Answer:
Maximize the difference between Output and Input
Explanation:
The publisher can get a higher margin by maximizing the output i.e. the number of copies of books sold and by minimizing the input i.e. costs.
A book publisher should choose the list price that maximizes profit. This involves considering the relationship between the list price, advertising costs, and volume of sales. The key is to find the optimal price that generates the highest return when taking into account these factors.
Explanation:The publisher's criterion in this case should be to choose the list price that maximizes profit. This involves striking a balance between the list price, the advertising costs, and the number of copies sold. For instance, if a low list price will result in less advertising but a higher volume of sales, this could lead to a higher overall profit. Conversely, if a higher list price necessitates more advertising but could potentially lead to lower sales volumes, this could decrease overall profit. The publisher must determine the optimal list price that will generate the highest return when taking into consideration these variables. In essence, the publisher needs to conduct a thorough cost-benefit analysis.
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Think of three goods for which the demand is inelastic with respect to price. Do these goods ever go on sale? Does understanding the relationship between elasticity and total revenue help you understand why some goods go on sale and others don’t? Share your thoughts.
Answer:
1. Basic Food Ingredients (Salt) , 2. Medicines , 3. Addiction Goods (Alcohol)
Explanation:
Demand (buyers ability & willingness to buy at a price - is Elastic if it responds more to price change , is Inelastic if it responds less to price change.
Following goods have inelastic demand (which responds less to price change) because of either its 'necessity' in nature or consumer being accustomed to it.
Necessity Goods: Basic food ingredients (salt), Medicines and
Goods to which consumer is habituated/addicted (Alcohol).
Such goods Price & Total Revenue (price x quantity) are directly related [Price increase, Total Revenue increase & Price decrease, Total Revenue decrease] .
So : TR direct relationship P↓TR ↓ - makes sale i.e price reduction of these goods non beneficial by not increasing (rather decreasing) Total Revenue. Hence , such goods are rarely put on sale.
Goods with inelastic demand such as essential medications, fuel, and salt may go on sale but less frequently, as lowering prices does not significantly increase the quantity sold nor total revenue. Understanding elasticity and total revenue is key for retailers to set effective pricing strategies.
Goods for which the demand is inelastic with respect to price include essential items such as diabetes medication, gasoline, and salt. These items are not very responsive to price changes because they are necessary for day-to-day living or don't have close substitutes. While these goods might go on sale occasionally, the sales are often less dramatic or frequent than for goods with elastic demand. Understanding the relationship between elasticity and total revenue helps explain why some goods go on sale and others don't. Generally, for goods with elastic demand, sellers might lower prices to increase total revenue by selling a greater quantity. However, for goods with inelastic demand, lowering the price does not significantly increase quantity sold, and may decrease total revenue. Therefore, sellers of inelastic goods have less incentive to put these items on sale.
Studying price elasticities is crucial for making informed pricing decisions to maximize revenue. Price elasticities impact revenue by indicating how a change in price will affect the total spending by consumers. Short-run and long-run impacts of elasticity affect equilibrium by altering the quantity supplied and the quantity demanded in a market, therefore retailers need to understand these principles to set effective pricing strategies.
Considering the example of Buhrke Industries from chapter 1 of the text, which form of value chain does Buhrke Industries employ? a. Input-output b. Pre- & post- production services c. Hierarchical supply chain
Answer:
a. Input-output
Explanation:
Considering Buhrke receives materials from suppliers, and produces output (goods) from it, they utilize an input-output value chain. It means that focus is put on the actual creating of value using input operations. Since the source of their income is the selling of goods, the input-output model describes the steps that transform raw materials into final goods.
These selected condensed data are taken from a recent balance sheet of Bob Evans Farms (in millions of dollars).
Cash $ 29.3
Accounts receivable 20.5
Inventory 28.7
Other current assets
24.0
Total current assets $102.5
Total current liabilities $201.2
Compute working capital and the current ratio. (If answer is negative enter it with a negative sign preceding the number e.g. -15,000 or in parenthesis e.g. (15,000). Round Current Ratio to 2 decimal places, e.g. 0.78 : 1.)
Working capital $These selected condensed data are taken from a rec
Current ratio These selected condensed data are taken from a rec :1
Answer:
Working capital is ($98.7) in millions
Current ratio is 0.51:1
Explanation:
Working Capital is the difference between current assets and current liabilities. So, $102.5 (in milions) less $202.2 (in millions) equals ($98.7) in millions. This means, the company's short-term obligation exceeds its current asset for the period.
Current ratio also known as liquidity ratio. It measures the company's capacity to pay short-term obligation. To compute current ratio we simply divide current assets over current liabilities.
Current Assets / Current Liabilities
$102,500,000 / $201,200,000
0.509443 or 0.51 : 1
Final answer:
Working capital is calculated as current assets minus current liabilities, which in this case results in $(98.7) million, indicating a deficit. The current ratio comes to 0.51 : 1, after dividing current assets by current liabilities, reflecting the company's liquidity situation.
Explanation:
To calculate the working capital, we subtract the total current liabilities from the total current assets. In this scenario:
Working capital = Total current assets \'96 Total current liabilities
= $102.5 million \'96 $201.2 million
= \'96(98.7) million or $(98.7) million.
The negative sign indicates a deficit in working capital, which means that the current liabilities surpass the current assets.
Next, to calculate the current ratio, divide the total current assets by the total current liabilities. Here is the computation for the current ratio:
Current ratio = Total current assets / Total current liabilities
= $102.5 million / $201.2 million
= 0.51: 1.
This ratio is rounded to two decimal places, providing a quick insight into the company's liquidity from these balance sheet figures.
Brad proposed the purchase of a new Toshiba copier to his boss, Chin. Chin said that he has always used and liked Xerox copiers, but when he thinks about it later, he realizes he does not really feel strongly about the brand of copy machine used in the office. Chin should probably adopt a(n) ________ conflict-handling style when trying to resolve this matter with Brad.
Multiple Choice
avoiding
accommodating
compromising
forcing
collaborating
Which of the directives in "The Dialogue Decalogue" would be the most difficult for you to put into practice if you participated in a dialogue with a person from a religious tradition other than your own (or any religious tradition, if you are not religious yourself)?
Answer: I think the 6th commandment in the dialogue Decalogue would be the most difficult.
Explanation: It is difficult not to assume because it is human nature to do so. Even though assumption is the worst form of enquiry, humans tend to assume in countless situations which leads to misunderstandings and disagreements.
Answer:
The difficult one for me to put into practice if I participated in a dialogue with a person from a religious tradition other than my own would be the 6th commandment in the dialogue Decalogue Explanation: each partner should not only listen to the other partner with
openness and sympathy but also attempt to agree with the dialogue partner as far as is possible while still
maintaining integrity with his own tradition; where he absolutely can agree no further without violating his own
integrity, precisely there is the real point of disagreement—which most often turns out to be different from the
point of disagreement that was falsely assumed ahead of time.
How do you manage innovation if ideas can come from anywhere, including people who aren’t your direct employees—or aren’t even part of the company?
Answer and Explanation:
Development is a significant part for any association. It makes ready for organization's sustenance and ensures that the association is rivalry in a sound way in the market. Be that as it may, overseeing advancement can be a precarious circumstance. So as to oversee advancement that can emerge out of where anyplace, the association needs to comprehend the significance of the development and the wellsprings of development.
Associations need to make arrangements to support developments, open dialog on these issues and advance individuals who achieve the changes. So as to do that the organization need to instill the way of life of advancement. This requires changes in the manner association works, the objectives, the crucial vision of the organization. The estimation of the organization must be set up in a manner that advances development and prizes the individuals who are engaged with this procedure.
A man purchased a magazine at the airport for $ 2.79 . The tax on the purchase was $ 0.15 .What is the tax rate at the airport?
Answer:
Tax on the airport= 5.376%
Explanation:
The tax rate on the airport can be calculated from the price of the magazine on the airport and tax which is on the magazine when purchasing from the airport.
Tax rate at the airport=(Tax on the Purchase)/(Price of magazine at which it is purchased)
[tex]Tax\ rate\ at\ the\ airport=\frac{\$0.15}{\$2.79}[/tex]
[tex]Tax\ rate\ at\ the\ airport=0.05376[/tex]
In percentage:
Tax on the airport= 0.05376*100
Tax on the airport= 5.376%
The tax rate on the magazine purchased at the airport can be calculated by dividing the tax amount by the purchase price and multiplying by 100%. In this case the tax rate is approximately 5.38%.
Explanation:The problem is asking to find the tax rate. This can be calculated using the formula: Tax Rate = (Tax / Purchase Price) x 100%. In this case, the purchase price of the magazine was $2.79 and the tax was $0.15.
Therefore, substituting these values into the formula, we have: Tax Rate = ($0.15 / $2.79) x 100% = 5.38%. So, the tax rate at the airport is approximately 5.38%.
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If an investor uses the full amount of margin available, the equity in a margin account used for a stock purchase can be found as ________. A.market value of the stock - amount owed on the margin loanB. market value of the stock + amount owed on the margin loanC. market value of the stock margin loanD. margin loan x market value of the stock
Answer:A.market value of the stock - amount owed on the margin loan.
Explanation:
The concept above is explained by the concept of margin loan availability. This describes the amount in the margin account which is presently available for buying securities on the margin or for buying the amount in quantity that is available for withdrawal.
Goliath Corp. has beginning accounts receivable of $2,000. During the year, Goliath sold goods to customers on account for $10,000. During the year, Goliath also sold goods to customers for cash in the amount of $2,000. At the end of the year, the balance in Goliath's accounts receivable is $3,000. What is accrual basis sales for the year
Answer:
$12,000
Explanation:
According to the accrual accounting method, the reporting of the transactions should be performed on an accrual basis which means whether or not the payment is paid but it is reported in the account books.
The revenue should be recorded when it is earned or realized and the expenses are recorded when it is incurred
So, in the given scenario, the amount based on accrual basis sales would be
= Goliath sold goods to customers on account + Goliath also sold goods to customers for cash
= $10,000 + $2,000
= $12,000
Goliath Corp's accrual basis sales for the year are $11,000. This is calculated by adding the starting accounts receivable, the sales on account, the cash sales, and then subtracting the end accounts receivable.
The accrual basis includes transactions when they occur, regardless of when cash changes hands. In Goliath Corp's case, you need to consider both the cash sales and the sales on account, even if some invoices haven't been paid by the end of the year.
For the accrual basis sales of the year, you should add: the beginning accounts receivable ($2,000), plus the sales to customers on account ($10,000), plus the cash sales ($2,000), and then subtract the ending accounts receivable ($3,000). After calculation, Goliath Corp's accrual basis sales for the year amount to: $11,000.
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Before 1837, all states employed mandatory death penalty statutes that required anyone convicted of a designated capital crime to be sentenced to death.
a. True
b. False
Answer:
The statement is TRUE
Consider a small economy that is closed to trade, so its net exports are equal to zero. Suppose that the economy has the following consumption function, where C is consumption, Y is real GDP, I is investment, G is government purchases, and T stands for net taxes:
Consider a small economy that is closed to trade,
C = 40 + 0.5 * (y - t)
Suppose G = $115 billion, I = $50 billion, and T = $10 billion.
Given the consumption function and the fact that for a closed economy total expenditure can be calculated as (y = c + i + g) , the equilibrium output level is equal to _______billion.
Suppose the government purchases are increased by $100 billion. The new equilibrium level of output will be equal to _____
Based on the effect of the change in government purchases on equilibrium output, you can tell that this economy's spending multiplier is equal to ____
Answer:
(a) $400 billion
(b) $600 billion
(c) 2
Explanation:
Given that,
G = $115 billion,
I = $50 billion, and
T = $10 billion
(1) In equilibrium,
Y = C + I + G
Y = 40 + 0.5(Y - 10) + 50 + 115
Y = 205 + 0.5Y - 5
0.5Y = 200
Y = $400 billion
(2) When G increases by 100,
new level of G = 115 + 100
= 215
Therefore,
Y = 40 + 0.5(Y - 10) + 50 + 215
Y = 305 + 0.5Y - 5
0.5Y = 300
Y = $600 billion
(3) Spending multiplier = Increase in Y ÷ Increase in G
= $(600 - 400) Billion ÷ $100 billion
= 200 ÷ 100
= 2
A consumption is depends upon the demand of particular product. If the company wants to earn more profit, they need to meet the consumption.
What is the term equilibrium about?
The term equilibrium means where the demand and supply of particular product meet with each other.
Given Information:-
G = $115 billion,
I = $50 billion, and
T = $10 billion
(1) In equilibrium,
Y = C + I + G
Y = 40 + 0.5(Y - 10) + 50 + 115
Y = 205 + 0.5Y - 5
0.5Y = 200
Y = $400 billion
(2) When G increases by 100,
new level of G = 115 + 100= 215
Therefore,
Y = 40 + 0.5(Y - 10) + 50 + 215
Y = 305 + 0.5Y - 5
0.5Y = 300
Y = $600 billion
(3) Spending multiplier = Increase in Y ÷ Increase in G
= $(600 - 400) Billion ÷ $100 billion
= 200 ÷ 100= 2
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Milden Company is a merchandiser that plans to sell 12,000 units during the next quarter at a selling price of $100 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost Formula Cost of good sold $35 per unit sold Advertising expense $210,000 per quarter Sales commissions 6% of sales Shipping expense $28,000 per quarter + $9.10 per unit sold Administrative salaries $145,000 per quarter Insurance expense $9,000 per quarter Depreciation expense $76,000 per quarter
Answer:
Part 1 – Milden Company – Contribution format income Statement
Sales (12000 × 100) = 1,200,000
Less: Variable Cost
COGS (12000 × 35) = 420,000
Sales Commissions (1,200,000 × 6%) = 72,000
Shipping Exp. (12000 × 9.10) = 109,200
Total Variable Cost = 601,200
Contribution Margin = Sales – Variable Cost
Contribution Margin = 1,200,000 – 601,200
Contribution Margin = 598,800
Less: Fixed Cost
Adm. Salaries exp. = 145,000
Advertising exp. = 210,000
Shipping exp. = 28,000
Depreciation exp. = 76,000
Insurance exp. = 9000
Total Fixed cost = 468,000
Net Income = Contribution Margin - Total Fixed cost
Net Income = 598,800 – 468,000
Net Income = 130,800
Part 2 – Milden Company – Traditional format income Statement
Sales (12000 × 100) = 1,200,000
Less: COGS (12000 × 35) = 420,000
Gross Profit = 780,000
Less Operating expense
Sales Commission (1,200,000 × 6%) = 72,000
Shipping exp. (12000 × 9.10) + 28,000 = 137,200
Adm. Salaries exp. = 145,000
Advertising exp. = 210,000
Depreciation exp. = 76,000
Insurance exp. = 9000
Total Operating Expense = 649,200
Net Income = Gross Profit - Total Operating expense
Net Income = 780,000 – 649,200
Net Income = 130,800
To calculate the total revenue, multiply the quantity of units sold by the selling price. The total cost can be found by summing up all the individual cost estimates provided. The total revenue is $1,200,000 and the total cost is $1,275,000.
Explanation:To calculate the total revenue, we multiply the quantity of units sold by the selling price. So, the total revenue for the next quarter would be 12,000 units multiplied by $100, which equals $1,200,000.
The total cost of goods sold can be found by multiplying the cost per unit sold by the number of units sold. In this case, it would be 12,000 units multiplied by $35, resulting in a total cost of goods sold of $420,000.
To calculate the total cost, we sum up all the individual cost estimates provided. So, the total cost would be $210,000 (advertising expense) + 6% of sales (sales commissions) + $28,000 (shipping expense) + $145,000 (administrative salaries) + $9,000 (insurance expense) + $76,000 (depreciation expense), which equals $1,275,000.
On January 6, Windsor Co. sells merchandise on account to Harley Inc. for $9,700, terms 2/10, n/30. On January 16, Harley pays the amount due. Prepare the entries on Windsor Co.’s books to record the sale and related collection. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer:
Explanation:
Jan. 6
Dr Accounts receivable $9,700
Cr Sales $9,700
Jan. 16
Cash $10,506
Sales discounts($9,700 * 2%) $194
Accounts receivable $10,700
The journal entries are the initial recording of the business transactions in the books of accounts. The entries are prepared in chronological order .i.e. the order of their occurrence. This helps the accountant to prepare the general ledger accounts of each account head.
The journal entries for the sale of merchandise and its amount payment is attached in the image below:
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All else constant, a coupon bond that is selling at a premium, must have:
a. a yield to maturity that is less than the coupon rate.
b. a market price that is less than par value.
c. a coupon rate that is less than the yield to maturity.
d. a coupon rate that is equal to the yield to maturity.
e. semiannual interest payments.
Answer:
a. A yield to maturity that is less than the coupon rate.
Explanation:
If a coupon bond is selling at premium, this implies its current market price is higher than its par (face) value. But the coupon rate remains the same. So, since the price of bond has risen, the current market interest rate (yield to maturity) has to be less than the coupon rate. This is because the interest payment should be near about same or identical in case, when the bond is selling at premium and also in the case when the bond was selling at its par rate or value.
Hence, to arrive at around about the same interest payment, all else constant, a coupon bond that is selling at a premium, must have a yield to maturity that is less than the coupon rate.
Preparing a trial balanceSmithson Floor Coverings reported the following summarized data at December 31, 2018. Accounts appear in no particularorder, and all have normal balances.Service Revenue 8 26.000 Salaries Payable $ 25,000Equipment 36,000 Salaries Expense 1,600Rent Expense 17,000 Cash » 7.000Common Stock 24.000 Accounts Receivable 3.600Accounts Payable 2.200 Interest Payable 6,000Dividends 16,100 Utillties Expense 1.900Prepare the trial balance of Smithson Floor Coverings at December 31, 2018.
Answer:
Smithson Floor Coverings
Trial Balance
As at 31st December 31, 2018
Account Dr ($) Cr($)
Revenue 26,000
Salaries Payable 25,000
Equipment 36,000
Salaries Expense 1,600
Rent Expense 17,000
Cash 7,000
Common Stock 24,000
Accounts Receivable 3,600
Accounts Payable 2,200
Interest Payable 6,000
Dividend 16,100
Utilities Expense 1,900
83,200 83,200
Explanation:
In accounting, liability, Income and equity items have credit balances while assets and expenses have debit balances.
With that background, Start by picking balance relating to income and post them to the credit side of the trial balance, like revenue.
After that, pick balance relating to liability post them to the credit side of the trial balance, like trade payable.
Then pick balance relating to equity item, post them to the credit side of the trial balance, like common stock.
After this, pick items relating to asset and post them to the debit side of the trial balance, like trade receivables. Then, pick items relating to expenses and then post them to the debit side of the trial balance.
At the end, all income, liability and equity item balances are posted to the credit side of the trial balance while assets and expenses item balances are posted to the debit side. And two sides balance.
Remember the purpose of a trial balance is to check the arithmetical accuracy of ledger balances and that was exactly what was done above.
Final answer:
A trial balance for Smithson Floor Coverings on December 31, 2018, lists out all asset accounts with debit balances and liability or equity accounts with credit balances, ensuring that the sum of debits equals the sum of credits.
Explanation:
To prepare the trial balance of Smithson Floor Coverings on December 31, 2018, you must list all the accounts and their balances in the appropriate debit or credit column. Since all accounts have normal balances, Service Revenue, Common Stock, Accounts Payable, Salaries Payable, and Interest Payable will have credit balances, while the others will have debit balances. Here is the trial balance:
Equipment - $36,000 (Debit)
Cash - $7,000 (Debit)
Accounts Receivable - $3,600 (Debit)
Salaries Expense - $1,600 (Debit)
Rent Expense - $17,000 (Debit)
Utilities Expense - $1,900 (Debit)
Dividends - $16,100 (Debit)
Service Revenue - $26,000 (Credit)
Common Stock - $24,000 (Credit)
Accounts Payable - $2,200 (Credit)
Salaries Payable - $25,000 (Credit)
Interest Payable - $6,000 (Credit)
The total of the debit and credit columns should be equal to ensure the accuracy of the entries, representing the balance sheet's equation where Assets = Liabilities + Equity.
Mike interviewed Dan for a sales clerk position, and Mike really liked Dan. They got along great in the interview, and they are both fans of the Green Bay Packers football team. Mike wanted to hire Dan on the spot, but per company policy, he checked Dan’s references. One of Dan’s previous employers said he was constantly late to work and was sometimes rude to customers. However, another previous manager said Dan only worked for her for six weeks but was satisfactory during that time. Mike decided that the second manager’s opinion was worth more than the first one’s and hired Dan. a. Overconfidence b. Justifying past decisions c. Seeing what you want to see d. Perpetuating the status quo
Answer:
c. Seeing what you want to see
Explanation:
Yard Designs (YD) experienced the following events in 2018, its first year of operation: 1. On October 1, 2018, YD collected $54, 000 for consulting services it agreed to provide during the next 12 months. 2. Adjusted the accounts to reflect the amount of consulting service revenue recognized in 2018. Based on this information alone: a. Record the events under an accounting equation. b. Prepare an income statement, balance sheet, and statement of cash flows for the 2018 accounting period. c. Ignoring all other future events, what is the amount of service revenue that would be recognized in 2019? Complete this question by entering your answers in the tabs below. Record the events under an accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.)
Answer:
Please see the solution below:
Explanation:
1. Accounting Equation is an equation where assets are always equal to Liabilities and Owners' Equity.
We know from the question that Yard Design (YD) has collected $54,000 for consulting services to be provided in next 12 months, and accounting period starts on 1st of January and ends on 31st of December. So when solving accounting equation for 2018, we know that consulting service fee was collected on 1st of October. Hence there will be two types of Incomes generated from this event.
2. First we have Income which is realized and should be accounted in Income Statement as our revenue, which will be in this case for 3 months from 1st of October 2018 to 31st of December 2018.
Second we have unrealized income or unearned income and should be accounted in Balance Sheet. As we know that Accounting Equation reflects the mirror image of Balance Sheet, so for the remaining 9 months unearned income will be reported in Balance Sheet and should be computed using accounting equation as follows;
a. Accounting Equation
Assets = Cash = $54,000
Liabilities = Unearned Revenue = ?
Owners' Equity = Retained Earnings = ?
Unearned Revenue = Cash x Number of Incomplete Months / 12 Months
Unearned Revenue = $54,000 x 9/12
Unearned Revenue = $40,500
Retained Earnings = Cash - Unearned Revenue
Retained Earnings = $54,000 - $40,500
Retained Earnings = $13,500
Assets = Liabilities + Owners' Equity
or
Cash = Unearned Revenue + Retained Earnings
$54,000 = $40,500 + $13,500
b.
Yard Design
Income Statement
For the Year ended December 31, 2018
Revenue $13,500
Less: Expenses $0
Net Income $13,500
Yard Design
Balance Sheet
For the Year ended December 31, 2018
Assets
Cash $54,000
Total Assets $54,000
Liabilities
Unearned Revenue $40,500
Total Liabilities $40,500
Owners' Equity
Retained Earnings $13,500
Total Owners' Equity $13,500
Total Liabilities and Owners' Equity $54,000
Yard Design
Statement of Cash Flow
For the Year ended December 31, 2018
Net Income $13,500
Add: Cash Flows from operating activities
Increase in Accounts Payable $40,500
Net Cash Flow from Operating Activities $54,000
Cash Flows from Investing Activities $0
Cash Flows from Financing Activities $0
Add: Opening Cash Balance $0
Ending Cash Balance $54,000
c. Amount of Service Revenue recognized in 2019.
Unearned Revenue = Cash x Number of Incomplete Months / 12 Months
Unearned Revenue = $54,000 x 9/12
Unearned Revenue = $40,500
Final answer:
Yard Designs records advance payment as unearned revenue, which is recognized over time as services are provided. The initial unearned revenue of $54,000 results in a recognized revenue of $13,500 for the 2018 period, with a remaining balance of $40,500 as unearned revenue to be recognized in 2019.
Explanation:
When a company like Yard Designs (YD) receives an advance payment for services to be provided in the future, it records the transaction as unearned revenue, which is a liability. As services are performed over time, this liability is converted into earned revenue, which is reported on the income statement.
Accounting Equation
Assets = Liabilities + Equity
1. Upon receiving the $54,000:
Cash (Asset) increases by $54,000
Unearned Revenue (Liability) increases by $54,000
2. At the end of 2018 (assuming a 3-month period of revenue recognition out of 12 months):
Unearned Revenue decreases by $13,500 ($54,000 / 4, because 3 of 12 months have passed)
Service Revenue (Equity) increases by $13,500
Income Statement for 2018
Revenues: $13,500 (Recognized portion of the advance payment)
Expenses: $0 (No expenses have been reported)
Net Income: $13,500
Balance Sheet as of December 31, 2018
Assets:
Cash: $54,000
Total Assets: $54,000
Liabilities:
Unearned Revenue: $40,500 (Remaining liability)
Total Liabilities: $40,500
Equity:
Retained Earnings (Net Income): $13,500
Total Equity: $13,500
Total Liabilities and Equity: $54,000
Statement of Cash Flows for 2018
Operating Activities:
Net Income: $13,500
Changes in Operating Liabilities (Unearned Revenue): +$40,500
Net Cash Provided by Operating Activities: $54,000
Investing Activities: $0
Financing Activities: $0
Net Increase in Cash: $54,000
Cash at Beginning of Period: $0
Cash at End of Period: $54,000
Service Revenue in 2019
The amount of service revenue that will be recognized in 2019 is the remaining balance of the unearned revenue at the end of 2018, which is $40,500.
he most important function of packaging is a. offering convenience to customers. b. attracting the attention of the customer. c. communicating information to the customer. d. covering the product. e. protecting the product and maintaining its functionality.
The opportunity cost of an action is always equal to: the things you could have done instead of the action you chose to undertake. the money you give up to undertake the action. the time you give up to undertake the action. the next-best alternative for the resources used to undertake the action.
Answer:
the things you could have done instead of the action you chose to undertake
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
I hope my answer helps you.
If Aggregate Demand (AD) is pushed into the steep portion of the SRAS Curve, the economy will experience:a. Inflationb. Unemploymentc. Inflation AND unemploymentd. Neither inflation not unemployment
Answer:
a. Inflation
Explanation:
A shift of AD to the right will move output closer to potential GDP and thus reduce unemployment, but this shift will also lead to a higher price level and upward pressure on inflation
An organization decides to improve its raw material handling process by buying a material handling robot. This is an example of using
Answer:
B. Automation
Explanation:
Option A is incorrect as a human resource cannot be a material handling robot.
Option C is wrong as statistical quality control cannot do the same task as a material handling robot can. Statistical quality control can ensure quality by minimizing risk.
Options D and E are incorrect, respectively, as flexible manufacturing cannot improve the raw materials, and fixed layouts cannot be the element of the raw material process.
Option B is correct as a material handling robot is a machine. Therefore, automation is necessary to improve the raw materials handling process.
Final answer:
The organization's decision to buy a material-handling robot exemplifies an investment in automation to increase efficiency and reduce human error in the production process.
Explanation:
An organization deciding to improve its raw material handling process by buying a material handling robot is an example of an investment in automation and technology. This step is taken to enhance operational efficiency, reduce labor costs, and minimize human error. Automation in the production process can lead to significant improvements in productivity and can be a part of a broader strategy to implement lean manufacturing principles.
Federal subsidies that are only given to dairy farmers who own more than one hundred cows may raise concerns about the ______ of the policy.
Answer:
The correct word for the blank space is: equity.
Explanation:
People expect the government to implement policies that will boost the overall economy and that will provide equal opportunities. Though, sometimes certain criteria must be met so those policies can apply. This causes people who are not eligible to access the policies' benefits to believing the regulation itself does not have an equity principle.
Which of the two project below would you pursue, if you based the decision on ROI (Discount rate: 10%)? Project 1 had a cash flow as follows: Year 0: -5K, Year 1: 3K, Year 2: 2K, Year 3: 1K Project 2 had a cash flow as follows: Year 0: -7K, Year 1: 5K, Year 2: 3K, Year 3: 2K
Answer:
Project 2 should be accepted as it's net present value (NPV) is higher
Explanation:
Project 1
Year Cash Flows Discounting factor @10% Present Value(in $)
0 (5000) 1 (5000)
1 3000 0.909 2727
2 2000 0.826 1652
3 1000 0.751 751
NPV $130
Year Cash Flows Discounting Factor @10% Present value (in $)
0 (7000) 1 (7000)
1 5000 0.909 4545
2 3000 0.826 2478
3 2000 0.751 1502
NPV $1525
Note: Cash flows in brackets denote cash outflows or negative cash flows.
The question is about comparing the ROI of two projects. After calculating the discounted cash flow of each project, we find that Project 2 has a higher present value, thus it is the better project to pursue based on ROI.
Explanation:The subject is about return on investment (ROI). To calculate ROI, we must compute the present value of expected cash flows and compare them for both projects. The present value calculation discounts future cash flows against a chosen rate, in this case, a discount rate of 10%.
For Project 1: the present value = -5K + 3K/(1+0.10) + 2K/(1+0.10)^2 + 1K/(1+0.10)^3 = $0.12K.
For Project 2: the present value = -7K + 5K/(1+0.10) + 3K/(1+0.10)^2 + 2K/(1+0.10)^3 = $0.66K.
Since Project 2 has a higher present value, it is the one you'd want to pursue based on ROI.
Learn more about ROI calculation here:https://brainly.com/question/28063973
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At the end of last year, the company's assets totaled $879,000 and its liabilities totaled $749,500. During the current year, the company's total assets increased by $59,900 and its total liabilities increased by $24,950.
At the end of the current year, stockholders' equity was $______.
Answer:
$ 164,450
Explanation:
Opening assets = $879,000
Opening liabilities = $ 749,500
Increase in Assets = $59,900
Increase in Liabilities = $24,950
Closing assets = Opening Assets + Increase in Assets
= $879,000 + $59,900
= $ 938,900
Closing Liabilities = Opening Liabilities + Increase in Liabilities
= $749,500 + $24,950
= $ 774,450
At the end of the current year,
Stockholder's Equity = Total Assets- Total Liabilities
= $ 938,900 - $ 774,450
= $ 164,450
Explain the kind of economic goods that are hot dogs and hot dog buns are with respect to each other, and then explain what is likely to happen to the demand for hot dogs when the price for hot dog buns decreases.
Answer:
Compliments
The demand for hot dogs would increase
Explanation:
Compliment goods are goods that are demanded together. Hot dog and hot dog bins are consumed together so they are demanded together. If the demand for hot dog increases, the demand for hot dog buns also increases.
If the price of hot dog buns falls, the demand for hot dog increases.
I hope my answer helps you
Which of the following explains why the aggregate demand curve is downward sloping?a. The interest rate effectb. The real balance effectc. The open economy effectd. All of these
Answer:
The interest rate effect explains why the aggregate demand curve is downward sloping.
Explanation:
The interest rate effect proposed by Keynes suggests the reasons for why is the aggregate demand curve downward sloping. It states that, when the interest rates are low, people choose to invest owing to the decreased costs of investment. This investment stimulates a drop in the levels of price. The dropped prices thus increase the aggregate demand for the commodities of which the price has dropped.A broker answered a call. A prospective buyer wants to see the home he drove by over the weekend. Feeling uncomfortable; for safety reasons the broker should:
Answer:
The correct answer is: insist they meet at the office before going out and showing the property.
Explanation:
In case Real Estate brokers are unsure to meet a prospective buyer of one of the properties they are selling, they could offer them to meet in the office where the broker's work to find out how serious this caller could be. Brokers could provide information on other similar properties they are offering as well during that appointment so the prospective buyer will not feel uncomfortable with the fact of going to the office first instead of meeting at the property of interest directly.
Which of the following correctly summarizes an employer’s right to monitor telephone conversations?A.An employer has right to monitor telephone conversations, but only on equipment that is not provided by a communications service provider.B.An employer has right to monitor telephone conversations, but only on equipment that is not provided by a communications service provider.C.Telephone conversation monitoring in the ordinary course of business is only allowed witha court order.D.An employer has right to monitor telephone conversations in the ordinary course of business without a court order
Answer:
The correct answer is letter "D": An employer has right to monitor telephone conversations in the ordinary course of business without a court order.
Explanation:
Most companies handle their customer service operations through phone calls in contact centers. There, a typically large number of people work assisting the company's clients with their needs in regards to the company's product. To ensure those employees are providing clients with the right help, employers tend to monitor the calls for quality assurance purposes. Since this monitor or in some cases recording takes place under business conditions, there is no need for a court order.
In which phase of the job search cycle will you write a thank-you letter to the company following your interview?
a. Create Your Resume
b. Apply for Jobs
c. Shine at Interviews
d. Connect, Accept, and Succeed
Answer:
c. Shine at Interviews
Explanation:
We write a thank-you letter to the company after shine at Interviews in order to follow up
Listed here are product costs for the production of soccer balls. Identify each cost (a) as either fixed or variable and (b) as either direct or indirect.
1. Lace to hold leather together
2. Wages of assembly workers
3. Coolants for machinery
4. Annual flat fee paid for factory security
5. Leather covers for soccer balls
6. Machinery depreciation (straight-line)
7. Taxes on factory
Answer:
a) Fixed or variable and (b) as either direct or indirect.
Explanation:
1. Lace to hold leather together: indirect cost/ variable
2. Wages of assembly workers : direct cost/ variable
3. Coolants for machinery : indirect cost/ fixed
4. Annual flat fee paid for factory security : indirect cost/ fixed
5. Leather covers for soccer balls: direct cost/ variable
6. Machinery depreciation (straight-line): indirect cost/ fixed
7. Taxes on factory: indirect cost/ fixed
The product costs for the production of soccer balls can be categorized as fixed or variable, as well as direct or indirect costs. The lace used to hold the leather together, wages of assembly workers, and leather covers for soccer balls are examples of variable and direct costs. Coolants for machinery, annual flat fee paid for factory security, machinery depreciation, and taxes on the factory are examples of fixed and indirect costs.
Explanation:1. Lace to hold leather together:
(a) Variable cost - It varies depending on the number of soccer balls produced.
(b) Direct cost - It can be directly traced to the production of soccer balls as it is specifically used to hold the leather together.
2. Wages of assembly workers:
(a) Variable cost - It changes based on the number of hours worked or the number of workers hired.
(b) Direct cost - It can be directly attributed to the assembly of soccer balls as it is paid to the workers involved in the production process.
3. Coolants for machinery:
(a) Variable cost - It is dependent on the usage and maintenance of the machinery.
(b) Indirect cost - It is not directly tied to the production of soccer balls but is necessary to keep the machinery running smoothly.
4. Annual flat fee paid for factory security:
(a) Fixed cost - It remains constant regardless of the level of production.
(b) Indirect cost - It is not directly associated with the production process but is necessary for maintaining a secure environment in the factory.
5. Leather covers for soccer balls:
(a) Variable cost - It varies with the number of soccer balls produced.
(b) Direct cost - It can be directly allocated to the production of soccer balls as it is used to make the covers.
6. Machinery depreciation (straight-line):
(a) Fixed cost - It remains constant over time.
(b) Indirect cost - It is not directly linked to the production of soccer balls but represents the ongoing wear and tear of the machinery.
7. Taxes on factory:
(a) Fixed cost - It does not change regardless of the level of production.
(b) Indirect cost - It is not directly tied to the production process but represents the taxes paid for operating the factory.