indirect expenses: 470 - 1,600
Service department costs: 6,000 - 1,430
We need to determine if eliminating the Division will increase income.
Current loss= $4,000
Effect on income= unavoidable costs - current loss
Effect on income= -(1,250 + 1,600 + 1,430) + 4,000
Effect on income= $280 decrease
Treasury Stock Transactions Lawn Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Lawn Spray Inc. reacquired 50,000 shares of its common stock at $51 per share. On June 14, 24,000 of the reacquired shares were sold at $60 per share, and on November 23, 18,000 of the reacquired shares were sold at $56. a. Journalize the transactions of January 31, June 14, and November 23. For a compound transaction, if an amount box does not require an entry, leave it blank.
Answer and Explanation:
The journal entries are shown below:
On Jan 31
Treasury stock (50,000 shares × $51) $2,550,000
To cash $2,550,000
(being the reacquired shares are recorded)
For recording this we debited the treasury stock as it increased the blaance of treasury stock and credited the cash as it reduced the assets
On June 14
Cash (24,000 shares × $60 ) $1,440,000
To Treasury stock (24,000 shares × $51) $1,224,000
To Paid-In Capital from Sale of Treasury Stock $216,000
(Being the reacquired shares are sold)
For recording this we debited the cash as it increased the assets and credited the treasury stock and paid -in the capital as it reduced the treasury stock balance and increased the stockholder equity
On Nov 23
Cash (18,000 shares × $56 ) $1,008,000
To Treasury stock (18,000 shares × $51) $918,000
To Paid-In Capital from Sale of Treasury Stock $90,000
(Being the reacquired shares are sold)
For recording this we debited the cash as it increased the assets and credited the treasury stock and paid -in the capital as it reduced the treasury stock balance and increased the stockholder equity
Redistributive philosophies
Complete the following table by selecting the redistributive philosophy that matches each statement.
Statement Utilitarianism Libertarianism Liberalism
The government should choose policies
to maximize the total utility of everyone
in society.
The government should choose policies
deemed to be just, as evaluated by an
impartial observer behind a "veil of ignorance."
The government should punish crimes and
enforce voluntary agreements, but not redistribute income.
Suppose that Ginny believes that the progressive U.S. tax system is flawed because it supports equality of outcomes rather than equality of opportunity. Which re-distributive philosophy is consistent with Ginny's view?
A. Liberalism
B. Libertarianism
C. Utilitarianism
Answer:
The government should choose policies to maximize the total utility of everyone in society - Utilitarianism
The central goal of Utilitarianism is simply to maximize everyone's benefit (or utility) in society.
The government should choose policies deemed to be just, as evaluated by an impartial observer behind a "veil of ignorance." - Liberalism
This is the central idea of a "Theory of Justice", a book written by John Rawls. This idea has come to represent the ethical justification behind the redistributive philosophy of liberals.
The government should punish crimes and enforce voluntary agreements, but not redistribute income - Libertarianism
Libertarians believed that income redistribution by the government is unfair because the government takes income from the some people without their consent, and gives it to other people. Libertarians support private charity instead.
Suppose that Ginny believes that the progressive U.S. tax system is flawed because it supports equality of outcomes rather than equality of opportunity. Which re-distributive philosophy is consistent with Ginny's view?
Both liberalism and libertarianism can be ascribed to Ginny's view. Liberals and libertarians do not support equality of outcome, they support equality of opportunity.
The difference lies in the degree of inequality that they are able to tolerate: liberals only tolerate inequality up to a certain port, while libertarians do not really have a problem with inequality as long as it is the result of market outcomes.
The utilitarian theory states that the government should choose policies that enhance the total utility of everyone in society.
Utilitarianism's central aim is to maximize everyone's benefit (or utility) in society.
The government should implement policies that are deemed just by an impartial observer operating behind a "veil of ignorance." - Sensitivity
This is the central concept in Robert Rawls' work, "Theory of Justice." This system has come to represent liberals' ethical rationale for their redistributive worldview.
Modern liberalism believes the government should punish crimes and enforce voluntary agreements, but not redistribute income.
Libertarians found that government income redistribution was unjust because it takes the money from some people against their agreement and distributes it to others. Instead, libertarians advocate for private philanthropy.
Ginny's views can be attributed to feminism and libertarianism. Liberals and libertarians believe in inequality rather than equality of result.
The difference would be in the degree of inequality they can tolerate: liberals could only accept disparity up to a certain amount, but libertarians do not even mind injustice as long as it's the product of market results.
To know more about the redistributive policies, refer to the link below:
https://brainly.com/question/16733925
For the following questions, you need to determine whether each of the four factors given creates a positive demand shock, a negative demand shock, a positive supply shock, or a negative supply shock for the market in bold. For example, if you are told, "Automobile workers receive higher wages: automobiles," you would indicate that the supply of automobiles will decrease and the supply curve will shift to the left.
Part1:
A. Birth rates in the United States decline: diapers
B. The government provides subsidies to ethanol producers: ethanol
C. Starbucks coffee drinkers suffer due to a small coffee harvest: Starbucks coffee
D. Consumer incomes decrease: public transportation
Part2:
A. The price of beer increases: Solo cups
B. Henry Ford develops assembly-line production: automobiles
C. Natural gas producers are making large economic losses: natural gas
D. The price of PlayStation increases: Xbox
Answer:
Part1:
A. Birth rates in the United States decline: diapers
demand decreases, demand curve shifts to the leftB. The government provides subsidies to ethanol producers: ethanol
supply increases, supply curve shifts to the rightC. Starbucks coffee drinkers suffer due to a small coffee harvest: Starbucks coffee
supply decreases, supply curve shifts to the leftD. Consumer incomes decrease: public transportation
demand decreases, demand curve shifts to the leftPart2:
A. The price of beer increases: Solo cups
demand decreases, quantity demanded will lower following the demand curveB. Henry Ford develops assembly-line production: automobiles
supply increases, supply curve shifts to the rightC. Natural gas producers are making large economic losses: natural gas
supply decreases, supply curve shifts to the leftD. The price of PlayStation increases: Xbox
demand for Xbox decreases, quantity demanded will lower following the demand curve
All of the following are considered active job search methods EXCEPT _____.
plans to retain and reinvest all of its earnings for the next 30 years. beiginning in year 31, the firm will begin to pay $12 per share dividend. the dividend will increase at a 6% rate annually thereafter. given a required return of 15% what the stock should sell for today
Answer:
The stock should sell for = $2.01
Explanation:
The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.
The model is given as
P = D× g/(r-g)
P- stock value, g- growth rate , r-m required rate of return
PV of dividend in year 30 = 12/(0.15- 0.06)=133.3333333
PV of dividend in year in year 0 = 133.3333333 × 1.15^(-30)= 2.01
The stock should sell for = $2.01
Journalize the entries to record the following selected bond investment transactions for Starks Products: For a compound transaction, if an amount box does not require an entry, leave it blank. a. Purchased for cash $102,000 of Iceline, Inc. 7% bonds at 100 plus accrued interest of $1,190, paying interest semiannually. b. Received first semiannual interest payment. c. Sold $68,000 of the bonds at 102 plus accrued interest of $520.
Answer and Explanation:
The journal entries are shown below:
a) Investment in bonds $102,000
Interest receivable $1,190
To Cash $103,190
(Being the purchased of bonds is recorded for cash)
For recording this we debited the investment in bonds and interest receivable as it increased the assets and credited the cash as it reduced the assets
b) Cash Dr $3,570 ($102,000 × 7% ÷ 2)
To Interest receivable $1,190
To Interest Revenue $2,380
(Being first semiannual interest payment is recorded)
For recording this we debited the cash as it increased the assets and credited the interest receivable and interest revenue as it reduced the assets and increased the revenue
c) Cash $69,880 ($68,000 ×102% + $520)
To Investment in bonds $68,000
To Interest Revenue $520
To Gain in sale of investment $1,360
(Being the sale of the bond is recorded)
For recording this we debited the cash as it increased the assets and credited the investment in bonds and interest revenue & gains as it reduced the assets and increased the revenue
Lice's Aspirin Inc. produces and packages aspirin for sale to retail stores. Bob buys a bottle of Alice's aspirin at Dahl's Food Stores. Two days later Bob takes two aspirin and within minutes, becomes very ill and is rushed to the hospital, where it is found that a defect in the aspirin caused the reaction. Which of the following is correct?
A. Bob can sue both Alice's Aspirin Inc. and Dahl's because he suffered personal injury due to the defective product.
B. Bob cannot sue anyone because he assumed the risk of taking the aspirin.
C. Bob cannot sue anyone because he is not in privity with Dahl's or Alice's.
D. Bob can sue but will not be able to recover consequential damages for his medical expenses.
Answer:
The correct answer is the option A: Bob can sue both Alice's Aspirin Inc. and Dahl's because he suffered personal injury due to the defective product.
Explanation:
To begin with, the situation that later caused Bob to be injured could have been worse in the case that he may not have gone to the doctor and that is why that he did not just suffered and injury but he also may have had more serious problems or even a situation that could have changed his life forever so therefore that he is able to sue both the store and the company because of the situation that happen to him because of them. In advance, the court will later determinate how much compensation and how the case will go on, but initially he can sue both because of the unpleasent situation that they make him live.
January 1 of this year, a Company completed the following transactions (assume a 9% annual interest rate):
Bought a delivery truck and agreed to pay $60,400 at the end of three years. Rented an office building and was given the option of paying $10,400 at the end of each of the next three years or paying $28,400 immediately. Established a savings account by depositing a single amount that will increase to $90,800 at the end of seven years. Decided to deposit a single sum in the bank that will provide 9 equal annual year-end payments of $40,400 to a retired employee (payments starting December 31 of this year).
What is the cost of the truck that should be recorded at the time of purchase?
Which option for the office building results in the lowest present value?
Answer:
The cost of the truck that should be recorded at the time of purchase is $46,639
Paying installment is the best option
Explanation:
In order to Calculate the cost of the truck that should be recorded at the time of purchase we need find out present value of future amount of 60,400 with the following formula:
PV=FV/(1+i)^n
FV = Future value
i = interest rate
n = No of years
By applying the formula = 60,400/(1+.09)^3
PV= $46,639
Therefore, $46,639 should be recorded as a cost of truck.
Paying installment is better option than paying lump sum amount of $28,400 as present value of installment method ($26,322 as per below table) is less than immediate payment amount.
PV of installment method
Year installment method PV Factor PV
1 10,400 0.917 9,537
2 10,400 0.842 8,757
3 10,400 0.772 8,029
Total 26,322
g Productive efficiency refers to Multiple Choice the use of the least-cost method of production. the production of the product mix most wanted by society. the full employment of all available resources. production at some point inside of the production possibilities curve.
Answer: The full employment of all available resources.
Explanation:
When a company is said to be Productively Efficient, it means that they are employing all available resources and no resource is being wasted.
Therefore at this level, were they to produce more of a good, they would have to reduce the resources going to another good. At this point there is no wastage whatsoever and resources are being used efficiently.
Suppose a firm that produces pints of gourmet ice cream has monthly fixed costs of $12,000. The variable costs come to $1.50 per pint produced. (for up to 40,000 pints/month) and the firm sells each pint of ice cream for $3. Find the firm's profit function.
Answer:
P(x)=1.5x-12,000
Explanation:
The profit function equation is:
P(x) = R(x) - C(x)
P(X)= Profit
R(x)= Revenue= 3x
C(x)= cost= fixed costs+variable costs=12,000+1.50x
x= number of pints of ice cream
Then, you can replace the equation with the information given:
P(x)=3x-(12,000+1.50x)
P(x)= 3x-12,000-1.5x
P(x)=1.5x-12,000
According to this, the answer is that the firm's profit function is P(x)=1.5x-12,000.
Answer:
$48,000
Explanation:
The Profit function shows the relationship between the total costs and total revenue accrued in a business. It is given by the formula;
Product Function=Total revenue - Total costs.
The fixed costs in a business are those expenses that must be taken care of no matter the level of production. Variable costs however are dependent on the output of the company.
For the firm producing Gourmet ice-cream,
Total Revenue= $3*40000 pints/month = $120,000
Total costs=Fixed cost +Variable costs
= $12,000 + $40000*(1.5)
= $12,000 + $60,000
= $72000
Therefore,
Product Function= $120,000 - $72000
= $48000
