Answer: Increase in money in circulation will increase Demand and Inflation will go up which will eventually lead to lower levels of unemployment in the short term.
Explanation: Governments through out the world Implements certain policies which may be a short term or long term policy to control or regulate the Economy. Most of the policy is to ensure that the Economy runs in an equilibrium,which means Demand will be similar to supply etc.
When the volume of money is Increased,it will lead to increase Demand for goods and services which will cause inflation to rise and unemployment rate will reduce.
Candace uses an office in her home exclusively for her business. The business use of the home is 100 square feet out of 2,000 square feet for the entire home. The total expenses to allocate are $3,000. Candace wishes to maximize her deduction in the current year. What is the amount of her home office deduction before any income limitations?
Answer:
Explanation:
business use of home = 100 sq ft
total sq ft of home = 2000 sq ft
in percent terms, business use of home = (100 / 1200) x 100
= 8.33%
total expenses to allocate are $3,000
expense to be allocated to business use
= 3000 x 8.33%
= 250
deduction allowable = 250
There is an inverse relationship between bonds' quality ratings and their required rates of return. Thus, the required return is lowest for AAA-rated bonds, and required returns decrease as the bond ratings get higher.A. TrueB. False
Answer:
A. True
Explanation:
The three statement present are correct.
A lower quality bond will need to pay a better return in order to attract investor. as if given the choise, they would purchase better quality if the rate is the same.
The second statemnt, yes the AAA- bonds will have a lower rate. As they are pretty much a risk-free rate
The next bond, which is AAA will have a lower return as is even more solvent to pay.
Strategic sourcing is the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business. True or False
Answer: True
Explanation:
Strategic sourcing is defined as the planning process used in supply chain management of business through which supply channel is created for organization to source-search and purchase supplies at low cost from market.This plan helps in establishing beneficial relationship between buyer and supplier.
It can fulfill the requirement of supplies needed by organizational channels .it helps in success of organization along with benefits that cannot be achieved from just purchasing mechanism .
Thus, the statement given is true.
The McKnight Company expects sales in 2015 of 208 comma 000 units of serving trays. McKnight's beginning inventory for 2015 is 18 comma 000 trays, and its target ending inventory is 27 comma 000 trays. Compute the number of trays budgeted for production in 2015. Select the labels and enter the amounts to calculate the units of finished goods (trays) to be produced. Budgeted unit sales 208,000 Add target ending finished goods inventory 27,000 Total required units Deduct beginning finished goods inventory –18,000 Units of finished goods to be produced
Answer:
units required to be produced 217,000
Explanation:
expected sales for the period 208,000
desired ending inventory 27,000
total units required 235,000
beginning units ( 18,000 )
units required to be produced 217,000
The company needs units to fullfil teir sales bdget and desired ending invenoty.
the beginning inventory already complete a portion of the requirement so is the difference what determinates the required units to be produced.
Final answer:
To calculate the number of serving trays McKnight Company needs to produce in 2015, you add the budgeted unit sales to the target ending inventory and subtract the beginning inventory, which totals 217,000 units.
Explanation:
To compute the number of trays the McKnight Company budgeted for production in 2015, we use the following formula:
Budgeted unit sales + Target ending inventory - Beginning inventory = Units of finished goods to be produced.Applying this formula:
208,000 (Budgeted unit sales)+ 27,000 (Target ending inventory)- 18,000 (Beginning inventory)= 217,000 units of finished goods to be produced in 2015.On September 30, Valerian Co. had a $110,000 balance in Accounts Receivable. During October, the company collected $110,390 from its credit customers. The October 31 balance in Accounts Receivable was $104,000. Determine the amount of sales on account that occurred in October.
Answer:
The correct answer is $104,390.
Explanation:
According to the scenario, the given data are as follows:
Accounts receivable on Sep.30 = $110,000
Collected amount in Oct. = $110,390
Accounts receivable on Oct.31 = $104,000
So, we can calculate the sales on account in October by using following formula:
Sales = Closing Balance + Amt received from Creditor - Opening Acct Receivable
= $104,000 + $110,390 - $110,000
= $104,390
Hence, the sales on account during October is $104,390.
Final answer:
The sales on account for Valerian Co. in October were calculated by starting with the opening balance of Accounts Receivable, adding the October sales on account, and subtracting the collections from customers to determine the ending balance. The sales on account were found to be $104,390.
Explanation:
To determine the amount of sales on account that occurred in October for Valerian Co., we need to analyze the changes in the Accounts Receivable balance. We start with the opening balance of Accounts Receivable, add the sales on account, and then subtract the collections from customers to arrive at the ending balance.
Here is the calculation step-by-step:
Opening Balance (September 30): $110,000Collections (During October): $110,390Ending Balance (October 31): $104,000To find the sales on account, we add the Opening Balance and the Sales on Account, and subtract the Collections, which will give us the Ending Balance. This relationship can be represented as follows: Opening Balance + Sales on Account - Collections = Ending Balance.Rearrange the equation to solve for Sales on Account: Sales on Account = Ending Balance + Collections - Opening Balance.Plug in the values: Sales on Account = $104,000 + $110,390 - $110,000 = $104,390.Therefore, the amount of sales on account that occurred in October was $104,390.
Retained Earnings represents the firm's cumulative earnings since inception, minus dividends and other adjustments. True False
Answer:
True
Explanation:
Retained earnings refer to profits generated by a business but have not been distributed to the shareholders. Business owners or shareholders are entitled to share in the company's profits. The company directors may decide not to distribute all the earnings to the shareholders.
Retained earning are recorded independently in the balance sheet as part of the shareholder's equity. The figure in the balance sheet shows the total amount of a company's retained earnings since inception. Retained earnings increase when a company makes profits and decreases when losses are reported. A company may reinvest the retained earnings in the business or use them for other purposes such as debts repayments.
Classify the following changes in each of the accounts as either an outflow or an inflow of cash. During the year (a) marketable securities increased, (b) land and buildings decreased, (c) accounts payable increased, (d) vehicles decreased, (e) accounts receivable increased, and (f) dividends were paid.
Answer:
(a) marketable securities increased - outflow of cash
(b) land and buildings decrease - Inflow of cash
(c) accounts payable increased - Inflow of cash
(d) vehicles decreased - Inflow of cash
(e) accounts receivable increased - Outflow of cash
(f) dividends were paid - Outflow of cash
Explanation:
Marketable securities are an asset in the entity's financial statements. An increase in an asset in simple terms can be likened to the use of cash in the purchase of an asset. As such, an increase in market securities is an outflow of cash.
Land and buildings decreased - A decrease in land and building is a decrease in asset which can be likened to a disposal of the asset for cash hence this is an inflow of cash.
Accounts payable increased - This is an increase in liability which can easily be likened to the receipt of cash from a loan. Hence this is an inflow.
Vehicles decreased - A decrease in Vehicles is a decrease in asset which can be likened to a disposal of the asset for cash hence this is an inflow of cash.
Accounts receivable increased - This is an increase in an asset other than cash. In simple terms, it can be explained as the exchange of cash for another asset. As such this is an outflow.
Dividends were paid - clearly an outflow of cash.
Partha owns a qualified annuity that cost $52,000. Under the contract, when he reaches age 65, he will receive $500 per month until he dies. Partha turns 65 on June 1, 2018, and receives his first payment on June 3, 2018. Refer to the Annuity payment table to answer the following question. Partha will report gross income of $______ from the annuity payments in 2018.
Answer:
=$2100
Explanation:
Figure out the amount of gross income by partha
The payment to be recieved monthly = $500
The number of payments to be recieved = 260 (Partha`s age is 65)
Thus,
Monthly exclusion = cost of annuiy / number of payments
= [tex]\frac{52000}{260}[/tex]
= $200
So,
Gross income = (monthly payment - monthly exclusion) * (nunmber of months)
= ($500 - $200) * 7
= $2100
Therefore,
partha will report gross income of $2100, from the annuity payment in 2018
Part Three: Neighboring WSU dropped their tuition and fees by 14 percent and TTA saw enrollment fall from 8,400 to 7,400. What is the cross elasticity between the two schools.?
Answer:
0.85
Explanation:
Given that
Dropped percentage of tuition and fees = 14%
Enrollment fall from 8,400 to 7,400
So, the cross elasticity between the two schools is
= Percentage change in quantity demanded of one good ÷ Percentage change in price of another good
where,
Percentage change in quantity demanded of one good equals to
= ($7,400 - $8,400) ÷ ($8,400)
= -11.9%
And, the percentage change in price of another good is -14%
So, the cross elasticity is
= -11.9% ÷ -14%
= 0.85
In 2019, Brazil's trade deficit as share of GDP widened. In that year, government deficit as share of GDP declined and investment as share of GDP remained constant. What must have happened to private savings as share of GDP?
Answer:
The private savings as a share of the GDP must have declined.
Explanation:
according to the twin deficit hypothesis:
budget deficit = savings + trade deficit - investments
the government deficit as a share of GDP declined and investment as a share of GDP remained constant that means that the savings should decline.
McDonald's conducts a value chain analysis of Burger King and discovers that Burger King's logistics and procurement of inputs are less costly than its own, which allows Burger King to achieve a higher profit margin. This is an example of Select one:
a. analyzing support activities.
b. identifying the cost drivers for each activity.
c. analyzing primary activities.
d. analyzing competitors’ pricing.
e. assessing willingness to pay.
Answer:
The correct answer is letter "D": analyzing competitors’ pricing.
Explanation:
Companies tend to analyze their competitors' pricing to review what are other firms of the same industry doing to obtain revenue. This study usually involves verifying competitors' raw material, labor, and manufacturing pricing. The best practices can be adapted to the analyzing company so revenue can be maximized.
At the end of the month, Grant Entertainment Company showed a $9,300 book balance in its cash account. The following information was gathered by studying the bank statement and the company's cash records: (1) deposits in transit amounted to $3,150 (2) outstanding checks were $6,200 (3) a $550 check had been incorrectly drawn on Grant's account by the bank (4) NSF checks returned by the bank were $750 (5) bank service charge was $29 (6) credit memo for $75 for the collection of one of the company's account receivable Based on the above information the true cash balance would be
Answer:
$9,146
Explanation:
The question states that the true cash balance should be calculated based on the information given
In order to do this, a bank reconciliation statement will be computed as follows:
December 31
Particulars Amount ($) Amount ($)
Cash balance (based company books) 9,300
Add the following:
Incorrectly drawn check 550
Company's credit memo on account receivable 75
Subtract the following:
NSF check 750
Bank Charges 29
Adjusted Cash Balance as per books 9,146
The true cash balance after all the necessary additions and subtractions based on omissions from the bank statement is $9,146
On January 1 of the current year, Lafferty signs a contract to rent a building for $1,000 per month for the next three years. On that date, Lafferty pays $36,000 for rent. On January 1 when payment is made, what is the amount of the prepaid rent that should be classified as a noncurrent asset
Answer:
$24,000
Explanation:
Given that
Rent of the building per month = $1,000
On that date, the rent value= $36,000
So, the amount of prepaid expenses would be recognized in two ways
As a current asset
= Rent of the building per month × total number of months in a year
= $1,000 × 12 months
= $12,000
As a non-current asset, it would be
= Total rent - prepaid rent
= $36,000 - $12,000
= $24,000
On August 31, the balance sheet of La Brava Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred;
a. Paid $2,900 cash for accounts payable due.
b. Collected $1,300 of accounts receivable.
c. Purchased additional equipment for $2,100, paying $800 in cash and the balance on account.
d. Recognized revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October.
e. Declared and paid a $400 cash dividend.
f. Paid salaries $1,700, rent for September $900, and advertising expense $200.
g. Incurred utilities expense for month on account $170.
h. Received $10,000 from Capital Bank on a 6-month note payable.
Instructions
Prepare a tabular analysis of the September transactions beginning with August 31 balances. The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Common Stock + Retained Earnings + Revenues – Expenses – Dividends.
Prepare an income statement for September, a retained earnings statement for September, and a balance sheet at September 30.
Answer:
1. See attached file for the tabular analysis
2. La Brava Veterinary Clinic
Income Statement
For the month Ended September 30
Revenue $7,300
Less: Operating expenses
Salaries expense 1,700
Rent expense 900
Advertising expense 200
Utilities expense 170
Total operating expense 2,970
Net Income $4,330
3. La Brava Veterinary Clinic
Statement of Retained Earnings
For the month Ended September 30
Beginning balance $700
Add: Net income 4,330
Less: Dividends 400
Ending balance $4,630
4. La Brava Veterinary Clinic
Balance Sheet
As of September 30
Asset
Current Assets
Cash $15,900
Accounts receivable 5,200
Office supplies 600
Total current assets 21,700
Non-current assets
Equipment 8,100
Total non-current assets 8,100
Total assets $29,800
Liabilities and Equity
Current liability
Accounts Payable $2,000
Accrued expenses 170
Total current liabilities 2,170
Non-current liability
Note Payable $10,000
Total non-current liabilities $10,000
Total liabilities $12,170
Equity
Capital stock $13,000
Retained earnings 4,630
Total equity $17,630
Total liabilities and Equity $29,800
Explanation:
1. Entries for the month of September
a. Debit Accounts payable $2,900
Credit Cash $2,900
b. Debit cash $1,300
Credit Accounts receivable $1,300
c. Debit Equipment $2,100
Credit Cash $800
Credit Notes payable $1,300
d. Debit Cash $2,500
Debit Accounts receivable $4,800
Credit Accounts receivable $7,300
e. Debit Dividends $400
Credit Cash $400
f. Debit Salaries expense $1,700
Debit Rent expense $900
Debit advertising expense $200
Credit Cash $2,800
g. Debit utilities expense $170
Credit accrued expense $170
h. Debit cash $10,000
Credit Notes payable $10,000
All of these transactions will be posted in the tabular analysis.
To analyze the September transactions and prepare the financial statements, we start with the August 31 balances and record each transaction in a tabular format. The income statement shows the revenues and expenses for September. The balance sheet on September 30 presents the financial position of the company.
Explanation:To analyze the September transactions and prepare the financial statements, we start with the August 31 balances and record each transaction in a tabular format. The columns represent the different components of the balance sheet equation. After recording all the transactions, we can prepare the income statement, retained earnings statement, and balance sheet for September.
The income statement shows the revenues and expenses for September, resulting in net income or net loss. The retained earnings statement shows the changes in the retained earnings account, including the net income/loss and dividends declared. The balance sheet on September 30 presents the financial position of the company at the end of the month, with assets, liabilities, and equity.
Learn more about Preparing Financial Statements here:https://brainly.com/question/33537378
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A strategy is a(n):
a.set of opportunities in the marketplace.
b.broad statement of purpose.
c.simulation used to test various product line options.
d.plan for cost reduction.
e.action plan to achieve the mission.
Answer:
e.action plan to achieve the mission.
Explanation:
A strategy is an action plan to achieve the mission.
Answer:
The correct answer is e .action plan to achieve the mission.
Explanation:
The strategy answers the following question: how are we going to achieve what is proposed? Therefore, it is directly related to the group of actions that will be carried out in order to meet 100% of the goals previously established. The mission refers to the objective or purpose for which it works, which must be internalized by all collaborators in order to be very clear in what way they must go to achieve the organizational goals.
When Miles separated from service with his former employer, he had a $10,000 outstanding balance in an employer plan loan. He received a total distribution of $30,000 without regard to the loan. The check he received was for $14,000. Mandatory withholding was $6,000. How much of the distribution is taxable
Answer:
taxable distribution is $30000
Explanation:
given data
outstanding balance = $10,000
total distribution = $30,000
check he received = $14,000
withholding = $6,000
solution
we know here outstanding balance is given $10000 in employ plan loan
so total they received as net of loan outstanding here is $30000
so that total benefit here $30000
that is eligible for the purpose
hence here taxable distribution is $30000
Find the present values of the following cash flow streams. The appropriate interest rate is 9%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculator's cash flow register, you must enter CF0
Answer:
a. Find the present values of the following cash flow streams. The appropriate interest rate is 6%. Round your
answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculator's cash flow register, you must enter CF0 = 0.
Year Cash Stream A Cash Stream B
1 $100 $300
2 400 400
3 400 400
4 400 400
5 300 100
Explanation:
Please note that unlike the question above, I used an interest rate of 9% since that’s what you asked for so my answer will be different from that of the question above since it uses 6%
Using a financial calculator (specifically BAII plus).
The net present value of the cash stream A is $1,133.
While that of cash stream B is $1,269
Final answer:
The present value of a two-year bond with a $3,000 principal and 8% interest is calculated by discounting the future cash flows of interest and principal back to present terms using rates of 8% and 11%. The total present value at an 8% discount rate remains $3,000, while at an 11% rate, it decreases to $2850.04.
Explanation:
Calculating the present value of cash flows involves finding what future amounts are worth today, given a specific interest or discount rate. For a simple two-year bond with a principal of $3,000 and an 8% interest rate, you receive $240 in interest each year. Using the present value formula, we discount these future cash flows back to their value in present terms.
Present Value Calculations
First with a discount rate of 8%:
Year 1 Interest PV = 240 / (1 + 0.08)1 = $222.22
Year 2 Interest PV = 240 / (1 + 0.08)² = $205.76
Year 2 Principal PV = 3000 / (1 + 0.08)² = $2,572.02
Total Present Value = $222.22 + $205.76 + $2,572.02 = $3,000
Next, with a discount rate of 11%:
Year 1 Interest PV = 240 / (1 + 0.11)1 = $216.22
Year 2 Interest PV = 240 / (1 + 0.11)² = $194.80
Year 2 Principal PV = 3000 / (1 + 0.11)² = $2,439.02
Total Present Value at 11% discount rate = $216.22 + $194.80 + $2,439.02 = $2850.04
To obtain the final answer for the bond's worth in present value terms, we add up all the present values for the different time periods.
JKS, a nongovernmental not-for-profit art museum, has elected not to capitalize its permanent collections. In 2X11 a bronze statue was stolen. The statue was not recovered, and insurance proceeds of $35,000 were paid to JKS in 2X12. This transaction would be reported in: I. The statement of activities as permanently restricted revenues.; II. The statement of cash flows as cash flows from investing activities.a. Neither I nor II.
b. I only.
c. Both I and II.
d. II only.
Answer:
I. The statement of activities as permanently restricted revenues.;
Explanation:
Permanently restricted items are the objects under the owner of a trustee which are received with restriction by the donor . Restriction states that
the donation must be maintained permanently and which may be used for financial gain for the trust.
What are the most relevant cultural values affecting the consumption of each of the following? Describe how and why these values are particularly important. a. Internet b. Video games/consoles c. Milk d. Fast food e. Luxury cars f. Cell phones
Answer:
a. Internet - Connectivity and globalization are the values behind the consumption of Internet. The omnipresence of instant communication and responsiveness are the main reason why Internet is so ubiquitous nowadays. Everyone has cognitive and informative needs that need to be satisfied by using the Internet.
b. Video games/consoles - A sense of belonging to a special community and peer influence are values which mostly influence the consumption video games. Young people (the main users of these products) are under the pressure to be involved in online video game communities. Also, there is the presence of immersion in a different, virtual world.
c. Milk - Being and essential FMCG good, milk consumption is stimulated by traditional values, as most of us associate milk with something that has been a staple in the fridge since childhood. Also, the well-being value is what drives milk consumption, as it boasts several health benefits which most of us are aware of.
d. Fast food - Convenience is something that mostly stimulates the consumption of fast food. All of us know it is not healthy, however, we opt for this option when we run out of time to have a proper meal. Also, we may be triggered by the choices of our peers and family, which brings in the society cultural element.
e. Luxury cars - The value of prestige and cultural status is what makes us buy luxury cars and several other luxury items. Although it provides the same essential value as a usual car (in the sense of the need for transportation), a luxury car is a status symbol which signifies our wealth.
f. Cell phones - The feeling for connectivity, integration with the society and other cultural values similar to the ones which drive Internet consumption are present as the motivators for cell phone consumption too. Everyone has one, and even if we do not feel the actual need to possess one (which is rare, since they are very addictive), we are tempted by their omnipresence in our environment.
How long will it take an investment of $5,000 to grow to $7,500 if it earns simple interest of 10% per year?
When an economist talks about utility, she is talking about A. a company that provides electricity, water, gas, etc. B. the satisfaction, in terms of price, that a producer receives from selling his product C. the amount of one good that a person is willing to give up in order to get a unit of another good D. the satisfaction that results from the consumption of a good E. the satisfaction that results from the consumption of a good minus the price that must be paid to get the good
Answer:
The correct answer is letter "D": the satisfaction that results from the consumption of a good.
Explanation:
Utility is the satisfaction that a person receives from using a good or service. Utility is a very easy concept to understand but very hard to quantify. Economists may, however, indirectly calculate utility based on the economic choices made by consumers.
Crisp Cookware's common stock is expected to pay a dividend of $3 per share at the end of this year; its beta is 0.9; the risk-free rate is 5.2%; and the market risk permium is 6%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $40 per share. What does the market believe will be the stock's price three years from now?
Answer:
The answer is $41.21
Explanation:
Required Rate of Return = Risk Free Rate + Beta*(Market Risk Premium)= 5.2% + 0.9 * 6% = 10.6%
Cost of Equity = D1/Current Stock Price + Growth Rate
10.6% = $3/$40 +g
g = 3.1%
Stock Price After 3 Years = Current Stock Price*Growth Rate= $40 * (1.031)= $41.21
Final answer:
Using the Gordon Growth Model and the CAPM, the expected future stock price of Crisp Cookware in three years is approximately $39.85. The required rate of return is 10.6%, and the constant growth rate for dividends is found to be 2.5%.
Explanation:
To determine the future stock price of Crisp Cookware, we'll use the Gordon Growth Model, which states that the current stock price equals the dividend per share at the end of the year (D1) divided by the required rate of return (r) minus the constant growth rate (g). The required rate of return can be calculated using the Capital Asset Pricing Model (CAPM), where r = risk-free rate + beta * (market risk premium).
First, we calculate the required rate of return:
r = risk-free rate + beta * (market risk premium)r = 5.2% + 0.9 * (6%)r = 5.2% + 5.4%r = 10.6%Now, we can use the current stock price to solve for the growth rate (g):
$40 = $3 / (10.6% - g)
After solving for g, we find:
g = 2.5%Knowing the growth rate, we can project the stock price three years from now, P3, by growing the dividend:
D4 = D1 * (1 + g)^3D4 = $3 * (1 + 0.025)^3Next, we calculate the price three years from now, assuming dividends grow at a constant rate:
P3 = D4 / (r - g)P3 = ($3 * (1 + 0.025)^3) / (0.106 - 0.025)P3 = ($3 * 1.0776) / 0.081P3 = $39.85 approximatelyThe market believes that three years from now, Crisp Cookware's stock will be priced at around $39.85, given the growth rate and the required rate of return.
Talbot Riding Stables provides stables, care for animals, and grounds for riding and showing horses. The account balances at the beginning of 2018 were:
Problem Set B Enlarge Image During 2018, the following transactions occurred: Talbot provided animal care services, all on credit, for $210,300. Talbot rented stables to customers for $20,500 cash. Talbot rented its grounds to individual riders, groups, and show organizations for $41,800 cash.
There remains $15,600 of accounts receivable to be collected at December 31, 2018.
Feed in the amount of $62,900 was purchased on credit and debited to the supplies account.
Straw was purchased for $7,400 cash and debited to the supplies account.
Wages payable at the beginning of 2018 were paid early in 2018. Wages were earned and paid during 2018 in the amount of $112,000.
The income tax payable at the beginning of 2018 was paid early in 2018. Payments of $73,000 were made to creditors for supplies previously purchased on credit. One year's interest at 9% was paid on the notes payable on July 1, 2018. During 2018, Jon Talbot, a principal shareholder, purchased a horse for his wife, Jennifer, to ride. The horse cost $7,000, and Talbot used his personal credit to purchase it. Property taxes were paid on the land and buildings in the amount of $17,000. Dividends were declared and paid in the amount of $7,200. The following data are available for adjusting entries: Supplies (feed and straw) in the amount of $30,400 remained unused at year-end. Annual depreciation on the buildings is $6,000. Annual depreciation on the equipment is $5,500. Wages of $4,000 were unrecorded and unpaid at year-end. Interest for six months at 9% per year on the note is unpaid and unrecorded at year-end. Income taxes of $16,500 were unpaid and unrecorded at year-end.
Answer:
See answers below in the explanation
Explanation:
Journal Entries :
Journals
Date Account and Explanation Debit Credit
a Accounts receivable 210300
Service Revenue 210300
(Record earned revenue)
Cash 62300
Service Revenue* 62300
(Record earned revenue)
b cash 199100
accounts receivable** 199100
(Record collection Account)
*$41000+$20500=$62300
**$4400+$210300-$$15600=$199100
c Supplies 62900
Accounts Payable 62900
(record purchase of supplies on credit)
d Supplies 7400
Cash 7400
(record purchase of supplies
e Wages Payable 14200
Cash 14200
Record Payment of previous wages
Wages Expenses 112000
Cash 112000
(Record Payment to Employees)
f Income Tax payable 15100
cash 15100
(Record Payment of Income taxes
g Accounts Payable 73000
cash 73000
(record payment of account)
h Interest Expense 2700
Interest Payable 2700
Cash*** 5400
(Record Payment of Interest)
i No journal entry required
j Property Taxes Expense 17000
cash 17000
(Record payment of property taxes)
k Dividends 7200
Cash 7200
(Record Payment of dividends)
*** $60000*9%=$5400
What is the difference between absolute advantage and comparative advantage?
Answer:
The Absolute Advantage is the indwelt ability of a country to produce specific goods in an efficient and effective manner at a relatively lower marginal cost.
While
Comparative Advantage refers to the country's capability of producing the specific good at lower marginal cost and opportunity cost.
Answer and explanation:
Absolute Advantage is an individual, company, or country's ability to produce a good or service at a lower cost than any competitor. To offset its competitor costs and earn higher profits, an organization with an absolute advantage requires fewer inputs or more productive processes.
Comparative advantage is an individual, firm, or country's ability to produce a good or service at a lower opportunity cost than its competitor. Having a comparative advantage doesn't mean that one entity is absolutely better at producing that good or service than another. It means it sacrifices less.
Five years ago, Jane invested $5,000 and locked in an 8 percent annual interest rate for 25 years (end 20 years from now). James can make a 20-year investment today and lock in a 10 percent interest rate. How much money should he invest now in order to have the same amount of money in 20 years as Jane?
Answer:
invested amount = $5,089.9
Explanation:
given data
invested = $5,000
interest rate = 8%
time = 25 year
interest rate = 10%
time = 20 year
solution
we get here interest amount that is
amount = invested × [tex](1+r)^{t}[/tex] .............1
amount = $5,000 × [tex](1+0.08)^{25}[/tex]
amount = $34,242.38
and
now we consider here x amount is invested so here we get invested amount in 20 year with 10 % rate
amount = invested × [tex](1+r)^{t}[/tex] .............2
$34,242.38 = invested × [tex](1+0.10)^{20}[/tex]
invested amount = $5,089.9
Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings:Direct materials ?Direct labor $472,500Variable overhead 15,000Fixed overhead 18,000Next year, HHH expects to purchase $25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows:Direct Materials InventoryBeginning $4,000Ending 2,600There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day.Required:1. Prepare a statement of cost of services sold in good form. If an amount is zero, enter "0".Happy Home Helpers, Inc.Statement of Cost of Services SoldFor the Coming Year
Answer:
$532,500
Explanation:
The question is to compute the Statement of Cost of Services Sold for Happy Home Helpers Inc.
To compute this statement, the approach is to sum all direct costs associated with the service provided by the firm.
Particulars Amount Amount
Opening Inventory Of Materials $4,000
Add: The Purchase of Direct Materials $25,600
Direct Material available $29,600
Subtract: Closing Inventory of materials ($2600)
The Direct Material Used for the year $27,000
Add:
Direct Labour Cost $472,500
Variable Overhead Cost $15,000
Fixed Overhead cost $18,000
$505,500
The Cost of Services of HHH Inc $532,500
Which of the following statements is true?
a.IT equals business success.
b.IT equals business innovation.
c.IT represents business success and innovation.
d.IT enables business success and innovation.
Answer:
d.IT enables business success and innovation
Explanation:
Information technology (IT) relates to use and maintenance of computers, software and networking systems so as to recover useful data or transmit data. Growth in information system has lead to an increase in innovation, which means performing a said task more efficiently and effectively.
Progress in Information Technology has made complex tasks easier and have boosted the efficiency. By leading to innovation, IT gradually enables a business to succeed.
Final answer:
IT enables business success and innovation by providing necessary tools and platforms, although its impact also involves shifts in employment and requires regulation and human capital investment.
Explanation:
Among the given options regarding information technology (IT) and its role in business, the most accurate statement is that IT enables business success and innovation. This is because IT itself doesn't equate to either business success or innovation, but rather provides tools, processes, and platforms that can be leveraged to drive business success and foster innovation. The use of IT has allowed companies to expand their market reach, improve efficiency, and create new business models. However, as indicated by Perez's research, the impact of IT also includes shifts in employment and economic opportunities, which require proper regulation and investment in human capital. Furthermore, the advent of IT has led to the rise of 'megafirms' such as Amazon and Apple, highlighting the dual nature of IT in promoting both opportunities and challenges in the modern business landscape.
There is a fixed cost of $50,000 to start a production process. Once the process has begun, the variable cost per unit is $25. The revenue per unit is projected to be $45. a. Write an expression for total cost. b.
Answer:
$50,000 + $25x
Explanation:
Given that,
Fixed cost to start a production process = $50,000
Variable cost per unit = $25
Revenue per unit is projected to be $45
Therefore,
Let the number of units produced be x,
The total cost function is as follows:
Total cost = Fixed cost + Variable cost
= $50,000 + (Variable cost per unit × Number of units)
= $50,000 + $25x
Is it possible that a firm's production function exhibits increasing returns to scale while exhibiting diminishing marginal productivity of each of its inputs? To answer this question, calculate the marginal productivities of capital and labor for the production of Crocs using the production function
q=AL^αK^β=21.5L^0.85K^0.5
A.) This production function exhibits: (Increasing or Diminishing?) marginal product for labor and (Increasing or diminishing?) marginal product for capital?
B. This production function exhibits (increasing, decresing, or constant?) returns to scale?
C. Therefore, a production function (can or cannot?) exhibit diminishing marginal returns while exhibiting increasing returns to scale.
A.) The production function q=AL^αK^β=21.5L^0.85K^0.5 exhibits:
Diminishing marginal product for labor: As the amount of labor (L) increases, the marginal productivity of labor decreases. This is evident from the exponent of 0.85 in the L term, which is less than 1, indicating diminishing returns to labor.
Increasing marginal product for capital: As the amount of capital (K) increases, the marginal productivity of capital increases. This is evident from the exponent of 0.5 in the K term, which is greater than 0, indicating increasing returns to capital.
B. The production function exhibits increasing returns to scale. To check for returns to scale, we examine the exponents (α and β) of the input factors. Since α + β = 0.85 + 0.5 = 1.35, which is greater than 1, the production function exhibits increasing returns to scale.
C. Therefore, a production function can exhibit diminishing marginal returns while exhibiting increasing returns to scale. This is possible when the sum of the exponents of the input factors is greater than 1, as is the case in this production function (α + β = 1.35). Increasing returns to scale mean that a proportional increase in all inputs leads to a more than proportional increase in output, while diminishing marginal returns indicate that each additional unit of an input contributes less to output as more of that input is used.
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Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $ 5,100 Salaries expense 2,050 Accounts payable 3,100 Retained earnings 4,050 Utilities expense 1,200 Supplies 13,500 Service revenue 9,000 Common stock 5,700 Required: Use only the appropriate accounts to prepare an income statement.
Answer:
Net income = $5,750
Explanation:
The question is to compute the income statement based on given information
COWBOY LAW FIRM'S INCOME STATEMENT for DECEMBER ENDING
Description Amount ($) Amount ($)
Service Revenue 9,000
Deduct the total expenses as follows:
Salaries 2,050
Utilities 1,200
Total Expenses (3,250)
Net Income 5,750
Note: that the remaining figures, cash, accounts payable, retained earnings and the common stock are relevant for the preparation of the Balance sheet or the Statement of Financial position. The balance sheet is grouped into asset- cash, liabilities - accounts payable and equity - stock and retained earning.
Final answer:
To prepare the income statement for Cowboy Law Firm, one must list the Service Revenue of $9,000 and subtract the sum of Salaries Expense and Utilities Expense totaling $3,250 to arrive at a Net Income of $5,750.
Explanation:
To prepare an income statement using the provided account balances for Cowboy Law Firm, we consider only those accounts that reflect the firm's revenues and expenses within the period. The income statement will show the firm's profitability by subtracting total expenses from the total revenues.
Here’s how you can calculate it:
Service Revenue: $9,000
Total Expenses: Salaries expense ($2,050) + Utilities expense ($1,200) = $3,250
Next, we calculate the net income:
Net Income:
= Service Revenue - Total Expenses
$9,000 - $3,250
= $5,750
The Net Income is the figure that will be reported on the bottom line of the income statement for Cowboy Law Firm. In this simple income statement, we ignore other accounts such as Cash, Accounts Payable, Retained Earnings, Common Stock, and Supplies as they are not relevant to computing the firm's profitability for the period.