Answer:
The answer is B. Out of labor force.
Explanation:
On the balance sheet, owner's equity is a.equal to the total of assets and liabilities b.subtracted from liabilities and the net amount is equal to assets c.added to assets and the two are equal to liabilities d.added to liabilities and the two are equal to assets
Answer:
d.added to liabilities and the two are equal to assets.
Explanation:
The accounting equation is also called the balance sheet equation and states the a companie's assets is a sum of the total liabilities and owner's equity.
This is the basis of double entry accounting, where every transaction has an equal amount of debits and credits.
Mathematically
Asset= Liabilities + Owner Equity
Owner's equity, as part of a balance sheet, is added to liabilities, and the sum is equal to the total assets of the company. This reflects the fundamental accounting equation: Assets = Liabilities + Owner's Equity.
Explanation:In the context of a balance sheet, owner's equity is d. added to liabilities and the two are equal to assets. In simple terms, this means the sum of the owner's equity and the company's liabilities should equal the total assets of the company. The balance sheet is basically a financial statement that follows the equation: Assets = Liabilities + Owner's Equity. This basic principle of accounting shows the relationship between a company's resources (assets), financial obligations (liabilities), and the owner's share (equity).
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There are arguments for and against the alternative exchange rate regimes. a) List the advantages of the flexible exchange rate regime. b) Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime. c) Rebut the above criticism from the viewpoint of the proponents of the flexible exchange rate regime.
Answer:
a. The advantages of the flexible exchange rate system include: (I) provides insulation against unemployment problem in other countries and (ii) promotes economic development and helps to achieve full employment in the country, iii) automatically corrects the disequilibrium in the balance of payments.
b. If exchange rates are fluctuating randomly, that may discourage international trade and encourage market segmentation, they are very volatile
c. Economic agents can hedge exchange risk by means of forward contracts and other techniques. In addition, under a fixed exchange rate regime, governments often restrict international trade in order to maintain the exchange rate.
Explanation:
Tustin's Catering began with cash of $15,000. Tustin then bought supplies for $2,300 on account. Separately, Tustin paid $4,700 for equipment.
Required:
a. How much in total assets does Tustin have?
b. How much in liabilities does Tustin owe?
Tustin's Catering has total assets of $22,000 after the initial transactions, which includes cash, equipment, and supplies. The total liabilities amount to $2,300, which is the cost of the supplies bought on account.
Explanation:The question asks for the total assets and liabilities Tustin's Catering has after the initial transactions. To calculate total assets, we start with the initial cash of $15,000, add the cost of equipment which is $4,700, and include the supplies bought on account for $2,300. Thus, the total assets amount to $15,000 + $4,700 + $2,300 = $22,000. Regarding liabilities, since the supplies were bought on account, this means Tustin owes money for these supplies, which is the amount spent on them, $2,300.
a. Total Assets:
Cash: $15,000
Supplies on Account: $2,300
Equipment: $4,700
Total Assets: $15,000 + $2,300 + $4,700 = $21,000
b. Total Liabilities:
Supplies on Account: $2,300
Total Liabilities: $2,300
The branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole is called A. macroeconomics. B. microeconomics. C. public economics. D. normative economics.
Answer:
A. Macroeconomics
Explanation:
Macroeconomics is the branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole. In other words, macroeconomics is a branch of economics concerned with the level of employment, savings, investment, national income and general price level of an economy. General equilibrium forms the base of macroeconomics. Its objectives are full employment, economic growth and price stability.
Suppose there is a major technological advance in the production of a good that causes production costs to fall. If demand for the product is relatively inelastic, what will happen in the market? Price will relatively decrease greater than the increase in quantity. Price and quantity will change by the same amount. Price will relatively decrease less than the increase in quantity.
Answer:
major key
Explanation:
the decrease of the price and quantity
There is a major technological advance in the production of a good that causes production costs to fall. If demand for the product is relatively inelastic, will happen in the market is the price will relatively decrease less than the increase in quantity. Thus, option (c) is correct.
What is production?The term production refers to the process of things can be created. The production completes with help of labor, employees, and machinery. The production process as raw material converted into finished goods. The production of the goods and the services. The production was the increased the economic wealth.
According to the technological advance in the production of the goods are the large causes production costs to fall. The price was the downfall on the product is relatively inelastic the increases the quantity. The quantity of the product is the increases and the price is the low.
As a result, the significance of the production are the aforementioned. Therefore, option (c) is correct.
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Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders' equity: a. Accounts payable b. Accounts receivable c. Fees earned d. Supplies e. Supplies expense f. Utilities expense
Answer and explanation:
An asset is a resource with economic value. Assets can be tangible, such as equipment and land or intangible including things like a brand, a chemical formula or property rights.
Liabilities are all those responsibilities firms incur as a result of the operations of the business. Liabilities include notes, accounts, salaries, and interest payable.
Stockholders' Equity represents the equity stakeholders own of a company. They could be common stock, preferred stock, retained earnings or expenses incurred during the period. Thus:
A) Accounts payable (Liability)
B) Accounts receivable (Asset)
C) Fees earned (Stockholder's equity)
D) Supplies (Assets)
E) Supplies expense (Stockholder's equity)
F) Utilities expense (Stockholder's equity)
a. Accounts payable is a liability,
b. accounts receivable and supplies are assets,
c. fees earned is associated with stockholders' equity,
d. supplies are assets,
e. both supplies expense and f. utilities expense are operating expenses that indirectly affect equity.
Explanation:In the context of business and accounting:
Accounts payable is a liability. It represents the money a company owes to someone else or its creditors. For example, when a company purchases supplies from a vendor on credit, it creates an account payable.Accounts receivable is an asset. It represents the money owed to a company by its customers who have bought goods or services on credit. For instance, if a company sells a product to a customer on credit, it creates an account receivable.Fees earned is associated with stockholders' equity. It is revenue that increases the equity, assuming that no liabilities have been created in the process of earning these fees.Supplies are considered as an asset, as they represent items that can be used for producing goods or services in the future.Supplies expense and Utilities expense are neither assets, liabilities, nor directly related to stockholders' equity. They are operating expenses that are deducted from revenues in the calculation of net income, which indirectly affects stockholders' equity by reducing it.Learn more about Business Accounting here:https://brainly.com/question/36268454
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Bob bought some land costing $15,390. Today, that same land is valued at $44,817. How long has Bob owned this land if the price of land has been increasing at 5 percent per year?
Answer:
Bob bought the land 21 years and 332 days ago.
Explanation:
Giving the following information:
Bob bought some land costing $15,390. Today, that same land is valued at $44,817.
To calculate the number of years passed we need to use a variation of the Future Value formula:
FV=PV*(1+i)^n
Isolating n:
n=[ln(FV/PV)]/ln(1+i)
n= [ln(44,817/15,390) / ln(1.05)]
n= 21.91
0.91*365= 332
Bob bought the land 21 years and 332 days ago.
Porters Inc. issued a 120-day note in the amount of $160,000 on 12/14/12 with an annual rate of 9%. What amount of interest has accrued as of 12/31/12?
Answer:
The amount of interest has accrued as of 12/31/12: $720
Explanation:
Porters Inc. issued a 120-day note in the amount of $160,000 on 12/14/12 with an annual rate of 9%.
The amount of interest Porters Inc. pays per year = $160,000 x 9% = $14,400
Assuming 1 year period to calculated interest has 360 days.
From 12/14/12 to 12/31/12, Porters Inc. had issued the note for 18 days.
The amount of interest has accrued on 12/31/12:
$14,400/360 x 18 = $720
Final answer:
To calculate the accrued interest of $160,000 at a 9% annual interest rate for 17 days, the calculation yields an interest amount of $680 as of 12/31/12.
Explanation:
The question involves calculating the amount of interest accrued on a note payable by Porters Inc.
To find out how much interest has accumulated as of 12/31/12, we first need to calculate the number of days from the issue date (12/14/12) to the date of interest calculation (12/31/12), which is 17 days. The formula for the interest accrued on a note is: Interest = Principal × Rate × Time. Here, the note's principal is $160,000, the annual interest rate is 9%, and the time in years for the 17 days of interest (since there are 360 days in the banking year) is 17/360.
To calculate the accrued interest: $160,000 × 9% × (17/360) = $680. Therefore, as of 12/31/12, the accrued interest is $680.
Grove Corp. purchased equipment at a cost of $260,000 in January, 2012. As of January 1, 2016, depreciation of $88,000 had been recorded on this asset. Depreciation expense for 2016 is $22,000. After the adjustments are recorded and posted at December 31, 2016. What are the balances for the Depreciation Expense and Accumulated Depreciation?
A Depreciation Expense: $ 22,000; Accumulated Depreciation: $110,000
B Depreciation Expense: $ 22,000; Accumulated Depreciation: $ 88,000
C Depreciation Expense: $110,000; Accumulated Depreciation: $110,000
D Depreciation Expense: $110,000; Accumulated Depreciation: $ 88,000
Answer:
A Depreciation Expense: $ 22,000; Accumulated Depreciation: $110,000
Explanation:
Given that
Purchase cost of equipment = $260,000
Depreciation at the beginning of year 2016 = $88,000
Depreciation expense = $22,000
So, the balance would be
Depreciation expense = $22,000
And, the accumulated depreciation is
= Depreciation expense + Depreciation at the beginning of year 2016
= $22,000 + $88,000
= $110,000
Organizational obligations are the same as personal ethical obligations Group of answer choices True False
Answer:FALSE
Explanation:Organisational obligations are not the same as personal ethical obligations in many ways.
Organisational obligations are obligations which concerns different class and set of persons working together in an organization towards achieving the goals of the organization,organisational obligations are a collection of different personal Ethical obligations which are brought together to achieve the goals of an organization.
Personal ethical obligations are sets of principles, guidelines or norms that guides a person's conduct, it happens on the personal or individual level.
Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $160 million of 8% bonds, dated January 1, on January 1, 2013. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $142 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2013, was $150 million.
Required:
1. Prepare the journal entry to record Fuzzy Monkey's investment on January 1, 2013.
a. Record the Fuzzy Monkey's investment on bonds on January 1, 2013.
2. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2013 (at the effective rate).
a.Record the interest revenue on June 30, 2013.
3. Prepare the journal entry by Fuzzy Monkey to record interest on December 31, 2013
a. record interest revenue
4. At what amount will Fuzzy Monkey report its investment in the December 31, 2013, balance sheet?
5. Prepare an entry necessary to achieve the reporting objective.
a. fair value adjustment
6. How would Fuzzy Monkey's 2013 statement of cash flows be affected by this investment?
a. Operating CF
b. Investing CF
Answer:
Following is given the solution for all parts as required.
I hope it will help you!
Explanation:
J Bryant, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended January 31.Sales revenue $779,000 Cost of goods sold 334,500 Gross margin 444,500 Less operating expenses Selling expense$24,720 Administrative expense 51,100 75,820 Net operating income $368,680 Bryant sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.Contribution Format Income Statement Total Per Unit Sales 779,000.00250.00Less: Variable Expenses Cost of Goods Sold334,500.00 107.35Selling Expense20,254.00 6.50Administrative Expenses38,950.00 12.50Total Variable Expenses 393,704.00126.35Contribution Margin 385,296.00123.65Less: Fixed Expenses Selling Expense4,466.00 Administrative Expenses12,150.00 Total Fixed Expenses 16,616.00 Operating Income 368,680.00 QUESTION:1. Operating Expenses = __________x + $_______________2. If 3100 coats are sold next month, what is the expected total contribution margin? (Round answer to 0 decimal places, e.g. 45,000.)
Answer:
1: $75,820
2: $442,215.
Explanation:
1: The operating expenses can be described as normal or routine expense of a business. The operating expense for the J Bryant, Ltd For the month ended January 31 will be $75,820. This figure includes Selling expense and Administrative Expense which is $24,720 and $ 51,100.
2: The contribution margin is determined by subtracting Total Variable cost from Total Revenue. When the company sells 3,100 units next month then Total Sales is $775,000 (3,100 units * $250 per unit) and Total Variable Cost is $332,785 (3,100 * $107.35 per unit). To calculate total contribution margin we subtract Total variable cost from Total sales which gives us $442,215 ($775,000 - $332,785).
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine's useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product.
Determine the machine's second-year depreciation under the straight-line method.
The machine's second-year depreciation under the straight-line method. is $3,850.
Straight-Line DepreciationAnnual Depreciation Expense = Cost minus - salvage/ Estimated useful life (years)
Annual Depreciation Expense = $43,500 - $5,000 / (10 years)
Annual Depreciation Expense = $38,500/10
Annual Depreciation Expense = $3,850
This, the Year 2 Depreciation is $3,850 and the Year end book value (Year 2) is $35,800.
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To calculate the second-year depreciation of the manufacturing machine using the straight-line method, subtract the salvage value from the cost of the machine, and divide by the useful life. The second-year depreciation would be $3,850.
Explanation:The student is asking about calculating depreciation for a manufacturing machine using the straight-line method. To determine the second-year depreciation, we subtract the salvage value from the cost of the machine, and divide that by the machine's useful life in years. The initial cost of the machine is $43,500, the salvage value is $5,000, and the machine's useful life is estimated to be 10 years. Therefore, the annual depreciation is ($43,500 - $5,000) / 10 = $3,850. This is the machine's second-year depreciation under the straight-line method, which implies that the depreciation expense is the same for each year of the asset's useful life.
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Treasury bonds paying an 7.4% coupon rate with semiannual payments currently sell at par value.
What coupon rate would they have to pay in order to sell at par if they paid their coupons annually?
(Hint: What is the effective annual yield on the bond?)
(Round your answer to 2 decimal places.)
Answer:
The formula for effective annual yield is as under:
Effective Annual Yield = (1+r/n)^n -1
Here we have r which is 7.4%, n is 2 for semi-annually. By putting values in the above equation we have:
Effective Annual Yield = (1+7.4%/2)^2 -1 = 0.075369 which is almost 7.54%
The effective annual yield on the bond is 7.54% and for the bond which would be paid annually would have coupon rate of 7.54% if the company desires to issue the bond at par.
Debt Book Equity Market Equity Operating Income Interest Expense Firm A 500 300 400 100 50 Firm B 80 35 40 8 7 1. What is the market debt-to-equity ratio of each firm? 2. What is the book debt-to-equity ratio of each firm? 3. What is the interest coverage ratio of each firm? 4. Which firm will have more difficulty meeting its debt obligations?
Answer:
Data for Question
Debt Book Equity Market Equity Operating Income Interest Expense
Firm A
500 300 400 100 50
Firm B
80 35 40 8 7
1.
Market debt-to-equity ratio = Debt of Firm / Market Equity
Firm A = 500 /400 = 1.25
Firm B = 80 / 40 = 2
2.
Book debt-to-equity ratio = Debt of Firm / Book Equity
Firm A = 500 /300 = 1.67
Firm B = 80 / 35 = 2.29
3.
Interest coverage ratio = Operating Income / Interest Expense
Firm A = 100 /50 = 2
Firm B = 8 / 7 = 1.14
4.
Firm B will have more difficulty meeting its debt obligations because it has higher debt equity ratio and lower interest coverage ratio than Firm A.
Zola borrows $1000. To repay the amount, she makes 12 equal monthly payments of $95. Compounding is done monthly. Determine nominal interest rate. Hint use the excel formula RATE to find the monthly effective interest rate. Then convert that to the nominal rate. Remember nominal interest does not account for sub-period compounding. (EX: effect monthly interest is 3%, the nominal rate is 3*12 = 36%)
Answer:
Effective monthly rate 2.076%
Yearly nominal rate: 24,912%
Explanation:
In excel we have to specify the number of period. The amount we borrow and the payment we are doing This should be negative as represent a cash outflow.
This is solving for the rate of the annuity for 95 of 12 months that discounted at X rate gives 1,000 as the present value:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
[tex]95 \times \frac{1-(1+r)^{-10} }{rate} = 1000\\[/tex]
we write on A1
=RATE(12;1000;-95)
and we will receive 2.076% as answer
Now to convert into nominal:
2.076 x 12 = 24,912%
The nominal interest rate can be calculated with the RATE formula in Excel to determine the monthly effective interest rate. We then convert this to the nominal annual interest rate by simple multiplication. If, for example, the effective monthly interest rate is 3%, the nominal annual interest rate would be 36%.
Explanation:To calculate the nominal interest rate, we first need find the monthly effective interest rate using the Excel RATE function. Given the 12 equal payments of $95, for a loan of $1000, we can use the formula RATE(12,-95,1000,0). The negative sign is used because it is a cash outflow, a payment. The result is the monthly effective interest rate.
After getting the monthly effective rate, we will then need to convert the effective monthly interest rate to annual nominal interest rate. We do this through simple multiplication. This is provided we are assuming simple interest. For example, if the effective monthly interest rate is 3%, then the nominal annual interest rate is 3% x 12 = 36%.
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Suppose that Greece and Austria both produce jeans and stained glass. Greece's opportunity cost of producing a pane of stained glass is 5 pairs of jeans while Austria's opportunity cost of producing a pane of stained glass is 10 pairs of jeans. By comparing the opportunity cost of producing stained glass in the two countries, you can tell thatGreece has a comparative advantage in the production of stained glass andAustria has a comparative advantage in the production of jeans. Suppose that Greece and Austria consider trading stained glass and jeans with each other. Greece can gain from specialization and trade as long as it receives more than5 pairs of jeans for each pane of stained glass it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than1/10 pane of stained glass for each pair of jeans it exports to Greece. Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of jeans) would allow both Austria and Greece to gain from trade? Check all that apply. a. 9 pairs of jeans per pane of stained glass. b. 3 pairs of jeans per pane of stained glass. c. 1 pair of jeans per pane of stained glass. d. 8 pairs of jeans per pane of stained glass
Answer:
a. 9 pairs of jeans per pane of stained glass.
d. 8 pairs of jeans per pane of stained glass.
Explanation:
Greece and Austria both produce jeans and stained glass. Greece opportunity cost is 5 pairs of jeans per stained glass and Austria opportunity cost 10 pairs jeans per stained glass. Greece has comparative advantage in producing stained glass whereas Austria has comparative advantage in producing Jeans.
If these both countries agree to trade with each other, the trade would be beneficial if Greece receives more than 5 pairs of jeans per pane of stained glass. If the trade took place at more than 5 pairs of jeans for per pane of stained glass it will be beneficial for both countries. Option a and option d has more than 5 pairs of jeans. Option b has 3 pairs of jeans so the trade is not beneficial for either countries and option c has 1 pair of jeans per pane of stained glass which also a trade not suitable to both countries.
Greece has a comparative advantage in stained glass production and Austria has a comparative advantage in jeans production. Both countries can gain from trade if the price of stained glass is 3 pairs of jeans per pane.
Explanation:Greece has a comparative advantage in the production of stained glass and Austria has a comparative advantage in the production of jeans. In order for both countries to gain from trade, the price of stained glass in terms of jeans should be between 5 and 10 pairs of jeans per pane of stained glass. Options a, c, and d do not fall within this range. Therefore, the correct answer is option b: 3 pairs of jeans per pane of stained glass.
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Bond outstanding with a coupon rate of 5.66 percent and semi-annual payments. The bond has a yield to maturity of 6.3 percent, a par value of $2,000, and matures in 16 years. What is the quoted price of the bond?
Answer
Price of bond = 17.96825
Explanation:
Bond price = ∑(C / [tex](1+YTM)^{n}[/tex] )+ P /[tex](1+i)^{n}[/tex]
where
n = no. of years
C = Coupon payments
YTM = interest rate or required yield
P = Par Value of the bond
put values in above equation
price = (5.66%/2) × 2000 × (0.31746) + ( 2000 ÷ 4.595×[tex]10^{18}[/tex])
= 17.96825
Scott Confectionery sells its Stack-o-Choc candy bar for $0.60. The variable cost per unit for the candy bar is $0.34; total fixed costs are $171,000.
a. What is the contribution margin per unit for the Stack -O- Choc candy bar?
b. What is the contribution margin ratio for the Stack -O-Choc candy bar?
C. What is the breakdown point in units? In sales dollars?
D. If an increase in chocalate prices causes the variable cost per unit to increase to $0.55, what will happen to the breakeven point?
Answer:
(i) $0.26
(ii) 43.33%
(iii) 657,692.31 units
(iv) 3,420,000
Explanation:
Given that,
Selling price = $0.60
Variable cost per unit = $0.34
Total fixed costs = $171,000
(i) contribution margin per unit = Selling price - Variable cost per unit
= $0.60 - $0.34
= $0.26
(ii) contribution margin ratio:
= (contribution margin ÷ Selling price) × 100
= ($0.26 ÷ $0.6) × 100
= 43.33%
(iii) Break-even point in units:
= Total Fixed cost ÷ contribution margin
= (171,000 ÷ 0.26)
= 657,692.31 units
(iv) If an increase in chocolate prices causes the variable cost per unit to increase to $0.55.
contribution margin per unit = Selling price - Variable cost per unit
= $0.60 - $0.55
= $0.05
New Break-even point in units:
= Total Fixed cost ÷ contribution margin
= (171,000 ÷ 0.05)
= 3,420,000 units
Therefore, there is an increase in the break-even units or more units have to be sold to cover the variable and fixed cost.
a. The contribution margin per unit for Stack-O-Choc candy bars is $0.26.
b. The contribution margin ratio is approximately 43.33%.
c. The breakdown point is approximately 657,692 units or $394,615.38 in sales dollars.
d. If the variable cost per unit increases to $0.55, the new breakeven point will be 3,420,000 units, indicating a higher breakeven level.
a. The contribution margin per unit for the Stack-O-Choc candy bar can be calculated as follows:
Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit Contribution Margin per Unit = $0.60 - $0.34 = $0.26
b. The contribution margin ratio (CM ratio) is the contribution margin per unit divided by the selling price per unit, expressed as a percentage:
CM Ratio = (Contribution Margin per Unit / Selling Price per Unit) x 100%
CM Ratio = ($0.26 / $0.60) x 100% ≈ 43.33%
c. The breakdown point in units can be calculated using the following formula:
Breakdown Point in Units = Total Fixed Costs / Contribution Margin per Unit Breakdown Point in Units = $171,000 / $0.26 ≈ 657,692 units
To find the breakdown point in sales dollars, you can multiply the breakdown point in units by the selling price per unit:
Breakdown Point in Sales Dollars = Breakdown Point in Units x Selling Price per Unit
Breakdown Point in Sales Dollars = 657,692 units x $0.60 ≈ $394,615.38
d. If the variable cost per unit increases to $0.55 due to higher chocolate prices, you can calculate the new breakeven point using the updated variable cost:
New Breakdown Point in Units = Total Fixed Costs / Updated Contribution Margin per Unit
New Breakdown Point in Units = $171,000 / ($0.60 - $0.55) = $171,000 / $0.05 = 3,420,000 units
So, if the variable cost per unit increases to $0.55, the new breakeven point in units will be 3,420,000 units. This increase in variable cost will result in a higher breakeven point.
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You want to buy your dream car which will cost you $5700. If you could invest your entire savings of $4000 at an annual interest of10%, how long (in years rounded to two decimal places) would you have to wait until you have accumulated enough money to buy the car
Answer:
It will take 3 years and 263 days to collect $5,700
Explanation:
Giving the following information:
The car cost $5700. You could invest your entire savings of $4000 at an annual interest of 10%.
Based on the Future Value formula we can calculate the required number of years to achieve the objective:
FV= PV*(1+i)^n
Isolating n:
n=[ln(FV/PV)]/ln(1+i)
n= [ln(5,700/4,000)/ln(1+0.10)]
n= 3.72
0.72*365= 263 days
It will take 3 years and 263 days to collect $5,700
If a firm’s earnings per share grew from $1 to $2 over a 10-year period, the total growth would be 100%, but the annual growth rate would be less than 10%. True or false? Explain.
Answer:
TRUE
Explanation:
as the growth rate follows the law of compounding it will be applied to the increases and then over the icnrease of the increases and so on. Giving a higher grow than 100% if 10 per year is applied:
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
Principal $1.00 earnings
time 10.00 years
growth rate 10% = 10/100 = 0.10000
[tex]1 \: (1+ 0.1)^{10} = Amount[/tex]
Amount 2.59
This will be a grow of 2.59 - 1 = 1.59 = 159% which isn't the 100% percent growth the company actually had
Gammil company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $390,000, what was the cost of raw materials purchased? A. $366,000 B. $414,000 C. $390,000 D. $420,000
Answer:
The cost of raw materials purchased was B. $414,000
Explanation:
The cost of raw materials purchased is calculated by using following formula:
The cost of raw materials purchased = Ending raw materials inventories + Direct materials used - Beginning raw materials inventories
Gammil company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. Direct materials used were $390,000.
The cost of raw materials purchased = $120,000 + $390,000 - $96,000 = $414,000
Fitzgerald Supermarkets (FS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities their activity cost rates as follows:
Ordering $95 per purchase order
Delivery and receipt of merchandise $76 per delivery
Shelf-stocking $19 per hour
Customer support and assistance $0.15 per item sold
The revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity-area usage of the three product lines are as follows:
Baked Goods Milk and Fruit Juice Frozen Products
Financial data
Revenues $60,000 $66,500 $50,500
Cost of goods sold $41,000 $51,000 $32,000
Store support $12,300 $15,300 $9,600
Activity-area usage (cost-allocation base)
Ordering (purchase orders) 44 24 14
Delivery (deliveries) 120 60 36
Shelf-stocking (hours) 170 150 20
Customer support (items sold) 15,400 20,200 7,960
Under its simple costing system, FS allocated support costs to products at the rate of 30% of the cost of goods sold.
Required:
1. Use the simple costing system to prepare a product-line profitability report for FS.
2. Use the ABC system to prepare a product-line profitability report for FS.
3. What new insights does the ABC system in requirement 2 provide to FS managers?
Answer:(1) Baked Goods profit $6,700, Milk and Fruit juice profit $200, Frozen Products profit $8,900 (2) Baked Goods profit $160, Milk and Fruit juice profit $2,870, Frozen Products Profit $12,860. (3) it provide insight to FS managers that Frozen Products is the most profitable among the three product lines.
Explanation:
(1) Baked Goods. Milk and Fruit juice. Frozen Products
$ $ $
Revenue. 60,000. 66,500. 50,500
Less : Cost of good sold 41,000. 51,000. 32,000
------------- -------------- ---------------
Gross Margin. 19,000. 15,500. 18,500
Less: Store Support. 12,300. 15,300. 9,600
----------- ------------ -------------
Profit. 6,700. 200. 8,900
------------- --------------- ----------------'
(2)
Baked Goods. Milk and Fruit juice. Frozen Products
$ $ $
Revenue. 60,000. 66,500. 50,500
Less Cost of good sold 41,000. 51,000. 32,000
------------- ---------------- -----------
Contribution. 19,000. 15,500. 18,500
Less Overhead
Ordering cost. 4,180. 2,280. 1,,330
Delivery&Receipt. 9,120. 4,560. 2,736
Shelf Stocking. 3,230. 2,850. 380
Customer Support & Assistant 2,310. 3,030. 1,194
------------ -------------- ------------
Profit. 160. 2,870. 12,860
------------------ ----------------- ---------------
(3) The new insight to FS managers is that Frozen Products is the most profitable among the three products lines
Workings
Ordering cost ($95 × 44) = 4,180 ($95 × 24) = 2,280 ($95 × 14) = 1,330
Delivery &Receipt ($76 × 120) = 9,120 ($76 × 60) = 4,560 ($76 × 36) = 2,736
Shelf Stocking ($19 × 170) = 3,230 ($19 × 150) = 2,850 ( $19 × 20) = 380
Customer Support &Assistant ($0.15 × 15,400) = 2,310 ($0.15 × 20,200) = 3,030 ($0.15 × 7,960)= 1,194
To prepare a product-line profitability report for FS, first, use the simple costing system by allocating support costs to products at a rate of 30% of the cost of goods sold. Second, use the ABC system by calculating the total activity cost for each product line and allocating it based on activity-area usage. The ABC system provides more insights into cost drivers and helps in analyzing profitability.
Explanation:1. Simple costing system:
Under the simple costing system, FS allocates support costs to products at a rate of 30% of the cost of goods sold. To prepare a product-line profitability report, we need to calculate the support costs allocated to each product line by multiplying their respective cost of goods sold by 30%. Then, subtract the allocated support costs from the revenues to determine the profitability.
2. ABC costing system:
Under the ABC costing system, we need to calculate the total activity cost for each product line by multiplying the activity cost rate with the respective activity-area usage. Then, allocate the total activity costs to each product line based on their activity-area usage. Finally, subtract the allocated support costs from the revenues to determine the profitability.
3. New insights from ABC system:
The ABC system provides a more accurate and detailed view of the costs associated with each product line. It allows FS managers to identify the activities that contribute the most to the total support costs and analyze the profitability of each product line based on these cost drivers. This insight helps in making informed decisions regarding product line management and pricing strategies.
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If the buyer has a clear and unambiguous description or specification and wants to find out which supplier can deliver the best value when and where needed, he or she will typically issue a:
Final answer:
A buyer looking for the best supplier value for a product or service with a clear description would issue an RFP. To counter asymmetric information and imperfect information, sellers can use warranties, certifications, and customer testimonials to reassure potential buyers.
Explanation:
When a buyer has a clear and unambiguous description or specification and is looking to find a supplier that can deliver the best value when and where needed, they would typically issue a Request for Proposal (RFP). This document invites suppliers to bid on supplying goods or services and usually includes a detailed description of requirements, criteria for selection, and how the buyer will evaluate bids.
To address asymmetric information, a situation where one party has more information about the quality of the item for sale than the other, sellers might provide warranties, seek certifications, gather customer testimonials, or offer free trials to reassure buyers. These actions can reduce the uncertainty caused by imperfect information, where the qualities of the product or service are not fully known by the buyer or the seller.
Assuming periodic inventory procedure, what effect would an understatement of ending inventory have on the different items on the financial statements?
Answer:
The understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
Explanation:
The relationship between the elements of inventory in a financial statement is as shown below,
Opening balance + purchases - cost of goods sold = closing balance
As such, the understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
The understatement of the ending inventory will overstate the cost of goods sold and directly it will understate the gross margin and net income.
The periodic inventory system is the method of recording the inventory on a periodic basis. In this case, the inventory is recorded at the end of the financial period only. Thus, the chances of understatement or overstatement of the inventory can be high.
The amount of ending inventory affects the amount of cost of goods sold, gross profit, and net income. When the ending inventory is understated that is the amount is written less than the actual amount then it will show the higher cost of goods sold, lower gross margin, and lower net income.
These changes would be seen in the trading, and profit and loss financial statement.
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10. Inflation and unemployment Suppose that the government believes the economy is not producing goods and services at its optimal level. In an attempt to stimulate the economy, the government increases the quantity of money in the economy by printing more money.
Answer: Increase in money in circulation will increase Demand and Inflation will go up which will eventually lead to lower levels of unemployment in the short term.
Explanation: Governments through out the world Implements certain policies which may be a short term or long term policy to control or regulate the Economy. Most of the policy is to ensure that the Economy runs in an equilibrium,which means Demand will be similar to supply etc.
When the volume of money is Increased,it will lead to increase Demand for goods and services which will cause inflation to rise and unemployment rate will reduce.
Consider the market for 7-eleven slurpees. In a market economy only those consumers who are willing and able to pay for Slurpees get Slurpees, is this fair? What about the market for health care?
Answer:
When we take Slurpees, these are labelled under luxury. This is not the basic need of any human being to drink Slurpees in order to quench his or her thirst. This can't be categorized as a basic, primary or biological need. Water is considered very for for this purpose and we even can't survive biologically without water, whereas, we can very happily without Slurpees. More specifically, we can live definite more happy and healthy without drinking these carbonated drinks which are not good for any human's health, and this facts have been proven by medical science in much finer details. These drinks, sometimes, can kill humans as well, damaging their stomach directly. If this was the basic need, then organizations might have offered it instead of giving employees salary and monetary rewards.
Assume December 31 is a Wednesday. Weld-Rite Company’s wages are paid every Friday, and the weekly payroll (for five days) amounts to $6,000. To record the correct amount of expense for December, Weld-Rite makes the following entry on December 31: __________________________.
Answer:
Please see explanation
Explanation:
The following journal entry shall be recorded in the accounts of Weld-Rite Company in respect of salaries expense to be accrued as at December 31:
Debit Credit
Salaries expense $3,600
(6,000/5*3)
Salaries payable $3,600
Weld-Rite needs to record the wages incurred in December which accounts for $3,600, regardless of the actual payment date. This is done by dividing the weekly wages by 5 (to get daily wages) and then multiplying by the number of workdays in December.
Explanation:The business subject of this question is the journal entry of expenses for payroll. In accrual accounting, Weld-Rite needs to recognize the expenses as they are incurred, not when they are paid. Given that December 31 is a Wednesday and assuming Weld-Rite's workweek begins on Monday, the company had incurred three workdays' worth of wages by the end of December. To calculate the correct amount to record on December 31:
First, find the daily payroll by dividing the weekly amount by 5. In this case, $6,000 / 5 = $1,200 per day.Then, multiply the daily amount by the three workdays in December. In this case, $1,200 x 3 = $3,600.
Then, the journal entry on December 31 will be:
Debit Wage Expense $3,600
Credit Wage Payable $3,600
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Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. Lucia's labor The $400 Kenji spends to purchase tax services from A-Plus Accountants The $325 per week Kenji earns working for Spotless Car Wash
Answer:
The 325 per week kenji earns working for spotless car wash.
The 400 kenji spends to purchase tax services from A- plus accountants.
Explanation:
This are examples of the way households interact with business firm and this interaction can be inward flow or outward flow depending on the need.
House hold and business firms are the two basic types of economic agents in the market economy.
This interaction can be documented in a flow diagram to measure flow of money, goods and services.
The elements that represent a flow from a firm to a household include:
the $425 per week Andrew earns working for Spotless Car Wash
the car wash Beth receives
The Household income flow is a diagram that express the circular flow of income from a firm to the household in the economy.
Hence, the elements that represent a flow from a firm to a household include the $425 per week Andrew earns working for Spotless Car Wash and the car wash Beth receives.
Therefore, the Option A and D is correct.
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The level of industry demand: a. has little effect on competition in the industry. b. is one of the determinants of the intensity of rivalry in the industry. c. increases when customers exit a marketplace. d. does not impact the market share that established companies hold. e. decreases the rivalry among established companies, when in decline.
Answer: b. is one of the determinants of the intensity of rivalry in the industry.
Explanation: intensity of rivalry occurs between competitors in an industry and it is the extent to which firms in the industry impact one another to either maximize their profit potential or limit it. Competing firms in most industries are mutually dependent in such a way that any move by any one firm is noticeable by another. As such, rivals harness various strategies based on price, product, advertising etc. to boost their profit while limiting profitability of others. These strategies often increase the cost of operation leading lower supply or reduce the price of
products leading to greater demand. Consequently, the intensity of rivalry among firms in an industry is an integral part of determining the condition a firm is in for doing business.