The publisher should increase the selling price of the book by the amount the variable costs have increased due to the rise in paper costs, in order to maintain the same profit levels. In this case, the selling price should be increased by $0.10.
Explanation:Given that the variable cost per book has increased from $2.00 to $2.10 due to rising paper costs, the publisher must adjust the selling price to maintain the same profit level. If the publisher was previously selling the book at a price 'P,' then the profit per book was (P - $2.00). Now, considering the increased variable cost to maintain the previous profit, the book's selling price should be (P + $0.10), an addition representing the rise in the cost of paper.
So if, for example, the original selling price of the book was $5.00, to start making a profit at the same production level as before the paper cost increase, the publisher should now sell the book for $5.10.
Learn more about Price Adjustment here:https://brainly.com/question/32636900
#SPJ3
Identifying the Parts of the Cost Formula; Calculating Monthly, Quarterly, and Yearly Costs Using a Cost Formula Based on Monthly Data
Gordon Company's controller, Eric Junior, estimated the following formula, based on monthly data, for overhead cost:
Overhead Cost = $150,000 + ($52 x Direct Labor Hours)
Required:
1
2. If next month's budgeted direct labor hours equal 8,000, what is the budgeted overhead cost?
$
3. If next quarter's budgeted direct labor hours equal 23,000, what is the budgeted overhead cost?
$
4. If next year's budgeted direct labor hours equal 99,000, what is the budgeted overhead cost?
$
Answer: attached below
Explanation:
If you deposited $100 now (nequals0)and $200 two years from now (nequals2)in a savings account that pays 10% annual interest, how much would you have at the end of year 10?
Answer:
The correct answer is: "You would have $589 the end of year 10".
Explanation:
The logics of the statement remains in the amount of money remained after 10 years of savings with a 10% annual interest. This means that, after you deposit $100 now (nº 0), on the first current year you would have ended up with $110, although in the second year (nº 2) you would have made a deposit of $200, which means you would have made total earnings of $310, plus the annual interest of $31. After the second year, all subsequent ones wound count on with an annual interest of $31, which means that at end of year 10 you would have reached the amount of $589.
(ps: mark as brainliest, please?!)
Suppose at the beginning of the year, a textbook book sells for €60 in Paris, France, and $60 in New York City, and PPP holds. Over the year, there is an inflation rate of 10 percent in France and no inflation in the United States. What exchange rate would maintain PPP at the end of the year?
Answer:
1 USD= 1.1 Euros
Explanation:
As per Purchasing power parity, the exchange rate between two countries is determined by the rate of inflation prevailing in the two countries.
Purchasing power parity is given by the following equation:
[tex]\frac{FR\ (Euro\ /USD)}{SR\ (Euro\ /USD)}[/tex] = [tex]\frac{(1\ +\ Inf\ in\ France)}{(1\ +\ Inf\ in\ USA)}[/tex]
wherein, FR = 1 year forward rate of Euro per USD
SR= Spot rate of today Euro per USD
Inf= Inflation rate
Price of textbook next year in France= Euro 60 × (1 + .10)= Euro 66
Price of a textbbo in USA= $60
spot rate= 1 $= 1 euro i.e 60$ being equal to 60 euros
Forward exchange rate( Euro per dollar)= 1 × [tex]\frac{(1\ +\ .10)}{(1\ +\ 0)}[/tex]
Forward Exchange rate will be 1 USD= 1.1 Euros
"The 2017 balance sheet of Dream, Inc., showed current assets of $3,190 and current liabilities of $1,480. The 2018 balance sheet showed current assets of $3,240 and current liabilities of $1,670."What was the company's 2018 change in net working capital, or NWC?
Answer:
This problem requires us to calculate Dream Inc change in net working capital, or NWC. The woking capital is the company ability to pay its short term liabilities. In other words it shows how liquid company is.
Working capital is difference between current asset and current liability.
2017 NWC = 3,190 - 1,430 = 1,710 -A
2018 NWC = 3,240 - 1,670 = 1,570-B
Change in NWC = A-B = $ 140
The company net working capital has decreased by 140 dollars.
Explain the following sentence when thinking about the international data Electra bikes is using to run its business. It is never possible to have all of the information required to make a 100 percent accurate prediction. Multiple Choice A. It is never possible to have all of the information required to make a 100 percent accurate prediction because most of the information an organization collects is protected by customers and suppliers. B. It is never possible to have all of the information required to make a 100 percent accurate prediction because achieving perfect information is almost impossible and extremely costly. C. It is never possible to have all of the information required to make a 100 percent accurate prediction because data warehousing and data mining are outdated technologies that are prone to errors and redundancy. D. All of these are correct.
Answer:
B. It is never possible to have all of the information required to make a 100 percent accurate prediction because achieving perfect information is almost impossible and extremely costly.
Explanation:
No further explanation is needed
The answer explains that it is nearly impossible and very costly to achieve perfect information, causing businesses to make decisions with imperfect information despite the vast amounts of data available.
Explanation:The statement that "It is never possible to have all of the information required to make a 100 percent accurate prediction" pertains to the realm of business decision-making, specifically within the context of using international data to run a business like Electra bikes. The correct answer to the student's multiple-choice question is B: It is never possible to have all of the information required to make a 100 percent accurate prediction because achieving perfect information is almost impossible and extremely costly. This concept is linked to the economic principle of imperfect information, where despite the rapid access to data and information, companies and individuals must still make decisions without having all the possible data at hand, partly due to the cost and practicality constraints in obtaining perfect information.
Electra bikes, like any other business, must grapple with this limitation as they analyze international data streams to make forecasts and business decisions. Choices are made based on the best available data, which may include historical trends, market analysis, and other relevant factors. The inherent uncertainty and the expensive nature of data collection mean completely accurate predictions are not feasible. Imperfect information can relate to the quality, timeliness, and comprehensiveness of data, impacting business strategy and outcomes.
GoodTimes, Inc. has asset turnover of 0.5 times, a net profit margin of 10% and average total assets of $100, what is its net income (assuming no unusual items)?
Answer:
$5
Explanation:
Given that,
Asset turnover ratio = 0.5 times
Net profit margin = 10 percent
Average total assets = $100
Asset turnover ratio = sales ÷ Total asset
0.5 = sales ÷ $100
sales = $50
Profit margin = Net income ÷ sales
0.10 = Net income ÷ $50
Net income = $5
Therefore, the net income of GoodTimes, Inc. is $5.
To find the net income of GoodTimes, Inc. with a net profit margin of 10%, an asset turnover of 0.5 times, and average total assets of $100, you calculate total revenue by multiplying asset turnover by average total assets, then multiply the result by net profit margin. Net income is $5.
To calculate the net income of GoodTimes, Inc., we can use the formula:
Net Income = Net Profit Margin x Total Revenue
First, we need to find the Total Revenue. This can be done using the asset turnover ratio:
Asset Turnover = Total Revenue / Average Total Assets
Therefore:
Total Revenue = Asset Turnover x Average Total Assets
Total Revenue = 0.5 times x $100
Total Revenue = $50
Now, using the net profit margin, we calculate net income:
Net Income = Net Profit Margin x Total Revenue
Net Income = 10% x $50
Net Income = 0.10 x $50
Net Income = $5
The net income for GoodTimes, Inc. is $5, assuming no unusual items are present.
Study the following transactions . Journalize the transactions in a two-column journal, using the appropriate number to identify the transactions.
1. Billed customers for fees earned, $55,330.
2. Purchased supplies on account, $2,380.
3. Received cash from customers on account, $52,010.
4. Paid creditors on account, $1,440.
Answer:
Explanation:
The journal entries are given below:
1. Account receivable A/c Dr $55,330
To Fees earned $55,330
(Being the fees earned is recorded)
2. Supplies A/c Dr $2,380
To Account payable A/c $2,380
(Being the supplies is purchased on account)
3. Cash A/c Dr $52,010
To Account receivable A/c $52,010
(Being the cash is received from customers)
4. Account payable A/c Dr $1,440
To Cash A/c $1,440
(Being cash is paid to creditors on account)
a. Attracting large amounts of capital is more difficult for partnerships than for corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests
Answer:
The statement is: True.
Explanation:
Partnerships are organizations that share ownership of two or more people. Corporations, on the other hand, are owned by shareholders who decide how and who will run the business. Partnership owners are individually liable, implying that the owners' assets can be taken away in front of the debt.
Debt or legal responsibility in companies is not individual. Liability is only dealt with at the company level. In reality, partnerships require reorganization when one of the partners is quitting or passing away, something that does not happen to corporations. For these factors, the majority of associations find it difficult to raise significant amounts of funds relative to companies.
Emma is the labor union negotiator. Today she is meeting with management to discuss the new five year contract, including wages and benefits. This example of labor-management negotiations over wages exemplifies which type of bargaining?
A) integrative bargaining
B) arbitrationC) distributive bargaining
D) mediation
E) conciliation
Answer:
Letter C is correct. Distributive bargaining.
Explanation:
Distributive negotiation is a win-lose competitive negotiation strategy. That is, a party only wins if another party loses something. The central objective of this strategy is for a party to earn as much as it can.
Therefore, the ideal alternative to the above question is distributive negotiation, which is used to distribute fixed resources, such as money, assets, resources and labor management negotiations such as wages.
Answer:
To which of the following categories do collective bargaining, mediation, and arbitration belong?
Explanation:
explain why an economy in which airlines charge different passangers different prices for the same flight ticket will not achieve echomic efficiency ?
Answer:
Price discrimination is when a producer charges different prices, to different consumers for the same good or service. Therefore, an airline that charges different prices to different passengers for the same flight is practicing a third degree price discrimination because consumers are charged different prices based on their different demand elasticities.
Economic efficiency is when scarce resources are used in the most efficient way to produce maximum output; it consists of productive efficiency and allocative efficiency. For price discrimination to be possible, the firm must have a certain degree of monopoly power; that is, the firm must be a price maker. Monopolies typically fit into this description as they discriminate by charging consumers with an inelastic demand higher prices; this reults in allocative ineffciency because price is greater than the Marginal Cost (P>MC).
On the other hand price discrimination could increase efficiency; price discrimination aims to convert consumer surplus to producer surplus, thereby increasing the profit of the firm. An increase in profits could be dedicated to investement in research and development; this could see such a firm achieve dynamic efficiency (long-run productive efficiency). Secondly, due to the increased profits and the potential for more profits, output is increased and price moves closer to the MC (Closer to allocative efficiency). In addition, an increase output would mean that the firm is making use of its spare/idle capacity in production, moving output towards optimum. From another perspective, a firm can reap economies of scale through price discrimination; this is because price discrimination leads to an increase in output and a reduction in average cost.
Explanation:
Final answer:
An economy where airlines engage in price discrimination by charging different prices for the same flight ticket to different passengers, such as business travelers and tourists, may not achieve economic efficiency due to the distortion of consumer and producer surplus, creation of deadweight loss, and potential for monopolistic control.
Explanation:
An economy in which airlines charge different passengers different prices for the same flight ticket may not achieve economic efficiency due to the distortion of consumer and producer surplus. Airlines often use price discrimination, a strategy where different prices are charged to different groups of customers for the same service. In the case of airlines, this is often seen with business travelers and tourists, who are charged different rates based on their price elasticity of demand. While this strategy may increase airline profits, it can lead to inefficiencies in the market.
For instance, business travelers, who may have inelastic demand due to rigid travel schedules, could be charged higher prices. Conversely, tourists, who often have more flexibility and elastic demand, could be charged lower prices to fill seats. This type of pricing doesn't necessarily reflect the actual cost of providing the service but rather the maximum willingness to pay of different customer segments. While this allows airlines to capture more consumer surplus, it can also create deadweight loss, a market inefficiency where not all potential gains from trade are realized.
This inefficiency arises because the optimal allocation of resources, where price equals marginal cost, is distorted. The high prices for business travelers might reduce the number of those travelers below what would be socially optimal, while the lower prices for tourists might encourage more travel than is cost-effective from a resource allocation perspective. Furthermore, aggressive price discrimination practices, like slashing prices to remove competition, could lead to monopolistic control, further distorting prices and reducing economic efficiency.
Vivian Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to purchase the following inventory.
April May June
Required purchases (on account) $ 113,000 $ 133,000 $ 145,000
Vivian Booksâs accountant prepared the following schedule of cash payments for inventory purchases. Vivian Booksâs suppliers require that 90 percent of purchases on account be paid in the month of purchase; the remaining10 percent are paid in the month following the month of purchase.
Required
a.
Complete the schedule of cash payments for inventory purchases by filling in the missing amounts.
Schedule of cash payments for inventory
April May June
Payment for current accounts payable $107,350
Payment for previous accounts payable 14,000
Total budgeted payments for inventory $121,350
b.
Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.
Final answer:
The schedule of cash payments for inventory purchases is completed by calculating the payment for current accounts payable and payment for previous accounts payable for each month. The amounts are calculated using the given percentage of 90% for the month of purchase and 10% for the month following the month of purchase.
Explanation:
To complete the schedule of cash payments for inventory purchases, we need to calculate the amount of payment for current accounts payable and payment for previous accounts payable for each month.
For April, 90% of the required purchase of $113,000 is paid in the month of purchase, which is $113,000 * 90% = $101,700. The remaining 10% of the purchase is paid in the month following the month of purchase, which is $113,000 * 10% = $11,300. Therefore, the payment for current accounts payable in April is $101,700 and the payment for previous accounts payable is $11,300.
Following the same calculation, in May, the payment for current accounts payable is $119,700 and the payment for previous accounts payable is $13,300. In June, the payment for current accounts payable is $130,500 and the payment for previous accounts payable is $14,500.
Therefore, the schedule of cash payments for inventory purchases is as follows:
AprilMayJune$101,700$119,700$130,500$11,300$13,300$14,500$113,000$133,000$145,000
a. The schedule of cash payments for inventory purchases is: Month-April: Payment for current accounts payable is $101,700, Payment for previous accounts payable is $11,300.Month-April: Payment for current accounts payable is $119,700, Payment for previous accounts payable is $13,300. Month-June: Payment for current accounts payable is $130,500.Total payment for current accounts payable is $121,350.
b. Vivian Books will report $14,500 of accounts payable on its pro forma balance sheet at the end of the second quarter.
a. Complete the schedule of cash payments for inventory purchases:
Given:
Required purchases (on account):
April: $113,000
May: $133,000
June: $145,000
Vivian Books pays 90% of purchases in the month of purchase and 10% in the following month.
1. Calculate payments for current accounts payable:
April purchases: 90% of $113,000 = $101,700 (paid in April)
May purchases: 90% of $133,000 = $119,700 (paid in May)
June purchases: 90% of $145,000 = $130,500 (paid in June)
So, the payments for current accounts payable are:
April: $101,700
May: $119,700
June: $130,500
2. Calculate payments for previous accounts payable (10% of previous month's purchases):
Payment for previous accounts payable in May: 10% of April purchases = 10% of $113,000 = $11,300
Payment for previous accounts payable in June: 10% of May purchases = 10% of $133,000 = $13,300
So, the payments for previous accounts payable are:
May: $11,300
June: $13,300
3. Total budgeted payments for inventory:
Summing up the payments:
April: $101,700 (current) + $11,300 (previous) = $113,000
May: $119,700 (current) + $13,300 (previous) = $133,000
June: $130,500 (current)
b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter:
To determine the accounts payable at the end of June, we need to calculate the total purchases made during June and subtract the payments made in June:
Purchases in June: $145,000
Payments for June (90% of June purchases): $130,500
Accounts payable at the end of June:
[tex]\[ \text{Accounts Payable} = \text{Total purchases in June} - \text{Payments for June} \\\text{Accounts Payable} = \$145,000 - \$130,500 \\\text{Accounts Payable} = \$14,500\][/tex]
Consider the following yields to maturity on various one-year zero-coupon securities:
Security Yield (%)
Treasury 4.6
AAA corporate 4.8
BBB corporate 5.6
B Corporate 6.2
The credit spread of the BBB corporate bond is closest to:
A) 1.0% B) 5.6% C) 0.8% D) 1.6%
Answer:
A) 1.0%
Explanation:
Given that
Security Yield (%)
Treasury 4.6
AAA corporate 4.8
BBB corporate 5.6
B Corporate 6.2
By considering the above information, the credit spread of the BBB corporate bond would be
= BBB corporate - Treasury
= 5.6% - 4.6%
= 1.0%
We simply deduct the treasury from the BBB corporate so that the credit spread could come
The credit spread of a bond can be calculated by finding the difference in yield between two different rated bonds. In this case, the credit spread of the BBB corporate bond is found to be 0.8% by comparing its yield to the AAA corporate bond.
The credit spread of a bond is the difference in yield between a bond with a lower credit rating and a bond with a higher credit rating. In this case, to find the credit spread of the BBB corporate bond, we compare its yield to the yield of the AAA corporate bond.
The credit spread for the BBB corporate bond is calculated by subtracting the yield of the AAA corporate bond from the yield of the BBB corporate bond:
Credit Spread = Yield of BBB corporate bond - Yield of AAA corporate bond
Using the given yields, the credit spread of the BBB corporate bond is:
Credit Spread = 5.6% - 4.8% = 0.8%
Social compensation is especially likely when high-ability group members are suspected of loafing.
a. True
b. False
Answer:
The correct answer is letter "B": False.
Explanation:
Social loafing is the act in which employees underperform while given tasks individually compared when working in groups. Under this scenario, it is unlikely employers would provide extra compensation to workers because their productivity does not justify the reward.
A statute that imposes a 10-year jail sentence for driving while intoxicated would be best classified as ________________________a. Civil, procedural, and public. b. Criminal, substantive, and public laws. c. Civil, substantive, and private. d. Criminal, procedural, and public. e. Criminal, procedural, and private.
Answer:
a. Civil, procedural, and public.
Explanation:
A statute that imposes a 10-year jail sentence for driving while intoxicated would be best classified as civil, procedural, and public.
When do the OSD comptroller analyst and Office of Management and Budget analyst hold hearings to review the service's budget?
Answer:
Last quarter of every year (October, November or December)
Explanation:
Last quarter of every year (October, November or December)
A student borrows $55 comma 700 at 9.6% compounded monthly. Find the monthly payment and total interest paid over a 25 year payment plan.
Answer:
total interest paid I =$ 552,455.77
monthly payment = A/ nt =$2,027.18
Explanation:
compound interest formula is given by
A = P (1 + (r/n))^(nt)
where
A = ? (final amount)
P = $55,700
r = 9.6%
t = (1/12)monthly.
n = 25 year payment plan.
A = $55,700 (1 + (9.6/12))^(25*12)
total amount A = $608,155.77
total interest paid I =$ 552,455.77
initial principal P =$ 55,700
monthly payment = A/ nt = $608,155.77 / 300
=$2,027.18
To find the monthly payment and total interest paid over a 25 year payment plan, use the formula for the monthly payment of a loan. The monthly payment is approximately $454.09 and the total interest paid over the 25 year payment plan is approximately $36,227.
Explanation:To find the monthly payment and total interest paid over a 25 year payment plan, we can use the formula for the monthly payment of a loan. The formula is: Monthly Payment = P * (r(1+r)^n) / ((1+r)^n - 1), where P is the principal amount, r is the monthly interest rate, and n is the number of monthly payments. In this case, P = $55,700, r = 0.096/12 = 0.008, and n = 25*12 = 300. Plugging in these values, we get: Monthly Payment = $55,700 * (0.008(1+0.008)^300) / ((1+0.008)^300 - 1) ≈ $454.09. The total interest paid over the 25 year payment plan can be calculated by subtracting the principal from the total amount paid over the 25 years. Total Interest Paid = (Monthly Payment * n) - P ≈ ($454.09 * 300) - $55,700 ≈ $36,227. The monthly payment is approximately $454.09 and the total interest paid over the 25 year payment plan is approximately $36,227.
Learn more about Loan Payment Calculation here:https://brainly.com/question/30103353
#SPJ3
Now that you are successful in your new position, you have decided to reward yourself with a new (or new to you) vehicle. Sources say you should strive to have your vehicle payment be no more than 10% of your gross monthly salary, which you already computed in question 3. Write an inequality, using x to represent your gross monthly salary and y to represent your monthly car payment, which could be used to calculate the range of payments that will work in your budget. (Do NOT input your salary on this step).
Answer:
Range is : (0, 0.1x)
Explanation:
Problem has no information about amount of salary, so I will just use 'x' and 'y'.
Problem says that vehicle payment should be no more than 10% of gross monthly salary. This means that vehicle payment (Y) equals to 0.1 (10%) multiplied by gross monthly salary, which is stated as 'X'.
From this y = 0.1 X;
Next, if we want to identify range of payments: (0; 0.1X).
This means that any amount of money between 0 and 0.1X is acceptable.
Answer:
The inequality is
0< y<= 0.1x
Explanation:
If X represent the gross monthly salary and and y represent your monthly car payment the inequality.
10% of x= 0.1x
no more than 10% of your gross monthly salary means
Y <= 0.1x
The inequality therefore is 0< y<= 0.1x
The estimator determines who is responsible for what cost portion of supplying the temporary utilities.
A. True.
B. False
Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2018. Gross receipts were $300,000. The following expenses were incurred and paid as indicated: Expense Payment Date Rental of coliseum $25,000 December 21, 2018 Cost of goods sold: Food 30,000 December 30, 2018 Souvenirs 60,000 December 30, 2018 Performers 100,000 January 5, 2019 Cleaning the coliseum $10,000 February 1, 2019 Because the coliseum was not scheduled to be used again until January 15, the company with which Duck had contracted did not perform the cleanup until January 8–10, 2019. a. Calculate Duck's net income from the concert for tax purposes for 2018. If an amount is zero, enter "0".
Answer:
$85,000
Explanation:
First, we can organize the expenses information like this:
Expense Payment Date
Rental of Coliseum $25,000 12-21-2018
Cost of goods sold $90,000 12-30-2018
Performers $100,000 1-05-2019
Cleaning the coliseum $10,000 2-01-2019
Because in accrual basis of accounting, expenses are recognized when they are incurred, we then take the gross recepits, and substract from it all the expenses that were incurred in the year 2018.
That is to say, we substract all expenses except the cleaning the coliseum expense, because this expense was incurred in 2019, and was paid in 2019, therefore, it is not part of the taxable income for 2018 under the accrual basis of accounting.
Same is true for the performers expense. It was paid in 2019, but it was incurred in 2018, therefore, it has to be substracted to obtain the 2018 taxable income.
Taxable income = Gross receipts - Expenses incurred in 2018
= $300,000 - $215,0000
= $85,000
Which of these statements represent ideas that Peter Drucker introduced in his book The Practice of Management? (select all that apply)
A. Production costs are a component of sales
B.Charismatic leaders are more important than management practices
C.Employees should be treated as assets
D. A corporation can be thought of as a human community
E. Without customers, businesses wouldn't exist
Answer:
The correct answers are letters "C", "D", and "E": Employees should be treated as assets; A corporation can be thought of as a human community; Without customers, businesses wouldn't exist.
Explanation:
Austrian business professor Peter Ferdinand Drucker (1909-2005) is well-known in management for his book "The Practice of Management" (1954) in which he highlighted the importance of companies in society. Drucker studied the human side of corporations which includes workers and how leadership influences them. Besides, according to him, a business exists with the ultimate goal of creating a customer, meaning that managers would have to know their clientele and their needs to drive a firm to success.
Statements that represent ideas that Peter Drucker introduced in his book The Practice of Management are;
Employees should be treated as assets. A corporation can be thought of as a human community.Without customers, businesses wouldn't exist.Practice of Management can be regarded as how the goals of the organization can be achieved. It involves all managerial functions and all these are emphasized by Peter Drucker .
Learn more about Practice of Management at;
https://brainly.com/question/24371255
Financial and managerial accouting questions for my review sheet! i rate well.
Question 56
Select the correct statement.
A. Four purposes often claimed for budgeting involve planning, coordination, performance measurement, and reporting.
B. In a participative budgeting system, budget information flows in one direction only, from bottom to top.
C. The three major categories of the master budget are operating budgets, capital budgets, and pro forma financial statements.
D. The accounting department normally coordinates the development of the sales forecast.
Answer:
The correct answer is letter "C": The three major categories of the master budget are operating budgets, capital budgets, and pro forma financial statements.
Explanation:
A Master Budget is the compilation of all the budgets different departments of a company must come up with. Besides, the master budget includes the company projected financial statement, financial plan (operating budget with sales, expenses, and administrative projections), and cash-flow (capital budget including the acquisition of machinery, building, and labor).
The current asset section of Guardian Consultant's balance sheet consists of cash, accounts recelvable, and prepald expenses. The 2018 balance sheet reported the following: cash, $1,440,000; prepald expenses, $500,000; noncurrent assets, $3,800,000; and shareholders' equity. $3,900,000. The current ratio at the end of the year was 20 and the debt to equity ratio was 1.4.
Required:
Determine the following 2018 amounts and ratios: (Round your "The acid-test ratio" answer to 1 decimal place.)
1. Current liabilities
2. Long-term liabilities
3. Accounts receivable
4. The acid-test ratio
Answer:
a) Current Liabilities $2,780,000
b) Long term liabilities $2,680,000
c) Accounts receivable $3,620,000
d) Therefore Acid Test 1.8
Explanation:
Step 1: Calculate the Current Liabilities
The question requires a work-back based on the information given as follows
Stockholders Equity (A) $3,900,000
Debt Equity Ration 1.4
Total debt therefore ($3,600,000 x 1.4) (B) $5,460,000
Total debt and equity therefore is (A + B ) $9,360,000
($3,900,000 + $5,460,000)
Total Equity and Debt = Total Assets
Total Assets therefore $9,360,000
Therefore Current Assets $5,560,000
(Total debt - Non Current Asset)
($9,360,000 - $3,800,000)
Less: Cash and prepaid expenses ($1,940,000)
($1,440,000 + $500,000)
Accounts receivable $3,620,000
Current Ratio therefore is 2.0 (not 20)
Meaning: Current Liabilities $2,780,000
(Current Assets/ Current ratio)
($5,560,000/2)
Step 2: Calculate Long term Liabilities
Total debt (from step 1) $5,460,000
less; Current Liabilities $2,780,000
Long term liabilities $2,680,000
Step 3: Accounts Receivable
Total Assets $9,360,000
Current Assets $5,560,000
(Total debt - Non Current Asset)
($9,360,000 - $3,800,000)
Less: Cash and prepaid expenses ($1,940,000)
($1,440,000 + $500,000)
Accounts receivable $3,620,000
Step 4: The Acid test ratio
Cash $1,440,000
Accounts Receivable $3,620,000
Quick Asset (Cash + Accounts receivable) $5,060,000
Current Liabilities $2,780,000
Therefore Acid Test 1.8
(Quick Asset / Current liabilities)
(5,060,000/2,780,000) 1.8
Final answer:
This response explains how to calculate current liabilities, long-term liabilities, accounts receivable, and the acid-test ratio based on the information provided in the question.
Explanation:
Current liabilities: To find current liabilities, we use the current ratio formula: Current Ratio = Current Assets / Current Liabilities. Given the current ratio is 20, and we know current assets are $1,940,000, we can calculate current liabilities to be $97,000.
Long-term liabilities: Long-term liabilities can be found by using the debt to equity ratio formula: Debt to Equity Ratio = Total Liabilities / Shareholders' Equity. Shareholders' Equity is given at $3,900,000, and the debt to equity ratio is 1.4, so total liabilities would be $5,460,000.
Accounts receivable: We are given cash, prepaid expenses, and noncurrent assets, so to find accounts receivable, we calculate Total Assets = Current Assets + Noncurrent Assets. Therefore, accounts receivable would be $2,360,000.
The acid-test ratio: The acid-test ratio formula is (Current Assets - Inventory) / Current Liabilities. Since inventory information is not provided, we cannot calculate the exact acid-test ratio without that data.
Sarah is watching a baseball game and accesses the internet to look up stats for one of the players. In terms of integration of media platforms this illustrates:
Answer:
The correct answer is: investigative spider-webbing.
Explanation:
Investigative spider-webbing refers to the practice of using information media to enhance the data that could be collected from a source that is already in use. The secondary information is typically obtained from the internet using laptops, smartphones or tablets to obtain supplementary content on relevant information or to create content that could be immediately seen in the primary device.
Provide responses to the following questions 1. What is the purpose of a staffing management plan? What does it address?
Answer:
Explained below:
Explanation:
A staffing management plan refers to the plan produced to help businesses primarily identify and later procure the workers at all levels and in all departments of the business organization. The purposes of a staffing management plan to :
Classify staffing needs.
Build timelines.
Establish funds considerations.
Devise and implement talent acquisition strategies.
Construct and execute an on boarding schedule.
Identify and design suitable training bodies and methods.
Follow the plan until it reaches effectiveness.
It addresses the requirements of the organization in many ways, depending upon its business model, its structure, and the system in which it finishes projects and reaches deadlines.
The market demand curve A. is found by vertically adding the individual demand curves. B. represents the sum of the quantities demanded by all the buyers at each price of the good. C. slopes upward. D. represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good.
Answer:
B. represents the sum of the quantities demanded by all the buyers at each price of the good
Explanation:
The market demand curve is found by horizontally adding the individual demand curves.
The market demand curve slopes downward.
I hope my answer helps you
The market demand curve represents the total quantity demanded by all buyers at each price (option B). It is typically downward sloping, reflecting that lower prices induce greater demand.
The market demand curve can best be defined by statement B. It represents the sum of the quantities demanded by all the buyers at each price of the good. This curve is achieved by horizontally summing all individual demand curves. The market demand curve typically slopes downward, depicting an inverse relationship between price and quantity demanded.
An upward sloping curve is not generally characteristic of demand curves, but rather of supply curves. And the curve doesn't represent the sum of the prices that buyers are willing to pay, rather it represents the quantity of the good that buyers are willing to buy at each price level.
Learn more about Market Demand Curve here:https://brainly.com/question/34408186
#SPJ3
What will be the effect on the contribution margin ratio if the selling price per unit decreases and variable cost per unit remains the same?
A) It will remain the same.
B) It will decrease.
C) It will increase.
D) It is impossible to determine with the given information.
Answer:
correct answer is B) It will decrease.
Explanation:
we know that contribution margin ratio is express as
contribution margin ratio = ( Sales Revenue - Variable Costs ) ÷ Sales Revenue ...........................1
so here any increase in selling price increase contribution margin
and if the selling price per unit is decreases
and variable cost per unit remain same
contribution margin ratio will decrease
so here correct answer is B) It will decrease.
When should you use Add other funds to this deposit grid in a Deposit Transaction? Identify 3 correct options. (Select all that apply)(A) When an employee reimburses the company(B) You receive a tax refund from the IRS(C) You need to record an ACH payment of a customer invoice(D) When a company doesn’t record income using sales transactions (invoices or sales receipts), and wants to record deposits directly to income accounts To record the payment of a Vendor Bill
Answer:
(A) When an employee reimburses the company
(B) You receive a tax refund from the IRS
(D) When a company doesn’t record income using sales transactions (invoices or sales receipts), and wants to record deposits directly to income accounts
Explanation:
The three options are -
Option A is correct as the employee repays the company so that the funds to this deposit will be added to the deposit transaction.
Option B is correct as the employee or an individual will get the tax refund from the IRS which can be deposited to the deposit grid.
Option D is correct as it is recorded to income accounts directly as deposits.
Any payment cannot be added as deposit. Therefore, option C is incorrect.
Final answer:
The 'Add other funds to this deposit grid' in Deposit Transactions is used when an employee reimburses the company, when receiving a tax refund from the IRS, and for directly recording income not through sales transactions. It is not used for recording ACH payments of customer invoices.
Explanation:
Using the Add other funds to this deposit grid in a Deposit Transaction is necessary in several distinct scenarios within the realm of accounting and financial management. This feature allows for recording various types of transactions that are not directly related to customer payments or regular sales receipts.
(A) When an employee reimburses the company: If an employee is returning money to the company that they had previously been given, such as for a business expense that was overpaid, this would be recorded here.(B) You receive a tax refund from the IRS: Tax refunds are not sales revenue, but they are funds that the company receives and needs to account for. The deposit grid is the correct place to record such transactions.(D) When a company doesn’t record income using sales transactions: If a business directly receives income that is not associated with an invoice or sales receipt, such as a one-time income source or a rental income, it can be recorded in the deposit grid to the appropriate income accounts.However, option (C), recording an ACH payment of a customer invoice, does not belong in the deposit grid. Customer invoice payments are typically recorded elsewhere in the accounting system, usually through the accounts receivable module, rather than directly in a deposit transaction.
Matured Water Services had net income for the month of October of $ 50 comma 880. Assets as of the beginning and end of the month totaled $ 362 comma 000â, and $ 486 comma 000â, respectively. Calculate Matured Waterâ Services' ROA for the month of October.
Answer:
12%
Explanation:
Given that,
Net income = $50,880
Asset at the beginning = 362,000
Asset at the end = 486,000
Average total assets:
= (Asset at the beginning + Asset at the end) ÷ 2
= (362,000 + 486,000) ÷ 2
= $424,000
Therefore,
ROA = Net income ÷ Average total assets
= $50,880 ÷ $424,000
= 0.12 or 12%
Therefore, the Matured Water Services' ROA for the month of October is 12%.
The Return on Assets (ROA) of Matured Water Services for the month of October is 12% after calculating with the given figures of net income and average total assets.
Explanation:The question is asking for the Return on Assets (ROA) of the company Matured Water Services for the month of October. The formula to calculate Return on Assets (ROA) is Net Income divided by Average Total Assets. In this case, the net income is $50,880. The average total assets are calculated as the sum of the beginning and ending total assets divided by 2, which in this case is $(362,000+486,000)/2 = $424,000. Therefore, the ROA is $50,880/$424,000 = 0.12, or 12%
Learn more about Return on Assets here:https://brainly.com/question/31868303
#SPJ3
Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is either similar or identical products. Which of the following are other characteristics of this market structure?
a. Market control by many small firms
b. Mutual interdependence
c. Market control by a few large firms
d. Neither mutual interdependence nor mutual dependence
e. Difficult entry
Answer:
a. Market control by many small firms
c. Market control by a few large firms
e. Difficult entry
Explanation:
The oligopoly is a type of market where only a few dominant firms operate in such markets. Each of these firms has a significant presence in the market and can influence the pricing process. A special form of oligopoly - if there are only two firms in the market - is called duopoly. In other words, oligopoly means that there are many buyers in front of a small number of firms that will affect each other in the same field of activity.
When one firm's decision-making activities of other firms in the same area of activity are unaware and independent of each other's activities, it does not represent an oligopoly concept. There are certain conditions for a market to be an oligopoly market. These are the conditions that differentiate firms operating in the same field from other markets.
Features of oligopoly:
- It is important that firms operating in the oligopoly market have a mutual relationship with one another. It is important to follow and evaluate the behavior of one firm in terms of both the business and the competition and the decisions it makes by another firm. Otherwise, it is not appropriate to talk about oligopoly.
- Goods and services produced in oligopoly markets are sometimes delivered to consumers in completely different and sometimes different ways. If the goods and services produced in the oligopoly market are completely identical or completely substituted for each other, they are called pure oligopoly. An example is the goods produced in the oil sector.
- Another feature of the oligopoly market, unlike other markets, is that firms that have entered this market have to take into account pricing strategies, production volumes, consumer masses and similar variables in the market. This is one of the features that indicate that access to the oligopolistic market is difficult.
Types of oligopoly:
-Cournot model is the first and most widely used model in duopol models. Thus, it was founded in 1938 by the French economist Agustin Cournot. Agustin Cournot investigated how much of the market will be sold by two separate firms that use the same mineral water as their raw materials. One of the firms produces goods for half of the aggregate market demand in terms of profit margin. The other company selects the rest of the market with a target mass and produces the appropriate goods. Quantity strategy, not price, is important here.
In contrast to the Cournot model in the Bertrand model, firms act in accordance with their pricing strategies instead of the sales volume. According to the price of the first firm on the commodity, the second firm offers a lower price than the consumer. Accordingly, the first firm also offers a lower price on the market than the second. This implies the concept of price competition and, in this case, continues to the minimum profit margin.
-Chamberlin model. Firm A is the only manufacturer of the same kind in the market. Company B enters the market and starts producing this type of product. Here Company B operates in accordance with the firm's market strategy and operates on its experience. Unlike other models, the two existing companies in the market understand that they are interdependent and act on a common point.
- The Edgeworth model is the first company in the market to maintain a high level of profitability. On the other hand, a second firm that enters the market from a competitive position and redirects the mass to itself. In response, the first firm drops prices compared to the second firm. At the same time, the second firm is lowering the price of the first firm again. As this competition continues, firms are already thinking that they have created their target mass at some point. In this case, they start to raise prices. In the end, a wave-price mechanism emerges. This price volatility in the market continues until firms realize they have to share the market .
- In the Stackelberg model, one of the two firms in the market is a leader and the other is a successor company. The leader firm does not regard the pursuit firm as a powerful competitor and enables it to operate in the market. The pursuant firm, in turn, operates for maximum profit from its falling market share.
Which of the following organizations requires publicly owned companies to be audited byindependent accountants (CPAs)?A) Securities and Exchange Commission (SEC)B) Public Company Accounting Oversight Board (PCAOB)C) Financial Accounting Standards Board (FASB)D) American Institute of Certified Public Accountants (AICPA)
Answer:
A) Securities and Exchange Commission (SEC)
Explanation:
Securities and Exchange Commission (SEC) is an agency of the federal or central government established by law. it laid down rules and regulations to be followed by security brokers, dealers and other market participants which shapes their relationship and ensure fairness in their business business relationship, The SEC as it is popularly called is charged with the responsibility of regulating the security and exchange market as a whole.