Answer:
1) Consumer surplus of $4
2) producer surplus of $2
Explanation:
1) The consumer surplus is the difference between the highest price a consumer is willing to pay and the actual market price of the good or service.
Consumer surplus = Maximum price willing to pay - actual price
Consumer surplus = $9 - $5
Consumer surplus = $4
2) The producer surplus is the difference between the market price and the lowest price a producer would be willing to accept.
Producer surplus = Total revenue - total cost.
Total revenue is the revenue received from selling.
Producer surplus = $5 - $3
Producer surplus = $2
Therefore, the results of the transaction between Jonathan and Jennifer are a consumer surplus of $4 and a producer surplus of $2.
Sekelow Enterprises is a debt collection agency. It uses postcards to contact consumer debtors it is attempting to collect from for its clients. The name "Sekelow Enterprises" and the company address appear on the postcards used along with: "VERY IMPORTANT: PLEASE CONTACT US ABOUT YOUR DILLARD’S DEBT."
Is it legal?
Answer:
The correct answer is: No, it is not legal.
Explanation:
The Fair Debt Collection Practices Act (FDCPA) is a federal law that prohibits debt collectors from using abusive, unreasonable, or misleading money-recovery methods. That is meant to protect debtors from harassment or intimidation.
Collectors cannot present themselves as law enforcement or government officials, they cannot call people at work or multiple times at home or during out hours, they cannot pass off papers as legal documents when they are not, they cannot arrest you, or lie in any way.
Thus, Sekelow has violated the FDCPA by sending debtors postcards requesting contact from their end.
(Related to Checkpoint 20.1) (Hedging with forward contracts) The Specialty Chemical Company operates a crude oil refinery located in New Iberia, Louisiana. The company refines crude oil and sells the by-products to companies that make plastic bottles and jugs. The firm is currently planning for its refining needs for one year hence. Specifically, the firm's analysts estimate that Specialty will need to purchase 1 million barrels of crude oil at the end of the current year to provide the feed stock for its refining needs for the coming year. The 1 million barrels of crude will be converted into by-products at an average cost of $40 per barrel that Specialty expects to sell for $170 million, or $170 per barrel of crude used. The current spot price of oil is $125 per barrel and Specialty has been offered a forward contract by its investment banker to purchase the needed oil for a delivery price in one year of $130 per barrel. a. Ignoring taxes, what will Specialty's profits be if oil prices in one year are as low as $110 or as high as $150, assuming that the firm does not enter into the forward contract? b. If the firm were to enter into the forward contract, demonstrate how this would effectively lock in the firm's cost of fuel today, thus hedging the risk of fluctuating crude oil prices on the firm's profits for the next year.
Answer:
a) $110 per barrel equals 20,000,000 gains
while %150 per barril equals 20,000,000 loss
b) by entering the fordward contract the firm will purchase the barrel at the market value of the moment but, the contract will give the difference to the firm when it is above that level thus, there is no risk of a higher cost)
If the price is below 130 dollars then, the firm will pay the difference to the other party. In both cases, the total cost for the millon barrels is $130,000,000 therefore, there is no risk on the fluctuation of the barrel of crude oil.
Explanation:
a) revenues - total cost = income
where cost can be explained as conversion csot and material cost.
170 million revenues - 40 conversion cost - 110 materials = 20 million gain
170 million revenues - 40 conversion cost - 150 materials = -20 million loss
Answer:
Specialty Chemical company
low spot rates($110) high Spot rates (150)
selling price $170 million $170 million
cost of sales( 1 million) $110 million $150 million
profits $60 million $20 million
b. The forward exchange contract versus the current spot rate is not a wise decision and has a loss of $ 5 million [($125 - $13) * 1 million] if the oil was to be bought using the current spot rate, but the Hedge is for next year and if spot rates increases then the Hedge will be an asset. if the spot rate is lower than the hedge then it is an liability. Demonstration needs actual spot rate for the date of oil purchase.
Explanation:
The Chief Projects Officer responsibilities include ensuring that the steering team does all of the following EXCEPT: a. ensures enough resources (people, money, and other resources) are available to perform the projects b. captures lessons learned from completed projects c. monitors and controls the implementation of projects d. selects appropriate project sponsors and teams
Answer:
The correct answer is letter "D": selects appropriate project sponsors and teams.
Explanation:
Chief Projects Officers (CPO) are managers in charge of implementing a new plan of action within companies. They are in charge of verifying what steps are going to be taken in the process of implementing a project and if the resources allocated are necessary and will be enough to avoid delays. They also monitor employee performance and evaluate past plans to find out why they were successful or why they failed.
Selecting teams is a duty the Human Resources (HR) is in charge of, while the Marketing department chooses appropriate sponsors.
Final answer:
The Chief Projects Officer is generally responsible for ensuring resources are available, capturing lessons learned, and monitoring project implementation, but not typically for selecting project sponsors and teams.
Explanation:
The responsibilities of a Chief Projects Officer (CPO) vary, but typically include tasks such as ensuring resources are available, capturing lessons learned from projects, monitoring and controlling project implementation, and selecting appropriate project sponsors and teams. However, the responsibility of selecting the appropriate project sponsors and teams, while crucial to a project's success, is generally not a specific function of the CPO, as it can often fall within the domain of human resource management or higher-level executive decision-making. The CPO's role mainly revolves around strategic oversight and ensuring the necessary conditions for project success are met.
The subject question asks which of the listed responsibilities is not typically within the CPO's purview. The correct answer would be (d) selects appropriate project sponsors and teams, as this task is more commonly associated with human resource departments or other managerial roles within the organization.
Caroline lives in City A and earns $50,000 per year. The cost of living index in City A is .8. She is considering a move to City B which has a cost of living index of .9. How large a salary will she require in City B to maintain her current standard of living?
Answer:
$56,250
Explanation:
(0.9 × $50,000) / 0.8 = $56,250
The cost of living is higher in city B compared to city A, thus, the amount of income needed to sustain the same living standard ought to be higher.
I hope my answer helps you
Wealth creating transactions are more likely to occur a. With private property rights b. With contract enforcement c. Both a and b d. None of the above
Answer: C
Explanation:
Wealth is the gradual gathering of profits, assets or income over a period of time. It is the gradual increase in ones assets over a sustained period.
Wealth creating transactions can be found both in contract enforcement and private property rights. The prosperity and economic development of a country can be attributed to the respect accorded to its citizens property rights.
Property rights gives room for entrepreneurship which can eventually lead to wealth accumulation. Contract enforcement also generate wealth for individuals.
Final answer:
Wealth creating transactions are more likely to occur with both private property rights and contract enforcement.
Explanation:
Wealth creating transactions are more likely to occur with both private property rights and contract enforcement.
Property rights allow individuals and firms to own property and use it as they see fit, including the right to trade or sell that property. Contractual rights, which are based on property rights, allow individuals to enter into agreements with others regarding the use of their property.
Both private property rights and contract enforcement create a legal environment that gives individuals the ability to use their property to their fullest and highest use. Without contract enforcement, people would be less likely to enter into contracts for current or future services due to the risk of non-payment, making it difficult to transact business and slow economic growth.
After initially self-publishing his debut novel, The Martian, author Andy Weir continued to revise and improve later versions of the book based on readers' input, comments, and suggestions found on social media. This represents an example of an organization using social media to achieve which goal
Answer:
The correct answer is letter "A": Guide product development with customer feedback.
Explanation:
Companies make market researches before starting the manufacturing of a product. However, even if a study has been conducted to have a clear idea of what consumers want, the initial product offered may not meet customers' needs for different reasons.
In such a case, companies should take advantage of the feedback clients can provide about the product so those suggestions can be considered into the production process which will result in an output that matches better consumers' expectations.
Emily, the product development manager of JuzTel, seeks suggestions from her team members for improvising on the company's existing range of cell phones. The team members pour in their suggestions and Emily takes the final call on the inputs received by them. In this scenario, Emily is portrayed as a(n) _____
a. democratic leader
b. autocratic leader
c. consultative leader
d. consensus leader
The team members pour in their suggestions and Emily takes the final call on the inputs received by them. In this scenario, Emily is portrayed as a consensus leader
Explanation:
Emily, the product development manager of JuzTel, seeks suggestions from her team members for improvising on the company's existing range of cell phones. The team members pour in their suggestions and Emily takes the final call on the inputs received by them. In this scenario, Emily is portrayed as a consensus leader.In consensus leadership, the decision is based on group.consensus is a generally accepted bill by the Democrats and Republicans.It finds proposal which all the team can accept it and support it, with no member opposing it.Define your goals to the employees efficiently.Scott Company had sales of $12,050,000 and related cost of goods sold of $7,100,000 for the year ending December 31, 20Y8. Scott provides customers a refund for any returned or damaged merchandise. Scott Company estimates that customers will request refunds for 0.6% of sales and estimates that merchandise costing $53,000 will be returned in 20Y9. Journalize the adjusting entries on December 31, 20Y8, to record the expected customer returns. If an amount box does not require an entry, leave it blank.
Answer:
See explanation section.
Explanation:
December 31, 20Y8 Sales Debit $72,300
Customer Refunds Payable Credit $72,300
Note: Calculation: $12,050,000 × 0.6% = $72,300
(As the customers requested refunds for 0.6% of sales, we have to deduct it from total sales to give refund.)
December 31, 20Y8 Estimated Returns Inventory Debit $53,000
Cost of goods sold Credit $53,000
Note: As the returned products had the cost of sales, we have to give cost of goods sold journal assuming the company used perpetual inventory system.
Jason Allen just received a cash gift from his grandfather. He plans to invest in a five-year bond issued by Blossom Corp. that pays an annual coupon rate of 5.0 percent. If the current market rate is 8.50 percent, what is the maximum amount Jason should be willing to pay for this bond?
Answer:
$862
Explanation:
We assume the face value of the bond to be $1000
Coupon rate is 5% paid annually
Coupon payment = 5% x $1,000 = $50
Current market rate or Yield to Maturity (YTM) = 8.50%
We need to calculate the current market price of this bond.
Current price = [tex]\frac{FaceValue}{(1 + ytm)^{N} }[/tex] + [ Coupon payment x [tex]\frac{1 - \frac{1}{(1 + r)^{N} } }{r}[/tex] ]
Where,
Face Value = $1000
Coupon Payment = $50
N = 5
r = 0.085 or 8.50 %
After plugging in the values in the above equation We get the current price as $862
$862 is the maximum amount Jason should be willing to pay for this bond
1. Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle's book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle's January 1, 2020 retained earnings balance is $11 million, and it reports net income of $1.8 million for 2020. Safestyle declares no dividends and has no other comprehensive income. Goodwill from the acquisition was impaired by $1 million in 2019 and $500,000 in 2020. Potash uses the complete equity method to report its investment in Safestyle on its own books. On the December 31, 2020 consolidation working paper, eliminating entry (R) credits the Investment in Safestyle account by: A. $39,000,000 B. $38,500,000 C. $40,000,000 D. $39,500,000
The eliminating entry (R) would credit the Investment in Safestyle account by $38,500,000 on the December 31, 2020 consolidation working paper. This is the outcome of the initial investment of $50 million less the accumulated retained earnings and impairments.
Explanation:The Investment in Safestyle account on the December 31, 2020 consolidation working paper, eliminating entry (R) would be credited by $38,500,000. This is calculated by deducting the change in retained earnings and the impairment losses from the initial investment of $50 million. Here is how it works:
Initial investment in Safestyle: $50,000,000 Retained earnings on January 1, 2020: $11 million Net income for 2020: $1.8 million (which adds to retained earnings) Retained earnings on December 31, 2020 becomes $12.8 million Goodwill Impairment in 2019: $1 million Goodwill Impairment in 2020: $0.5 million Total Impairments: $1.5 million
The difference between the initial investment and the sum of end retained earnings and the total impairments gives us $50,000,000 - $12,800,000 - $1,500,000 = $38,500,000.
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Elsa joined her new law firm expecting to participate in exciting environmental law cases, and cutting edge research. After one month at the firm she still hasn't been assigned a case and spends most of her time filing standardized appeals for title disputes with insurance companies. In which stage of the socialization process is Elsa?
Full question:
Elsa joined her new law firm expecting to have a part in exciting environmental law cases, and cutting edge research. After one month at the firm she still hasn't been assigned a case and spends most of her time filing standardized appeals for title disputes with insurance companies. In which stage of the socialization process is Elsa?
A) prearrival
B) encounter
C) metamorphosis
D) ritual
E) systemic
Answer:
encounter stage of the socialization process is Elsa
Explanation:
Encounter Stage is the portion of the grades of socialization where a character enters or enrolls in an organization. Encounter is the secondary stage of socialization. People determine how to fit their expectations of equal entities inside the organization.
Because of the encounter stage, and how well a fresh employee fits, it circumscribes the potency, responsibility, and turnover of an employee. This is the type of transition, diversity, and wonder of the newcomer. This can generate a lot of stress for a fresh employee.
Wayman Corporation reports the following amounts in its December 31, 2021, income statement.
Sales revenue $ 460,000
Income tax expense $ 60,000
Interest expense 30,000
Cost of goods sold 140,000
Salaries expense 50,000
Advertising expense 40,000
Utilities expense 60,000
Required:
1. Prepare a multiple-step income statement.
Answer:
Wayman Corporation
Income Statement for the year ended December 31, 2021
Sales Revenue $460,000
Cost of Goods Sold ($140,000)
Gross Profit $320,000
Operating Expenses
Advertising Expense $40,000
Salaries Expense $50,000
Utilities Expense $60,000
Total operating expense ($150,000)
Operating Income $170,000
Interest Expense ($30,000)
EBT $140,000
Income tax expense ($60,000)
Net Income $80,000
The Gross profit is = $320,000; The total operating expense is = ($150,000) and The total Net Income is = $80,000
What is an Income Statement?
Wayman Corporation
When the Income Statement for the year ended December 31, 2021 is prepare
Sales Revenue $460,000
Cost of Goods Sold ($140,000)
The Gross Profit $320,000
Operating Expenses
Advertising Expense $40,000
Salaries Expense $50,000
Utilities Expense $60,000
The Total operating expense ($150,000)
Operating Income $170,000
Interest Expense ($30,000)
EBT $140,000
Income tax expense ($60,000)
Therefore, a Net Income of $80,000
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A company produces at an output level where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve intersects the average variable cost curve at $150. Marginal cost curve intersects the average total cost curve at $200. Marginal cost curve intersects the marginal revenue curve at $170. What would you suggest this firm should do in the short run
Answer:
The firm should continue to produce at a loss.
Explanation:
As long as intersection of Marginal cost curve and marginal revenue curve is above the $150, it is advisable for firm to continue its operations since in case of shut down it would be bearing a loss of whole fixed cost
Several lines of research have clarified the basic cognitive mechanisms involved in generalized anxiety disorder, as well as in panic disorder. Experts now believe that a factor that plays a crucial role in the onset of this process is
A. depression.
B. conditioned responses.
C. attention.
D. the hypothalamus.
Answer:D
Explanation:
Hypothalamus is a small region of the brain. It's located at the base of the brain near the Pituitary gland. Therefore panic disorder order and anxiety disorder is associated with hypothalamus.
Do you think the court made a fair determination in this case of LUCY VS ZEHMER? Would you suggest that the precedent be revisited by the court and changed given the age of the case? Explain. Support your answer with the material for this week. Also if you think it should be changed what would you suggest the change should be?
In the case Lucy v. Zehmer (1954), we learn that the mental assent of the parties is not requisite for the formation of a contract. In this case, Zehmer signed a note promising to sell his farm to Lucy while he was drunk. Afterwards, he refused to proceed.
The court stated that Lucy acted reasonably when he expected to receive the farm as had been stipulated in the contract. Moreover, the court found evidence of the fact that Zehmer was not drunk enough to not know what he was doing.
I believe that the facts of this case do not need to be changed. It is important that undisclosed intention remains immaterial except when an unreasonable meaning is known to the other party. This is because people need to be able to trust a person's word and intention when a contract is created. Under the objective theory of contracts, this sale contract should be considered a serious business transaction.
The balance sheet of Cattleman's Steakhouse shows assets of $85,900 and liabilities of $13,500. The fair value of the assets is $90,500 and the fair value of its liabilities is $13,500. Longhorn paid Cattleman's $84,120 to acquire all of its assets and liabilities. Longhorn should record goodwill on this purchase of:
Answer:
$7,120
Explanation:
Given that,
Assets = $85,900
Liabilities = $13,500
Fair value of assets = $90,500
Fair value of its liabilities = $13,500
Amount paid to acquire all of its assets and liabilities = $84,120
Net assets:
= Fair value of assets - Fair value of its liabilities
= $90,500 - $13,500
= $77,000
Goodwill = Purchase consideration - Net assets
= $84,120 - $77,000
= $7,120
Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. Ehrhardt, Michael C.. Corporate Finance: A Focused Approach (MindTap Course List) (p. 129). Cengage Learning. Kindle Edition.
The level of Greene Sisters company's accounts receivable is calculated by multiplying the average daily sales by the Days Sales Outstanding (DSO), resulting in $400,000.
Explanation:The student's question pertains to calculating the level of accounts receivable based on the Days Sales Outstanding (DSO) and average daily sales. In this case, the Greene Sisters company has a DSO of 20 days and average daily sales of $20,000. To find the level of accounts receivable, we use the formula:
Accounts Receivable = Average Daily Sales × DSO
Accounts Receivable = $20,000 × 20
Accounts Receivable = $400,000
Thus, the level of Greene Sisters' accounts receivable is $400,000.
YOU are working with a Professional Edition organization. They wish to install the Expense Tracker which requires the use of 4 custom tabs, 3 custom objects, and one custom app. If the company is already using 4 applications, 36 custom objects, and 7 custom tabs, what will happen when they try to install Expense Tracker? A. They will not be able to complete the installation process as they have reached the maximum number of custom tabs B. They will not be able to complete the installation process as they have reached the maximum number of custom objects C. The installation will succeed D. The installation will succeed, but only the reports,
Answer:
A. They will not be able to complete the installation process as they have reached the maximum number of custom tabs
Explanation:
An expense tracker is a program or application that helps keep an accurate record of the inflow and outflow of your money. Many people are working on a fixed income, and find that they don't have enough money to meet their needs towards the end of the month. So expense tracker helps to keep records of expenses.
A required number of custom tabs are required in creating the expense tracker and the company have passed reached the maximum, this would cause a fail in the installation of the expense tracker.
Whipple Corp. just issued 280,000 bonds with a coupon rate of 6.02 percent paid semiannually that mature in 25 years. The bonds have a YTM of 6.46 percent and have a par value of $2,000. How much money was raised from the sale of the bonds?
Answer:
529.64 million or $529,639,600 was received from the sale of bonds.
Explanation:
Money Raised from the sale is based on the current value of the bond. Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
As per given data
Face Value = $2,000
Coupon payment = $2,000 x 6.02% = $120.4 /2 = $60.2 semiannually
Number of period = n = 25 years x 2 period per year = 50 period
Yield to maturity = 6.46% annually = 6.46% / 2 = 3.23% semiannually
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = $60.2 x [ ( 1 - ( 1 + 3.23% )^-50 ) / 3.23% ] + [ 2,000 / ( 1 + 3.23% )^50 ]
Price of the Bond = $1,483.51 + $408.06 = $1,891.57
Cash received = Number of bonds x Price per bond = 280,000 x $1,891.57 = $529,639,600
If you have an adjustable rate mortgage with an initial rate of 4 percent, an annual interest rate cap of 1 percentage point, and a lifetime cap of 5 percentage points, what is the maximum annual interest rate you could end up paying on the ARM?
Given Information:
Lifetime cap = 5 %
Initial interest rate = 4 %
Periodic adjustment rate = 1%
Required Information:
Maximum annual interest rate = ?
Answer:
Maximum annual interest rate = 9%
Explanation:
In adjustable rate mortgage scheme, lifetime cap is the maximum limit that is allowed after the initial the interest rate. The periodic adjustment rate is 1% and it is the maximum adjustment allowed in one year.
Maximum annual interest rate = Initial interest rate + Lifetime Cap
Maximum annual interest rate = 4% + 5%
Maximum annual interest rate = 9%
Therefore, maximum annual interest rate you could end up paying on the ARM is 9%
A manufacturer can produce at most 140 units of a certain product each year. The demand equation for the product is pequalsq squared minus 100 q plus 4800 and the manufacturer's average-cost function is c overbarequalstwo thirds q squared minus 30 q plus StartFraction 15 comma 000 Over q EndFraction . Determine the profit-maximizing output q and the corresponding maximum profit.
Answer:
As it can sale up to 140 it should sale 140 units
Explanation:
P = Q^2 - 100Q + 4800
C = 2/3Q^2 -30Q + 15,000Q^-1
Profit per unit P - C = (1/3Q^2 -70Q + 4800 - 15000Q^-1)
Total Profit Profit per unit x Q
1/3Q^3 - 70Q^2 + 4800Q - 15000
As this is a third degree equation the profit scalates therefore the company should sale as much as possibley can to make profit
As it can sale up to 140 it should sale 140 units
Also if we try to detemrinate the point at which Marginal revenue matches Marginal cost:
Revenue
P x Q = (Q^2 - 100Q + 4800) x Q = Q^3 - 100Q^2 + 4800Q
marginal Revenue (slope of the revenue funciton)
3Q^2-200Q+4,800
Cost
C x Q = (2/3Q^2 -30Q + 15,000Q^-1)* Q = 2/3Q^3 -30Q^2 + 15,000
Marginal Cost (slope of the cost function)
2Q^2 - 60Q
Marginal Revenue = Marginal Cost
3Q^2-200Q+4,800 = 2Q^2 - 60Q
Q^2 -140Q + 4800 = 0
When solving with the quadratic formula for the root (profit maximization point we notice the isn't a solution thus It cannot be solved which enhance the previous point that there isn't a profit maximization point in this assignment.
To find the profit-maximizing output, we need to compute the total revenue from the demand function and total cost from the average-cost function, and subtract the total cost from the total revenue to get the profit function. By computing the derivative of the profit function, setting it to zero, and solving for q, we can find the output (q) for maximum profit. Substituting this q into the profit function gives the maximum profit.
Explanation:To answer this question, we need to understand the concepts related to profit maximization in economics. In this scenario, the profit is obtained by subtracting the total cost from the total revenue.
The total revenue (TR) can be computed from the demand function p*q; substituting p from the given demand equation, we have TR = q*(q^2 - 100q + 4800)
The total cost (TC) is obtained by multiplying the average cost (c) by q; using the given average-cost function, we have TC = q*(2/3*q^2 - 30q + 15000/q). By substituting q with 140 (maximum production), we can find TC.
The profit function Π is computed as the difference between total revenue and total cost (Π = TR - TC). For the maximum profit, we need to find the derivative of the profit function and set it to zero, solving for q. The corresponding maximum profit can be found by substitutionΠ this q value into the profit function.
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Consider an economy with 500 people in the labor force. At the beginning of every month, 5 people lose their jobs and remain unemployed for exactly one month; one month later, they find new jobs and become employed. In addition, on January 1 of each year, 20 people lose their jobs and remain unemployed for six months before finding new jobs. Finally, on July 1 of each year, 20 people lose their jobs and remain unemployed for six months before finding new jobs.
a. What is the unemployment rate in this economy in a typical month?
b. What fraction of unemployment spells lasts for one month? What fraction lasts for six months?
c. What is the average duration of a completed spell of unemployment?
d. On any particular date, what fraction of the unemployed are suffering a long spell (six months) of unemployment?
Answer:
a. What is the unemployment rate in this economy in a typical month?
5%b. What fraction of unemployment spells lasts for one month? What fraction lasts for six months?
1% lasts 1 month, 4% lasts 6 monthsc. What is the average duration of a completed spell of unemployment?
5 monthsd. On any particular date, what fraction of the unemployed are suffering a long spell (six months) of unemployment?
80%Explanation:
given:
total labor force = 500 people
every month 5 people are frictionally unemployed
at January 1, 20 people lose their jobs and find new jobs by the end of June
at July 1, 20 people lose their jobs and find new jobs by the end of December
total unemployed on a typical month = 5 + 20 = 25 ⇒ 5%
unemployed for 1 month = 5 ⇒ 1%
unemployed for 6 months = 20 ⇒ 4%
average duration of unemployment = [(20 x 6) + (5 x 1)] / 25 = 5 months
on any day, 20/25 = 80% of the unemployed are suffering a long spell unemployment
Answer:
a) 5%
b) 0.60 0.40
c) 3months
d) 80%
Explanation:
The solution is attached in the picture below
Oscar’s Red Carpet Store maintains a checking account with Academy Bank. Oscar’s sells carpet each day but makes bank deposits only once per week. The following provides information from the company’s cash ledger for the month ending February 28, 2018. Date Amount No. Date Amount Deposits: 2/4 $ 2,600 Checks: 321 2/2 $ 4,600 2/11 2,200 322 2/8 650 2/18 3,100 323 2/12 2,400 2/25 4,000 324 2/19 2,100 Cash receipts: 2/26-2/28 1,500 325 2/27 450 326 2/28 950 $ 13,400 327 2/28 1,800 Balance on February 1 $ 6,700 $12,950 Receipts 13,400 Disbursements (12,950) Balance on February 28 $ 7,150 Information from February's bank statement and company records reveals the following additional information:
a. The ending cash balance recorded in the bank statement is $11,770.
b. Cash receipts of $1,500 from 2/26-2/28 are outstanding.
c. Checks 325 and 327 are outstanding.
d. The deposit on 2/11 includes a customer's check for $450 that did not clear the bank (NSF check).
e. Check 323 was written for $2,800 for advertising in February. The bank properly recorded the check for this amount.
f. An automatic withdrawal for Oscar's February rent was made on February 4 for $1,300.
g. Oscar's checking account earns interest based on the average daily balance. The amount of interest earned for February is $190.
h. In January, one of Oscar's suppliers, Titanic Fabrics, borrowed $5,800 from Oscar. On February 24, Titanic paid $5,950 ($5,800 borrowed amount plus $150 interest) directly to Academy Bank in payment for January's borrowing.
i. Academy Bank charged service fees of $120 to Oscar’s for the month. Prepare a bank reconciliation for Oscar's checking account on February 28, 2018.
To prepare a bank reconciliation for Oscar's checking account, compare the cash ledger with the bank statement and make adjustments for discrepancies in deposits, checks, outstanding items, and additional information from the bank. The final adjusted balance on the cash ledger is $7,150.
Explanation:In order to prepare a bank reconciliation for Oscar's checking account on February 28, 2018, we need to compare the company's cash ledger with the bank statement and make adjustments for any discrepancies. Here's the step-by-step process:
Start with the balance on Oscar's cash ledger on February 1, which is $6,700Include the cash receipts from February, which total $13,400Subtract the disbursements from February, which total $12,950Add any outstanding receipts that haven't cleared the bank yet. In this case, it's $1,500 from 2/26-2/28Subtract any outstanding checks that haven't been deducted from the account yet. In this case, it's checks 325 and 327Make adjustments for any additional information from the bank statement. For example, the NSF check of $450 on the 2/11 deposit and the correct recording of check 323 for $2,800Take into account any interest earned or service fees charged by the bank. In this case, Oscar's earned $190 in interest and was charged $120 in service feesFinally, compare the adjusted balance on Oscar's cash ledger with the ending cash balance recorded in the bank statement, which is $11,770The final adjusted balance on Oscar's cash ledger on February 28, 2018 is $7,150.
Record transactions and prepare a partial income statement using a perpetual inventory system (LO6-2, 6-5) The following information applies to the questions displayed below At the beginning of July, CD City has a balance in inventory of $3,400. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $2,300, terms 1/10, n/30 July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110. July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,800, that had a cost of $3,000. July 15 Receive full payment from customers related to the sale on July 12 July 18 Purchase CDs on account from Music Supply for $3,100, terms 1/10, n/30 July 22 Sell CDs to customers for cash, $4,200, that had a cost of $2,500. July 28 Return CDs to Music Supply and receive credit of $300. July 30 Pay Music Supply in ful.
To record transactions and prepare a partial income statement using a perpetual inventory system, follow the given steps and calculate the necessary values.
To record transactions and prepare a partial income statement using a perpetual inventory system, we need to follow these steps:
Record the purchases of CDs on account from Wholesale Music on July 3 for $2,300, and pay cash for freight charges related to the purchase on July 4 for $110.Return incorrectly ordered CDs to Wholesale Music on July 9 and receive a credit of $200.Pay Wholesale Music in full on July 11.Sell CDs to customers on account on July 12 for $5,800 with a cost of $3,000, and receive full payment from customers on July 15.Record the purchase of CDs on account from Music Supply on July 18 for $3,100.Sell CDs to customers for cash on July 22 for $4,200 with a cost of $2,500.Return CDs to Music Supply on July 28 and receive a credit of $300.Pay Music Supply in full on July 30.Using these transactions, we can then prepare a partial income statement by calculating the sales revenue, cost of goods sold, and gross profit based on the given information.
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You run a successful casual dining restaurant in Virginia and are reviewing historical data in an attempt to identify potential threats to your business. What would NOT be helpful to you in this process?
Options:
A) Reading news articles about a heist that occurred last year at a bank in California.
B) Viewing security footage that shows a recently fired employee stealing from the cash register.
C) Searching the internet for stories about incidents that commonly occur in casual dining restaurants around the country.
D) Identifying how often floods, earthquakes, and fires occur in your area of Virginia.
Answer:B) Viewing security footage that shows a recently fired employee stealing from the cash register.
Explanation: Historical data are a set of data collected earlier about certain issues or subjects, historical data helps decision makers to prepare and take adequate and necessary steps to mitigate or stop the recurrence of adverse activities or prepare for a good and Positive outcome.
VIEWING THE SECURITY FOOTAGE OF A RECENTLY FIRED EMPLOYEE STEALING FROM THE CASH REGISTER IS NOT A HISTORICAL DATA AS IT DEALS WITH PRESENT ISSUE BECAUSE IT OCCURED RECENTLY.
Nelson Manufacturing has two processing departments, Department I and Department II. The raw materials processed at Department I are sent to Department II for further processing. During June, direct materials worth $40,000 purchased on account were assigned to Department I. The journal entry to record direct materials used in production is ________.
Answer:
The journal entry to record the direct material used in production is given below:
Dr Work-In Process Inventory $40000
Cr Raw Materials Inventory $40000
Explanation:
The work in process inventory is debited since it is the receiving account ,while raw material inventory is credited as it is the giving account.
The work in process depicts raw materials currently being worked upon at the production, from which completed goods are then transferred to finished goods inventory.
The raw materials inventory account is the account where raw materials received from vendors are first of all recorded before the need to issue to production process.
When such materials are received in the warehouse , the raw materials inventory account is debited while the supplier account is appropriately credited to show the amount of indebtedness.
U.S. Products operates two divisions with the following sales and expense information for the month of July: East Division: Sales $240,000; Contribution margin ratio 35%, Direct fixed expenses $48,000. West Division: Sales $160,000; Contribution margin ratio 50%, Direct fixed expenses $32,000. U.S. Products' total fixed expenses during July was $200,000. The East Division’s segment margin for July is:a. $36.000b.$40.000c.$80.000d.$84.000
Answer:
Explanation:
East division segment margin = Contribution margin - Direct fixed expense
Contribution margin = $240,000*35% = $84,000
Direct fixed expenses = $48,000
So segment margin is 84,000 - 48000 = $36000
Answer is option A
To calculate the East Division’s segment margin for July, the total contribution margin for the East Division needs to be calculated. The segment margin is then calculated by subtracting the total fixed expenses from the total contribution margin. The East Division’s segment margin for July is $84,000.
Explanation:To calculate the East Division’s segment margin for July, we first need to calculate the total contribution margin for the East Division. The contribution margin is calculated by subtracting the direct fixed expenses from the sales revenue, and then multiplying it by the contribution margin ratio. For the East Division, the total contribution margin would be ($240,000 - $48,000) * 35% = $84,000.
The segment margin is then calculated by subtracting the total fixed expenses from the total contribution margin. For U.S. Products, the total fixed expenses during July was $200,000. Therefore, the East Division’s segment margin for July would be $84,000 - $200,000 = $-116,000.
Since the segment margin is negative, it indicates that the East Division has a loss for the month of July. Therefore, the correct answer is: d. $84,000.
Dear Mr. Dunlap: Subject: Your Request for Invoicing Process Information
I am happy to let you know that I can answer your question regarding the company invoice processing. As you may know, once a contract has been signed, service providers may invoice the company at any time during the project as work is completed.
This is an effective beginning for a direct reply letter.
(A) True
(B) False
Answer:
A. True
The response denotes strong interest in helping the individual with the invoice process
Answer:
False
Explanation:Direct reply letters are letters issued by Organisations to either their suppliers or other participants in their business,it is usually written to give a reply to an enquiry or in response to a correspondence.
A direct reply letter should meet certainly criteria which includes the following;
(1) It must have a subject
(2) It should contain previous correspondence
(3) It should be clear and unambiguous
(4) It should be legible etc
AN EFFECTIVE DIRECT REPLY LETTER MAKES COMMUNICATION DECENT AND EFFECTIVE AND ASSISTS IN FACILITATING A POSITIVE PROJECT OR BUSINESS OUTCOME.
Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine-hours. At the beginning of the year, it estimated total manufacturing overhead costs to be $1,010,000, total number of direct labor hours to be 5000, and total number of machine-hours to be 25,000 hours. What was the predetermined overhead allocation rate? (Round your answer to the nearest cent.)
Answer:
The predetermined overhead rate allocation rate is $40.4 per machine hour.
Explanation:
The predetermined overhead allocation rate is calculated as total manufacturing/total machine hours
Predetermined overhead allocation rate=$1010000/25000
Predetermined overhead rate =$40.4 per machine hour
Invariably,this is the overhead allocation rate that would be used in calculating overhead on each unit of output depending on the number of machine hours that each unit of output observed .
For instance, let us assume each of output takes 5 machine hours ,hence the overhead per unit of product will be $40.4*5 $202.
Also if one unit only consumes 0.5 machine hour,each unit of output would cost $20.2($40.4*0.5) in overhead
The predetermined overhead allocation rate at Arabica Manufacturing is $40.40 per machine-hour, calculated by dividing the estimated total manufacturing overhead costs by the total estimated number of machine-hours.
Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine-hours.
To calculate this rate, divide the total estimated manufacturing overhead costs by the total estimated number of machine-hours. Using the information provided:
Estimated total manufacturing overhead costs: $1,010,000
Total number of machine-hours: 25,000 hours
Now, we compute the predetermined overhead allocation rate as follows:
Predetermined overhead rate = Total estimated overhead costs / Total estimated number of machine-hours
Predetermined overhead rate = $1,010,000 / 25,000 hours
Predetermined overhead rate = $40.40 per machine-hour
Therefore, the predetermined overhead allocation rate is $40.40 per machine-hour.
Yulan, Inc has beginning Retained Earnings of $35,000, ending Retained Earnings of $39,500, and net income of $21,500. What was the amount of dividends declared during the year?
a. $17,000
b. $13,500
c. $4,500
d. $21,500
Answer:
$17,000
Explanation:
Retained earnings is the sum of all nondistributed profits earned by a company since it begun operations. Retained earnings either increase or decrease as a result of net income or loss and dividend paid to shareholders.
Dividends paid = beginning retained earnings + Net income - ending retained earnings
$35,000 + $21,500 - $39,500 = $17,000
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