Answer: Tax revenue,highly inelastic,modify,stop buying
Explanation:
The government might levy an excise tax on a product if it wants to collect tax revenue from the purchase of that particular good or service. The government would prefer to tax goods with a highly inelastic demand. The government might also tax a product to incentivize consumers to modify their behavior. If taxes are too high on a certain good or service, many consumers will stop buying that good.
Final answer:
The government uses excise taxes to generate revenue from goods with inelastic demand and to discourage consumption of certain products. If the tax is too high, consumers might stop buying the taxed goods, especially if their demand is elastic. Examples of such taxed goods include gasoline, cigarettes, and alcohol.
Explanation:
The government might levy an excise tax on a product if it wants to collect revenue from the purchase of that particular good or service. The government would prefer to tax goods with a inelastic demand, meaning the demand for the product does not change significantly with an increase in price. Governments might also tax a product to incentivize consumers to reduce consumption of harmful or less desirable goods. If taxes are too high on a certain good or service, many consumers will avoid purchasing that good, especially if the demand for the product is elastic.
Examples of goods that are commonly taxed include gasoline, cigarettes, and alcohol. These are often referred to as 'sin taxes.' Taxes on these goods help to generate revenue because their inelastic demand ensures continued purchase despite the increased cost. Still, the primary purpose may also be to discourage their use due to the negative impacts they have on health and the environment.
Moreover, an excise tax introduces a difference between the price paid by consumers and the price received by sellers. This is known as the tax incidence, which can fall more heavily on either the consumer or the seller, depending on the relative elasticities of demand and supply for the taxed good. Goods with inelastic demand see consumers bearing a larger share of the tax burden.
g the three types of unemployment are A. voluntary, structural, and cyclical unemployment. B. frictional, structural, and cyclical unemploment. C. natural, unnatural, and cyclical unemployment. D. full, frictional, and involuntary unemployment. The type of unemployment most likely to result in hardship for the people who are unemployed is A. structural because this type of unemployment requires retraining to acquire new job skills. B. cyclical and frictional because these two types are closely related. C. frictional because people need to find a new job in the labor market. D. cyclical because people have to wait for a recession to end.
Answer: The three main types of unemployment are cyclical, frictional and structural unemployment. B
Explanation:
B. Cyclical and frictional are both related as they tend to cause more hardship because of its severity.
Who investigates complaints of the Holden Act and takes remedial action as required by law? The Department of Housing and Urban Development The Consumer Protection Office The California Secretary of Business, Transportation and Housing The Department of Commerce
Answer:
The Department of Housing and Urban Development
Explanation:
The Holden act or the California Housing Financial Discrimination Act of 1977, states that financial institutions cannot discriminate against people applying for loans or financial assistance, for reasons such as; race, color, ethnicity and religion.
The Holden act is enforced by the Department of Housing and Urban Development.
A city will serve as a conduit for federal grant money, which is sent to the city by the state government and must be remitted to various not-for-profit organizations that will use the money. The ultimate allocation of the money is decided by the state government. Which of the following terms describes the nature of this grant?(A) Agency grant(B) Fiduciary grant(C) Pass-through grant(D) Partial Grant
Answer:
(C) Pass-through grant
Explanation:
A pass-through grant occurs when a recipient of a grant is allowed by the government to provide funding to other recipients. Funds are received and passed along to other recipients.
The party that receives funding from the pass-through entity is called the subrecipient.
This usually occurs when government lacks the structure to effectively push grant initiatives.
In this instance when states provide funds to the city for onward delivery to not for profit organisations, the city is acting as a pass-through entity.
Which of the following statements represent a weakness or limitation of ratio analysis? Check all that apply. Ratio analysis is conducted using benchmarking techniques. A firm’s ratios can lead to conflicting conclusions—some ratios might be ""good"" and some ""bad."" Inflation can distort balance sheet data.
Answer:
The applicable answers are:
A firm's ratio can lead to conflicting conclusions
Inflation can distort balance sheet data
Explanation:
The fact that ratio analysis is conducted using bench-marking techniques implies that a business is compared with a best-in-class company that the business can learn best practices,hence that is on a positive note.
Secondly,the issue around conflicting ratio conclusions is a valid weakness ratio analysis. For example having higher than industry average current ratio is a good indicator of liquidity and could also mean the inventory that accounts for a larger percentage of current assets is slow moving
Inflation is another valid limitation as $1 last year is not necessarily the same this year.
The two statements that represent weaknesses or limitations of ratio analysis are: B. A firm's ratios can lead to conflicting conclusions and C. Inflation can distort balance sheet data.
Using ratio analysis aids the quantitative analysis of the efficiency, liquidity, and profitability of a firm or an industry. Bench-marking techniques include the use of ratios. Therefore, this is an advantage rather than a weakness.
The weaknesses of ratio analysis include:
reaching conflicting conclusions when ratios are used in isolation.ratio analysis is calculated with balance sheet data, which do not take into account the time-value of money.Thus, the weaknesses of ratio analysis show that the information obtained may be out of sorts by the time the ratio analysis is being performed.
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Simon lost $4,300 gambling this year on a trip to Las Vegas. In addition, he paid $2,650 to his broker for managing his $265,000 portfolio, and $1,030 to his accountant for preparing his tax return. In addition, Simon incurred $3,160 in transportation costs commuting back and forth from his home to his employer's office, which were not reimbursed. Calculate the amount of these expenses that Simon is able to deduct (assuming he itemizes his deductions).
Answer:
Assuming Simon’s AGI is $40,000.
Gambling losses are only deductible to the extent of gambling winnings. Thus,Simon cannot deduct any of the $4,300 gambling losses. The $3,160 transportation expenses are also nondeductible as they are deemed to be personal expenses. The $2,650 broker management fees are deductible as investment fees (miscellaneous itemized deductions subject to the 2% AGI floor), and the $1,030 tax return fees are also deductible as miscellaneous itemized deductions subject to the 2% AGI floor.
Thus, $2,650 + $1,030 – (2% x $40,000 AGI) = $2,880 deduction
Eric has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontransferable ticket. Now Ginny, whom Eric has wanted to date for a long time, asks him to a concert. Eric would prefer to go to the concert with Ginny and forgo the play, but he doesn't want to waste the $50 he spent on the play ticket.
From the perspective of an economist, if Eric decides to go to the concert with Ginny, what has he just done?
a.Made a choice that was not optimal
b.Correctly ignored a sunk cost
c.Incorrectly allowed a sunk cost to influence his decision
Answer:
Correctly ignored a sunk cost.
Explanation:
In economics a sunk cost is one that an individual has already paid for and cannot recover. For example when payment is made for rent it is no longer recoverable.
In this instance Eric has already bought a $50 ticket that is nonrefundable, nonexchangeable, and nontransferable. This is a sunk cost.
Eric wants to go to the concert with Ginny who he wanted to date for a long time.
He will correctly ignore the sunk cost of going to the play because any more time spent on the play will not help recover the $50 already spent.
What are the advantages and disadvantages of using debt in a firm's capital structure? Advantage/Disadvantage a. A distribution of stock to shareholders can be a nontaxable stock dividend while a distribution of a debt usually results in dividend income. b. Interest is deductible (subject to limitations) by the payor while a dividend payment is not deductible. c. Repayment of an indebtedness generally is treated as a return of capital while a stock redemption generally is treated as a dividend. d. Stock can be received tax-free as part of a corporate formation and/or reorganization while the receipt of debt usually is treated as boot. e. Worthless stock results in an ordinary loss under Sec. 1244 while a worthless debt instrument generally results in a capital loss.
Answer:
a. Disadvantage
b. Advantage
c. Advantage
d. Disadvantage
e. Disadvantage
Explanation:
Debt refers to a mode of raising long term finance whereby the borrower, usually a corporate agrees to repay periodic interest and at the same time principal repayment upon maturity.
Debt is an obligation whereby the interest obligation must be met by the borrower irrespective of it's profits.
One advantage of debt financing being, interest paid on debentures and bonds is tax deductible.
Issue of common stock meanwhile confers members with voting rights and ownership rights. Stockholders are paid dividend and the company pays their principal lastly, after having met all other obligations.
Issue of common stocks lead to dilution of control and at the same time, dividend unlike interest is not tax deductible.
Under the IMA's standards of ethical practice, an accounting professional can consider informing authorities or individuals not employed by the organization when an ethical dilemma occurs about an accounting or financial reporting matter that remains unresolved if he/she:A. Believes there is a clear violation of the lawB. Contacts his/her immediate superior who says to forget about the matterC. Informs the external auditors who tell him/her to inform the appropriate authoritiesD. Believes there has been an ethical violation
Answer: Believes there has been an ethical violation
Explanation: IMA's overarching ethical principles include: Honesty, Fairness, Objectivity, and Responsibility. Members shall act in accordance with these principles and shall encourage others within their organizations to adhere to them. A member's failure to comply with the following standards may result in disciplinary action.
Concord Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,820 kits was prepared for the year. Fixed operating expenses account for 73% of total operating expenses at this level of sales.
Sales $87,000
Cost of goods sold (all variable) 52,200
Gross margin 34,800
Operating expenses 30,450
Operating income $ 4,350
Assume that during the year Concord Sports actually sold 1,827 volleyball kits during the year at a price of $42 per kit.
Calculate the sales price variance.
Answer:
Sales price variance= $10,596.6 unfavorable
Explanation:
Giving the following information:
The following static budget based on sales of 1,820 kits was prepared for the year.
Sales $87,000
Assume that Concord Sports sold 1,827 volleyball kits during the year for $42 per kit.
First, we need to calculate the standard selling price:
Standard selling price= 87,000/1,820= $47.80
The sales price variance is calculated as follow:
Sales price variance= actual sales revenue - actual sales at the standard price
Sales price variance= (1,827*42) - (1,827*47.8)= $10,596.6 unfavorable
The sales price variance for Concord Sports, based on actual sales of 1,827 kits at $42 per kit, is -$10,590.60. This negative variance indicates that the actual selling price was lower than the budgeted price.
The student asked: 'Calculate the sales price variance for Concord Sports, given actual sales of 1,827 kits at a price of $42 per kit.'
To calculate the sales price variance, we use the following formula: Sales Price Variance = (Actual Selling Price - Budgeted Selling Price) x Actual Quantity Sold.
Here's the step-by-step calculation:
Budgeted Selling Price per Kit = Total Budgeted Sales / Budgeted Quantity Sold = $87,000 / 1,820 kits = $47.80 per kit.Actual Selling Price per Kit = $42.Actual Quantity Sold = 1,827 kits.Sales Price Variance = (Actual Selling Price - Budgeted Selling Price) x Actual Quantity Sold = ($42 - $47.80) x 1,827 kits = (-$5.80) x 1,827 = -$10,590.60.Sales Price Variance is therefore -$10,590.60.
Apply strategies for self-improvement based on individual strengths and needs. I will score 25 goals in the soccer game. a. Yesb. No
Answer:
b. No
Explanation:
This is not an effective strategy for self-improvement. In this sentence, the author tells us that he believes he will be able to score 25 goals in a soccer game. This is extremely unlikely even for the best soccer players in the world. Therefore, the goal is unrealistic. By creating unrealistic or unachievable goals, we only make it more difficult for us to succeed, and the failiure that will inevitably follow can be damaging to our confidence. Therefore, when establishing goals, it is important that we are realistic.
In the context of scoring 25 goals in a soccer game, self-improvement strategies should be focused on enhancing existing skills and addressing areas of need, keeping the goal realistic. Practice, feedback, and self-reflection can aid in achieving this. The process requires patience and commitment.
Explanation:The approach of self-improvement based on individual strengths and needs involves setting realistic goals and continually assessing progress on these goals. In the context of your goal to score 25 goals in a soccer game, it is critical to evaluate this target against your current abilities and the opportunities you will have in the game. The target should be challenging but realistic.
Improvement strategies might focus on enhancing your current strengths, like speed or accuracy, and addressing areas of need, such as endurance or team coordination. These strategies can include deliberate practice, receiving feedback, and self-reflection. Whatever the strategy, remember that self-improvement is a gradual and ongoing process that requires patience and commitment.
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wanita Enterprises sells computer flash drives for $ 3.44 per unit. Unit variable cost is $ 0.05. The breakeven point in units is 3 comma 600, and expected sales in units are 4 comma 300. What is the margin of safety in dollars? A. $ 35 B. $ 12 comma 384 C. $ 2 comma 373 D. $ 2 comma 408
Answer:
D. $ 2 comma 408
Explanation:
Margin of safety is the contribution over break-even point which make the profit for the business. It is the actual margin from which the business is safe from loss.
Sales Price = $3.44 per unit
Variable cost = 0.05 per unit
Break-even point = 3,600 per unit
Expected sale = 4,300 per unit
Margin of safety sales volume = Total Sales - Break-even point
Margin of safety sales volume = 4,300 - 3,600 = 700 units
Margin of Safety in dollars = 700 units x 3.44 = $2,408
4. Suppose an acquiring firm pays $100 million for a target firm and the target's assets have a book value of $70 million and an estimated replacement value of $80 million. What amount would be allocated to the acquiring firm's goodwill account?
Answer:
The question is missing below options:
A. $0 million B. $20 million C. $30 million D. $70 million E. $80 million
The correct option is B,$20 million
Explanation:
Goodwill =Purchase consideration less fair value of net assets acquired
Purchase consideration is $100 million
Fair value of net assets is $80 million, the replacement value
Goodwill=$100 million -$80 million
Goodwill=$20 million
Provided the replacement value was not given, the book value of $70 million would have been a proxy for the fair value,hence giving a goodwill of $30 million($100 million less $70 million)
Option D is wrong because goodwill is not the same as book value of assets
Option E is wrong because the replacement value of asset is goodwill.
Lisa Jameson has two job offers. One is from Pembroke Boats, a boat manufacturer that employs 200 people in a small Ohio town. Pembroke does not have an IT department and wants her to create one. The job position is called information coordinator, but she would be the only IT person. The other offer, which pays about $7,500 more annually, is from Albemarle Express, a nationwide trucking firm located in Detroit. At Albemarle Express, Lisa would be a programmer-analyst, with the promise that if she does well in her position, she eventually will move into a systems analyst position and work on new systems development. Lisa has heard a rumor that another company might acquire Albemarle Express, but that rumor has occurred before and nothing has ever happened. What should Lisa do, and why?
Answer:I personally think Lisa should accept the offer from Albemarle Express as a Programmer Analyst because annual pay is more in this offer. There is a high chance of career growth than starting from scratch and trying to make your way up like in the first offer.
Explanation:The first offer would be too demanding and it should be the one which has more pay than the second offer , considering the fact that Lisa would be creating the whole department from scratch and working alone. This second opportunity is the best more salary than the first offer , less demanding but with a higher opportunity for growth.
Lisa Jameson has to choose between a position at Pembroke Boats, offering her to lead an entire IT department, and a higher-paying role at Albemarle Express with career growth but potential job security risk. She'll need to account for personal preferences, professional goals, and the two companies' environments to make the best choice for her career path.
Explanation:Lisa Jameson is considering two job offers with different roles and benefits. The first offer is from Pembroke Boats, which gives her the opportunity to create an IT department and operate as an information coordinator. Although this might provide her with more responsibility and control, it comes with the challenge of establishing new systems alone. The second offer from Albemarle Express is for a programmer-analyst position, with a higher salary and a clear path for career advancement to systems analyst, but comes with the uncertainty of potential company acquisition. When making her decision, Lisa must weigh factors such as salary, career growth, job security, work environment, and personal career goals.
Moreover, Lisa should also consider where she would prefer to live, the company culture, and whether she is looking for a start-up like experience at Pembroke Boats or a more structured role at Albemarle Express. This decision can significantly affect her career trajectory and job satisfaction. Seeking advice from current or former employees and mentors in the field could also provide valuable insights. Ultimately, it is her personal and professional priorities that will guide her decision.
Dome Metals has credit sales of $180,000yearly with credit terms of net 60 days, which is also the average collection period. Dome does not offer a discount for early payment, so its customers take the full 60 dys to pay. What is the average receivables balance? Receivables turnover?
Answer:
The average receivables balance is $29,589
The Receivables turnover is 6.08 times
Explanation:
Dome Metals has credit sales of $180,000 yearly and the average collection period of 60 days.
The average collection period = 365 days/Receivables turnover ratio = (365 days x average account receivables)/Credit Sales
Average account receivables = (The average collection period x Credit Sales)/365 = (60 x $180,000)/365 = $29,589
Receivables turnover ratio= 365/The average collection period = 365/60 = 6.08 times
The average receivables balance for Dome Metals is $29,605.26, and the receivables turnover is 6.08.
Explanation:In this example, Dome Metals has annual credit sales of $180,000 and an average collection period of 60 days. To determine the average receivables balance, divide the annual credit sales by the turnover rate (365/60 = 6.08). So, $180,000/6.08 results in an average receivables balance of $29,605.26.
Next, to compute the receivables turnover, we take the annual credit sales and divide them by the average accounts receivable. This means that Dome Metals' receivables turnover is 6.08.
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The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation. Working the normal two shifts of 40 hours each per week, the BBBC production process usually produces 2,500 uniforms per week at a standard cost of $120 each. Seventy employees work the rst shift and 30 employees work the second. The contract price is $200 per uniform. Because of the urgent need, BBBC is authorized to use around-the-clock production, 6 days per week. When each of the two shifts works 72 hours per week, production increases to 4,000 uniforms per week but at a cost of $144 each.
a. Did the multifactor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?
b. Did the labor productivity ratio increase, decrease, or lemain tire same? If it changed, by what percentage did it change?
c. Did weekly prots increase, decrease, or remain the same?
Answer:
A. Multifactor productivity
Original Value of output 2500 un. x $200/un. = $500,000 Value of input 2500 un x $120/un. = $300,000 Multi-factor productivity $500,000/$300,000 = 1.67 Overtime Value of output 4000 un. x $200/un. = $800,000 Value of input 4000 un. x $144/un. = $576,000 Multi-factor productivity $800,000/$576,000 = 1.39 Multi-factor productivity (1.67 – 1.39) / 1.67 = 16.8% decrease
B. LABOR PRODUCTIVITY
Original Value of output 2500 un. x $200/un. = $500,000 Input = (100 people x 40 hr/person) = 4000 hours Labor productivity $500,000/4000 hr = $125/hr Overtime Value of output 4000 un. x $200/un. = $800,000 Input = (100 people x 72 hr/person) = 7200 hours Labor productivity $800,000/7200 hr = $111/hr Labor productivity ($125/hr – $111/hr) / $125/hr = 11.1% decrease
C.GROSS PROFITS
Original $500,000 - $300,000 = $200,000 Overtime $800,000 - $576,000 = $224,000
$24,000 increase
The multifactor productivity ratio increased by 20.8%. The labor productivity ratio decreased by 8.6%. Weekly profits increased with the new production process.
Explanation:a. The multifactor productivity ratio increased. The original production process had a multifactor productivity ratio of 2500 uniforms / (70 employees * 40 hours) + 2500 uniforms / (30 employees * 40 hours) = 2.381 units per labor-hour. With around-the-clock production and 72 hours per week for each shift, the new production process has a multifactor productivity ratio of 4000 uniforms / (70 employees * 72 hours) + 4000 uniforms / (30 employees * 72 hours) = 2.876 units per labor-hour. The increase can be calculated as (2.876 - 2.381) / 2.381 * 100% = 20.8%.
b. The labor productivity ratio increased. The original production process had a labor productivity ratio of 2500 uniforms / (70 employees * 40 hours) = 0.893 units per labor-hour. With around-the-clock production and 72 hours per week for each shift, the new production process has a labor productivity ratio of 4000 uniforms / (70 employees * 72 hours) = 0.816 units per labor-hour. The increase can be calculated as (0.816 - 0.893) / 0.893 * 100% = -8.6%.
c. Weekly profits increased. The original production process had a profit of ($200 - $120) * 2500 uniforms = $200,000. With the new production process, the profit per uniform decreases to
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According to Jamie Dimon, "Most leaders I know are working to build something of which they can be proud. They usually work hard, not because they must but because they want to do so." What specific message on leadership is embedded in this statement? Multiple Choice Leaders should routinely deal with organizational crisis Leaders should be problem solvers Leaders should promote the strengths of the business that they are passionate about Leaders should resolve the weakness of the business that they are in charge of
Answer:
Leaders should promote the strengths of the business they are passionate about
Explanation:
Leadership refers to a process whereby an individual induces others into a desirable course of action which is directed at fulfillment of organizational goals and objectives.
Some of the basic necessary qualities a leader must possess include, confidence, honesty and integrity, leading by example, diligence etc.
The given statement points towards two leadership traits. First being creativity, whereby the leader aims to create something unique. Second being, diligence.
The statement conveys the fact that leaders should strengthen the business they belong to via creation of something worth creating from the perspective of business.
Jamie Dimon's statement emphasizes that effective leaders are motivated by their passion and desire to create something they are proud of, signifying that leaders should promote the strengths of the business that align with their passions.
According to Jamie Dimon, “Most leaders I know are working to build something of which they can be proud. They usually work hard, not because they must but because they want to do so.” Embedded in this statement is a message on leadership that highlights a leader's inner motivation driven by passion and pride, pointing directly towards the option that “Leaders should promote the strengths of the business that they are passionate about.”
This emphasis aligns with the broader understanding of leadership that involves not only guiding teams and organizations towards goals and objectives but doing so with a sense of purpose and commitment that transcends mere obligation. Leaders who are passionate about their work are more likely to inspire and motivate others, create a positive work environment, and ultimately lead their organizations to achieve greater success.
The common stock of Securetech Corporation consistently sells at a market price of 20 times earnings, i.e., at a p/e ratio of 20. What would be the most likely effect of a 10 cent increase in Securetech's basic EPS
Answer:An increase in market price of approximately $2 per share.
Explanation: A common stock is the stock of a company which entitles the owner certain right to ownership of a company, such as the ability to vote during annual general meetings and are also known to be popular to the population more than other types of stocks.
A TEN(10) PERCENT RISE IN SECURETECH'S BASIC EARNINGS PER SHARE WILL MOST LIKELY LEAD TO APPROXIMATELY $2 RISE IN THE MARKET PRICE OF
SECURETECH'S BASIC EARNINGS .
Mathematical calculations
10% increase= (10÷100)*20dollars
= 0.1*$20
=$2 increase in earning per share.
For $100 each, Helen agrees with Troy Tech to knit 12 sweaters for the soccer team in their school colors with their names on the front and "Go Tech" on the back. After Helen has almost finished the last sweater, Troy Tech decides it should spend the money on repairs to the locker room instead of on the sweaters. Does Helen's contract have to be in writing for her to enforce it?
Answer:
No.This is because the contract is on specially manufactured sweaters which both parties agreed on.
Explanation:
A contract can be described as a spoken or written agreement that is legally binding between two or more parties relating to sales, rendering of services, tenancy, employment, and among others. The aim of a contract is to ensure that each party to the contact performs his duty and their rights are protected.
From the definition above, it obvious that a contract can be spoken or written. Therefore, Helen's contract does not have to be in writing for her to enforce it since they both agreed on the agreed to make specially manufactured sweaters.
At the end of October, Cranston Bottling's mixing department had "Total costs to account for" of $ 739 comma 731. Of this amount, $ 271 comma 596 related to direct materials costs, while the remainder related to conversion costs. The department had 52 comma 230 total equivalent units of direct materials and 45 comma 450 total equivalent units of conversion costs for the month.
Answer:
The question is not complete, below is the complete question:
Compute the cost per equivalent unit (processing costing step 4)
At the end of October, Cranston Bottling’s mixing department had “Total cost to account for” of $739,731. Of this amount, $271,596 related to direct material costs, while the remainder related to conversion costs. The department had 52,230 total equivalent units of direct materials and 45,450 total equivalent units of conversion costs for the month.
Compute the cost per equivalent unit for direct materials and the cost per equivalent unit for conversion costs.
Answers:
a. cost per equivalent unit for direct material = $5.2
b cost per equivalent unit for conversion costs = $10.3
Explanation:
To calculate the cost per unit of a material, we have to determine the total costs, the total units produced, then divide the total costs by the total units.
In this example, there are two costs of interest; cost for direct materials and cost for conversion.
Total cost = cost of direct material + conversion cost = $739,731
cost for direct material = $271,596
∴ conversion cost = Total cost - cost of direct material
= 739,731 - 271,596 = $468,135
Next, we are told the units for each of the costs;
total unit of Direct materials cost= 52,230
total unit of conversion cost = 45,450
Finally to get the cost per equivalent unit, we will divide the total costs each by their respective total units;
cost per equivalent unit for direct material = cost for direct material ÷ total units of direct material cost
= 271,596 ÷ 52230 = $5.2
cost per equivalent for conversion cost = total conversion cost ÷ total units of conversion cost
= 468,135 ÷ 45,450 = $10.3
Pop Evil Inc.’s net income for the most recent year was $16,481. The tax rate was 21 percent. The firm paid $3,681 in total interest expense and deducted $4,385 in depreciation expense. What was the cash coverage ratio for the year? (
Answer:
7.86
Explanation:
Given,
Net income = $16,481
Tax rate = 21 %
interest expense = $3,681
Depreciation expense = $4,385
Cash Coverage ratio =[tex]\dfrac{EBIT+ Non-cash Expense}{interest expense}[/tex]
EBIT = Expense before tax
Cash Coverage ratio =[tex]\dfrac{\dfrac{16,481}{1-0.21}+ 4385+3681}{3681}[/tex]
Cash Coverage ratio =[tex]\dfrac{28928.025}{3681}[/tex]
Cash Coverage ratio =7.86
Hence, the cash coverage ratio is equal to 7.86.
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other than home office expenses, a total of $5,600. The following home-related office under the actual expense method for calculating home office expenses other work-related tasks. Her business expenses, expenses have been allocated to her home
Real property taxes $ 1,600
Interest on home mortgage $ 5,100
Operating expenses of home $800
Depreciation $1,600
Also, assume that not counting the sole proprietorship, Rita's AGl is $60,000
Assume Rita's consulting business generated $13,000 in gross income for the current year Further, assume actual expense method for computing her home office expense deduction.
Answer:
a) $7,400
b)$60,000
Explanation:
First, we need to complete the question
a) What is Rita's home office deduction for the current year?
b) What is Rita's AGI for the year?
Solution
a) Rita's Home Office Deduction for the Current Year
Description Amount ($)
Gross Income 13,000
Subtract: Her Business Expenses (5,600)
The balance 7,400
Subtract: Expenses under 1st Tier (6,700)
(Interest 5,100 + taxes 1,600)
Balance 700
Subtract: Expenses unde 2nd Tier (700)
($800 Operating Expernses before limit)
Balance 0
Subtract: Expenses under 3rd Tier (0)
1,600 Depreciation before limit
Net income from Rita's Business 0
The Deduction allowed Rita is $7,400 a totla of the home office expenses and the home operating expenses
Note that there was no expense subtracted for the Tier 3 expenses this is because Rita's income had reduced to $0 and there was nothing to subtract from
B) What is Rita's AGI for the year?
The AGI is the Rita's reported AGI of $60,000 + $0 which is the net calculated income from her business. So her AGI remains $60,000.
Final answer:
To calculate Rita's home office expense deduction, use the actual expense method by calculating the total home-related office expenses and the percentage of the home office area in relation to the total home area.
Explanation:
Rita can calculate her home office expense deduction using the actual expense method. Here are the steps:
Calculate the total home-related office expenses: real property taxes ($1,600) + interest on home mortgage ($5,100) + operating expenses of home ($800) + depreciation ($1,600) = $9,100.Calculate the percentage of the home office in relation to the total area of the home: 500 sq ft / total home area = 500 sq ft / (assumed total home area).Multiply the percentage from step 2 by the total home-related office expenses from step 1: (percentage from step 2) x (total home-related office expenses from step 1) = (percentage from step 2) x $9,100.The resulting amount is the home office expense deduction that Rita can claim.For Rita's specific case, the assumed total home area is not provided, so the calculation cannot be completed.
Suppose the cross-price elasticity between demand for Chipotle burritos and the price of Qdoba burritos is 0.8. If Qdoba increases the price of its burritos by 10%: Chipotle will sell 8% more burritos. We cannot tell what will happen to Chipotle, but Qdoba will sell 8% fewer burritos. Chipotle will sell s8% fewer burritos. Chipotle will sell 10% more burritos.
The given cross-price elasticity signifies that Qdoba and Chipotle burritos are substitute goods. Thus, when Qdoba burritos' price increases by 10%, Chipotle will likely sell 8% more burritos.
Explanation:In economic terms, the cross-price elasticity of demand measures how the quantity demanded of one good responds to a change in the price of another good. In this case, the cross-price elasticity between the demand for Chipotle burritos and the price of Qdoba burritos is 0.8. This means when the price of Qdoba burritos increases by 10%, the demand for Chipotle burritos increases by 8%. This is because these two goods are substitutes - when the price of Qdoba burrito increases, consumers switch to Chipotle burritos because it is relatively cheaper.
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After Qdoba increases the price of its burritos by 10%, and given that the cross-price elasticity between Chipotle and Qdoba is 0.8, Chipotle will sell 8% more burritos, as calculated using the cross-price elasticity formula.
The student's question involves the concept of cross-price elasticity of demand, which measures the responsiveness of the quantity demanded for one good when the price of another good changes. In this particular case, Chipotle and Qdoba are substitute goods, which means they have a positive cross-price elasticity. If the cross-price elasticity between demand for Chipotle burritos and the price of Qdoba burritos is 0.8 and Qdoba increases its prices by 10%, we can use the formula:
Cross-price elasticity of demand = (% change in quantity demanded for Good A) / (% change in price of Good B)
By rearranging the formula: (% change in quantity demanded for Chipotle burritos) = (cross-price elasticity) imes (% change in price of Qdoba burritos)
Plug in the values: (% change in quantity demanded for Chipotle burritos) = 0.8 imes 10% = 8%
Therefore, Chipotle will sell 8% more burritos as a result of Qdoba's 10% price increase.
3. Effects of rent control Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The quality of rental housing units falls. Nonprice methods of rationing emerge. The future supply of rental housing units increases. Black markets develop.
Answer:
Options A and B is the correct answer
Explanation:
Rent Control Acts create both long-term and short-term problems are created by rent control acts.
The Rent Control Act in the short-run results in a shortage of rental units. However, in the long-run, the impact of these Acts is more serious.
With no change in rent, the incentive for owners to sustain the quality of rental units and thus charge higher rent gets banished.
As to this, they do not maintain their units properly, and the result of this is a decline in the quality of rental units in the long-run.
Secondly, scarcity of rental units gives rise to various non-price rationing methods that owners use to allocate their rental units.
Thus, options A and B is the correct answer.
The common long-run outcomes that result when cities prevent landlords from charging market or commercial rents are A. The quality of rental housing units falls, and B. Non-price methods of rationing emerge.
Rent Controls discourage landlords from buying, building, and maintaining houses that are of the highest quality. Market forces may indeed play against the poor, especially when monopolies develop. It is the responsibility of the government to check monopolistic tendencies in the market. Using Rent Controls to achieve this is counter-productive.
Landlords rent out housing units to make profits. This profit motive is good in a market-driven economy. Fraudulent profiteering should be discouraged. When cities control rents, it does not increase the supply of rental units nor encourage black markets to develop.
Thus, the long-run outcomes when cities prevent landlords from charging market rents through Rent Controls are a reduction in quality and the use of non-price methods for rationing rental units.
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Non-interest bearing notes are initially recorded at______________.a.present value, based on the prevailing interest for loans of this type.b. maturity value because they bear no interest. c. future value, based on the prevailing interest for loans of this typed. historical cost.
Answer: A present value, based on the prevailing interest for loans of this type
Explanation:
A non interest bearing note is a debt for which there is no documented requirement for the borrower to pay the lender any rate of interest. If such a note were to be resold to a third party, the debt would be sold at a discount to its face value, so that the third party purchaser would eventually realize a gain when it was redeemed by the borrower at its face value
g When a company’s resources are valuable, rare, imperfectly imitable, and nonsubstitutable, it has a . Necessary to sustain a competitive advantage, _____ resources are not controlled or possessed by many competing firms.
Answer:
Rare resources
Explanation:
Rare resources are unique resources that is not controlled or possessed by many competing firms. Only a small number of competing companies control it. It usually stands out by being distinctive among the set of future competitors. Rare resources are short in supply and capable of persisting over an extended time, this makes it a source of competitive advantage for a company.
Answer: rare resources
Explanation: rare resources simply defined are resources that are not controlled or possessed by many competing firms in an industry. They are rare by their quality being unique among potential competitors. Competitors have difficulty replicating these resources because they are difficult to imitate, are protected by legal means, or have evolved over time and thus reflects the unique aspects of a business.
Reread the Management Focus on Cemex and then answer the following questions: a) Which theoretical explanation, or explanations, of FDI best explains Cemex’s FDI? b) What is the value that Cemex brings to the host economy? Can you see any potential drawbacks of inward investment by Cemex in an economy?
Complete Question:
Mexico's largest cement manufacturer, Cemex, has become a global powerhouse in the cement and construction industry.It currently controls 60 percent of the cement industry in Mexico (Hill 2009).Cemex's success is a result of a combination of efficient technology such as radio transmitters, satellites, and computer hardware that allow the company to anticipate changes in supply and demand and reduce waste.
Cemex's success is also a result of an attempt to dominate the industry by acquiring and buying out competitors worldwide in order to expand.
Reread the Management Focus on Cemex and then answer the following questions:
a) Which theoretical explanation, or explanations, of FDI best explains Cemex’s FDI?
b) What is the value that Cemex brings to the host economy? Can you see any potential drawbacks of inward investment by Cemex in an economy?
Explanation:
a) I think Cemex's philosophy of internalisation perfectly illustrates that, instead of licensing it took the initiative to penetrate other markets, Cemex has acquired in-house cement firms and has become a global powerhouse. The text book discusses that companies often choose foreign direct investment as a policy to penetrate foreign markets, rather than authorising (Hill 2008). The internalisation principle. The state-of - the-art technologies Cemex employs would not make selling the company's "technological know-how" the best way to protect it (Hill 2009).
b) Cemex, the world's third largest cement firm, has 60% control over the powerhouse in Mexico.
The focus of Cemex is on the efficient production and service of the consumer. Sales receivers, as are consumers, have been paid. Such competitive advantages are the main benefits that Cemex gives to host countries. Cemex acquires companies, and then moves technologies, management and marketing skills to new units and improves their performance. Several purchased businesses were taken back to full production and the work opportunities in the host country were improved.
Final answer:
Cemex's FDI is best explained by the Market Power Theory. Cemex brings value to the host economy through job creation, technology transfer, and increased competition, but there can be potential drawbacks as well.
Explanation:
a) The best theoretical explanation of Cemex's Foreign Direct Investment (FDI) is the Market Power Theory. Cemex's FDI allowed them to gain a competitive advantage over local firms and establish a dominant position in the host economy. By acquiring local cement companies, they were able to control a significant portion of the market and influence prices.
b) The value that Cemex brings to the host economy includes job creation, technology transfer, and increased competition. However, there can also be potential drawbacks such as the exploitation of natural resources, environmental concerns, and negative impacts on local businesses.
Splish Corporation has retained earnings of $707,000 at January 1, 2020. Net income during 2020 was $1,428,500, and cash dividends declared and paid during 2020 totaled $85,000. Prepare a retained earnings statement for the year ended December 31, 2020. (List items that increase retained earnings first.)
Answer:
Explanation:
Statement of retained earning represent the changes in retained earning balance during the year and accumulated beginning balance of the period and Ending balance as well. It deals with all the adjustment in retained earning like net income transfer fro the year, dividend paid during the year etc.
Splish Corporation
Retained Earning Statement
for the year ended December 31, 2020
$
Retained Earning at January 1, 2020 707,000
Less: Cash Dividend paid during 2020 85,000
Add: Net Income for the year 2020 1,428,500
Retained Earning ath December 31 2020 2,050,500
Presented below are two independent cases related to available-for-sale debt investments. Case 1 Case 2 Amortized cost $41,640 $91,800 Fair value 32,220 102,220 Expected credit losses 27,360 83,660 For each case, determine the amount of impairment loss, if any.
Answer:
Case 1 = $9,420
Case 2 = 0
Explanation:
Determining the amount of impairment loss is given below:-
Case 1
Impairment loss = Amortized cost - Fair value
= $41,640 - $32,220
= $9,420
Case 2
Impairment loss = Amortized cost - Fair value
= 91,800 - $102,220
= 0
Since, the fair value is higher than Amortized cost so the value of Impairment loss in case 2 is 0.
The impairment loss is
Case 1 = $9,420 .Case 2 = $0.The calculation is as follows:
Case 1Impairment loss = Amortized cost - Fair value
= $41,640 - $32,220
= $9,420
Case 2Impairment loss = Amortized cost - Fair value
= $91,800 - $102,220
= 0
As the fair value is more than amortized cost therefore the value of Impairment loss in case 2 is 0.
Therefore we can conclude that
The impairment loss is
Case 1 = $9,420 .Case 2 = $0.Learn more: brainly.com/question/16115373
Francis Equipment Co. closes its books regularly on December 31, but at the end of 2017 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions. The information is given below.
1. January cash receipts recorded in the December cash book consisting of:
Cash sales $28,000
Collections on account, for which $360 of cash discounts were given 17,640
$45,640
2.January cash disbursements recorded in the December check register liquidated accounts $22,450
Discounts taken 250
3. The ledger has not been closed for 2017.
4. The amount shown as inventory was determined by physical count on December 31, 2017.
The company uses the periodic method of inventory.
Required:
a. Prepare any entries you consider necessary to correct Francis’s accounts at December 31.
b. To what extent was Francis Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open?
To correct Francis Equipment Co.'s accounts at December 31, necessary adjusting entries need to be made for the cash receipts and disbursements recorded in January.
Explanation:To correct Francis Equipment Co.'s accounts at December 31, we need to make the necessary adjusting entries for the cash receipts and disbursements recorded in January. For the cash receipts, we need to subtract the $360 cash discounts given from the accounts receivable and add it to the cash sales. Thus, the entries wil be -
1. Revenues Debit $ 28,000
To Cash $ 28,000
To reverse the cash sales recorded in December
2. Account receivable Debit $ 18,000
To Sales Discounts $ 360
To Cash $ 17,640
To reverse the collections from customers and sales discounts allowed
3. Cash $ 22,450
Purchase Discounts $ 250
To Accounts payable $ 22,700
To reverse the payments made and discounts availed
4. No entry for inventory
b. Francis Equipment company managed to show a higher retained earnings of $ 28,110
For the cash disbursements, we need to subtract the discounts taken from the accounts payable and add it to the cash disbursements recorded. The effect of holding the cash book open is that it falsely inflates the cash balance, leading to a more favorable balance sheet at December 31.
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Arnold gave land to his son, Bruce. Arnold's basis in the land was $100,000, and its fair market value at the date of the gift was $150,000. Bruce borrowed $130,000 from a bank that he used to improve the property. He sold the property to Della for $360,000. Della paid Bruce $90,000 in cash, assumed his $120,000 mortgage, and agreed to pay $150,000 in two years. Bruce's selling expenses were $10,000. Della is going to pay adequate interest.
Compute the following amounts:
a. Bruce's basis in the land at the time of the sale is $ .................. .
b. When computing his realized gain, what amount does Bruce use as the selling price and as the contract price?
Selling price: $.....................
Contract price: $.....................
c. Bruce's total realized gain on the sale is $...................., but his recognized gain in the year of the sale is $..................
Answer:
Explanation:
a. Bruce's basis in the land at the time of the sale is Arnold's basis+Cost of improvement = 100,000+130,000 = $ 230,000
b. When computing his realized gain, what amount does Bruce use as the selling price and as the contract price?
Selling price is $360,000 (given)
Contract price is $240,000
Contract price = Selling price - Mortgage on loan = 360,000 - 120,000 = $240,000
c. Bruce's total realized gain on the sale is $120,000 but his recognized gain in the year of the sale is $45,000
Total gain = Total selling price - Bruce's adjusted basis - Selling expenses = 360,000 - 230,000 - 10,000 = $120,000
Installment sale gain = Total gain/Contract price * Payments received = (120,000/240,000)*90,000 = $45,000